Take some time to write specific, long-term financial goals. You may want to take a month-long trip to Europe, buy an investment property, or retire early. All these goals will affect how you plan your finances. For example, your goal to retire early is dependent on how well you save your money now. Other goals, including homeownership, starting a family, moving, or changing careers will all be affected by how you manage your finances.
Once you have written down your financial goals, prioritize them. This ensures that you are paying the most attention to the ones that are of the highest importance to you. You can also list them in the order you want to achieve them, but a long-term goal like saving for retirement requires you to work towards it while also working on your other goals.
Below are some tips on how to get clear on your financial goals:
• Set long-term goals like getting out of debt, buying a home, or retiring early. These goals are separate from your short-term goals.
• Set short-term goals, like following a budget, decreasing your spending, paying down or not using your credit cards.
• Prioritize your goals to help you create a financial plan.