Setting Financial Goals

In this topic, you learned how important it is to have goals in order to get the things you really want. You learned that goals need to be specific, measurable, realistic, and should have a plan of action. Goals give you a target. After you know where you are going, you can make a specific plan to get there. Remember, goals require sacrifices. You may have to give up something you want today so that you can get something you want more later.

Now you know where you are—your personal net worth and you know where you are going—your financial goals. But, you can’t just sit back and wait for things to happen. You need a few more tools to help you achieve your goals. The first tool is a budget. You need to know where all of your money is going! In the next topic, we will discuss budgets and record keeping.