The first step in personal financial planning is controlling your day-to-day financial affairs to enable you to do the things that bring you satisfaction and enjoyment. This is achieved by creating and following a budget. Controlling spending, saving money, and investing for the future are all important aspects of financial planning, but those things mean nothing if you don't have specific goals that you're working towards. In order to gauge your financial success, you need to have goals so that you can measure your success and progress. The second step in personal financial planning is choosing and following a course toward long-term financial goals.
The four steps to setting financial goals:
- Identify and write down your goals.
- Break goals down into short-term and long-term goals.
- Educate yourself.
- Evaluate your progress.
I write down my goals in a 5×5p5 goal setting booklet.
It is always in my wallet and I review it regularly. It keeps me focused on what really matters to me.
Enjoy and success!
Ronny
I too write my finacial goals down and check them every day. It is important not only to read them but to say them aloud and let all that you are see and hear the goals and make them concrete. Before long I have accomplished a goal and it is time then to write another one down.