28 Dec
2009

Setting goals for your finances is a must. Do you make resolutions or set specific goals for your money regularly? If not, why not? Without goals, you won’t know what to do next to improve your finances. Without goals, money could be slipping through your fingers at an alarming rate. Here’s how to get good at financial goals:

1) Think of the smallest possible goal and get it handled immediately. Put $5 in a savings account (or open a savings account), pay off that payday advance, or read a book about investing. Doing just one positive thing to improve your finances gets you on the right track.

2) Make plans. Consider where you want to be. What kind of life do you want to live? How much do you want your net worth to be? Do you want a house or a car? When do you want to retire? Write it all down – these are your long-term goals.

3) Evaluate. You need to determine where you are to decide where you are going. Take a look at your credit report, tally up all that you owe, gather your financial papers into one big box to go over, and determine your total net income.

3) Once you know where you are and where you are headed, make a list of all the areas of your financial life on a page. You should have categories like these – long term-goals, short-term goals (one to three years), savings, income, credit score, debts, investments. Under each category, brainstorm everything you could do to help improve that area of your financial life. For example, you might open a savings account and start saving for a short-term goal. You might pay $50 towards your signature loans each month until they are paid off. Post your list where you will see it. Aim to cross off as many action steps as you can.