There’s a quote about the importance of setting goals that says, “If you don’t know where you’re going, any path will take you there.” You probably have dreams about retirement, vacations, hobbies and more. But if you don’t have a strategy with financial goals in place, you may not make the choices that can best set you on the path to achieve those dreams.
Setting goals helps define and showcase your purpose, passions and priorities. And establishing your own strong financial goals can help you earn and enjoy a wide variety of short- and long-term achievements throughout your life. When you reach your financial goals, you can feel a sense of accomplishment in seeing your efforts literally pay off. But how do you get started?
Prioritize your needs and wants. Think about the things that are most important to you and then outline them as financial “must-haves” and “wishlist” targets. Start with the big-ticket items and work through to ideas that may not cost as much. A musthave for many people is having enough to live comfortably through retirement. Being able to afford the college of your child’s choice, without incurring mounds of debt, is another. Your wish list, on the other hand, may include things like saving for vacations, hobbies or entertainment expenses.
