Financial Planning – Setting Financial Goals to Manage Money Better

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Setting financial goals may seem elementary but setting financial goals is the key to bringing discipline to your money management. And while it is important to live for today you must also plan for tomorrow.

You will admit that there is nothing so comfortable as money. And it is the pursuit of most person but the one thing that is usually missing is how to go about achieving real financial independence and security.

While a job seems like the most viable option for the masses it is road lest likely to reach the intended destination and that is because although financial freedom makes a huge difference in the quality of your life it is created not by huge thing but by doing lots of little things right over a long period of time. And doing the little things will not happen unless you have a plan that you are committed to – Never forget that all success whether in business, in relationships or in life, comes at the end of the road of commitment!

This is why setting financial goals is a significant step that you must take if you are going to manage your money in a way that will allow you to achieve financial independence. If you are not setting specific financial objectives and daily implementing a workable plan then you are setting yourself up for disappointment.

Another important characteristics of you financial goals is that you must have then in writing. It may seem simple but it is the flaw of most plans. You usually feel that you can rely on your memory but this is a mistake.

Here is the result of a survey that was done by Harvard Business School on goal setting that clearly indicate this point. The survey found that:

  1. 83% of persons do not have clearly defined goals
  2. 14% have goals but they are not written down.
  3. Only 3% of persons have goals committed in writing

After a period of 30 years they found that the three percent with written goals was earning an astounding ten times more than the amount of the 83% group of persons without written goals. So:-

  1. Are your financial goals in writing?
  2. Do you have a step-by-step action plan that will lead to your financial success?

The truth is you are where you are today financially because you have not been managing your money based on having specific financial goals. And this unfocused management of your money is costing you your financial well being.

So if you want to change your financial future you have got to set yourself some financial goals. And set them in the following nine areas:

  1. How much of what you earn are you going to keep for you?
  2. How are you going to control your expenses so that you can maximize your income?
  3. What investment instruments are you going to use to help you grow your money?
  4. Do you want home ownership?
  5. How are you going to provide for your retirement years and how would you live those years?
  6. How are you going to develop yourself so that you can increase your ability to earn money!
  7. Do you have adequate and appropriate Insurance to protect you and your family?
  8. How are you going address your legacy and estate planning needs?
  9. What professional help are you going to engage to help you achieve your goals?

Source by Glenn Ferguson

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