Finances can put anyone to the point of worries and anxiety. Thinking about setting and balancing financial goals can be overwhelming. However, setting financial goals can be easier if you know what really matters to you and what you want to achieve financially.
Any goal that has no clear objective is nothing more than a plan without action. And this couldn’t be truer for financial matters. Sure, all of us want to be successful. However, you need to be clear about how you define success. For some people, success is having a luxurious lifestyle complete with a big house and fancy vehicles. For others, it’s owning a business or having enough financial security to avoid stressing about money.
You also need to visualise where you want to be in the future and set aspirations that align with your values. Make sure to leave room for immediate goals as you form a plan. Defining your goal clearly is vital. A goal is the first step that sets you on a path. What matters most to you? What can help you stay the course?
Meanwhile, your goal should be realistic. It is nice to be optimistic, but being too ambitious is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going out of the line will definitely hurt your chances of achieving them.
Once you’ve set your goals, the next step is to identify your time frame. You need to categorise your objectives into short, medium, and long-term financial goals so that you’ll have a focus on your plans. It also helps you match your goals with the appropriate investment resources.
Short-term goals are those you hope to achieve within the next one to three years. Medium-term goals are three to five years away. Meanwhile, goals are more than seven years away – these include your life’s biggest goals like retirement.
For more on financial goals and how to make priorities, you should check out this nice article: https://www.abc.net.au/news/2019-06-21/how-do-i-invest-my-money-house-car-or-stockmarket/11061648