Setting Personal Finance Goals.

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Since we have already discussed Budgeting and the likes, it is highly imperative that we talk about having personal Finance GOALS as this will be a driver in achieving a savings culture and realizing dreams.

So what are GOALS? Goals are object of a person’s ambition or effort; an aim or desired result. Hence, personal finance goals are those objectives and personal financial ambitions one is aiming to achieve within a desired time frame.

Personal Finance goals therefore can be divided into three parts based on the time frame set for the realization of the Goals. They include: Read more

 1)  Short- term personal finance goals: These are ambitions or aims that can be accomplished within one day to two years. An example is renting a befitting apartment, buying a car, buying a land etc.

2) Mid-term personal finance goals: These ambitions or aims that can be accomplished within two to five years.  Examples can include building or buying a house, taking a second degree etc.

3) Long-term personal finance goals: Ambitions or aims that may take more than five years to accomplish are often refer to as long term personal finance goals. A key example is saving for a child’s University tuition as good school cost more this day.  More often than not long-term personal financial goals require regular/ consistent savings.   

I would have failed in doing justice to this topic if I don’t talk about SMART GOALS:

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We need to add the acronym SMART to our Personal financial goals:

S	A smart personal finance goals must be Specific. Your personal Finance goals must be aimed at a specific thing you wish to achieve at the end of the selected time frame. Since it is a Financial goal it must be tied to cost, the total cost of what you want to achieve must be known
M	A smart personal finance goals must be Measurable. You must be able to measure your progress as the selected time frames elapses.
A	A smart personal finance goals must be Achievable. Your personal finance goals must be reasonable and flexible, setting goals too high can lead to frustration and collapse of the goal to be achieved. Be true to yourself when setting your goals.
R	A smart personal finance goals must be Realistic. Setting perfect realistic goals revolves around been true to yourself and been accurate with the financial goal.
T	A smart personal finance goals must be Time Framed. Personal finance goals needs to have time frame as this is the propelling factor for the savings and the investment you will embark upon in order to achieve your financial goals. Everybody need to embark on the journey of taking Smart Personal finance goals, as this helps with personal budgeting (Hyperlink) and also with savings especially what I call Targeted savings which is what we will look at in our next post. Lastly, note that income level is important; by this, your Long term personal financial goal could be my short term personal finance goal and on this basis I want to emphasis that you need not compare yourself with somebody else. www.drdkim.net Feel free to share the blog with friends, families and even foes (LOL) and in case you need clarity please ask. We are all thriving to achieve financial freedom.

S

A smart personal finance goals must be Specific. Your personal Finance goals must be aimed at a specific thing you wish to achieve at the end of the selected time frame. Since it is a Financial goal it must be tied to cost, the total cost of what you want to achieve must be known

M

A smart personal finance goals must be Measurable. You must be able to measure your progress as the selected time frames elapses.

A

A smart personal finance goals must be Achievable. Your personal finance goals must be reasonable and flexible, setting goals too high can lead to frustration and collapse of the goal to be achieved. Be true to yourself when setting your goals.

R

A smart personal finance goals must be Realistic. Setting perfect realistic goals revolves around been true to yourself and been accurate with the financial goal.

T

A smart personal finance goals must be Time Framed. Personal finance goals needs to have time frame as this is the propelling factor for the savings and the investment you will embark upon in order to achieve your financial goals.

Everybody need to embark on the journey of taking Smart Personal finance goals, as this helps with personal budgeting (Hyperlink) and also with savings especially what I call Targeted savings which is what we will look at in our next post.

Lastly, note that income level is important; by this, your Long term personal financial goal could be my short term personal finance goal and on this basis I want to emphasis that you need not compare yourself with somebody else.

www.drdkim.net

Feel free to share the blog with friends, families and even foes (LOL) and in case you need clarity please ask. We are all thriving to achieve financial freedom.