Setting financial goals is by far the most important part of the planning process! You must establish and clearly define attainable goals that you can feel comfortable with and endorse in a heartfelt way. Vague, overly aggressive estimates of what you would like to achieve, as well as lack of motivation will only lead to procrastination, inactivity, and, ultimately, failure to attain your true goals.

Step 1: Identify and write down your financial goals, whether they are saving
to send your kids to college or University, buying a new car, saving for a down
payment on a house, going on vacation, paying off credit card debt, or planning for
you and your spouse’s retirement.
Step 2: Break each financial goal down into several short-term (less than 1
year), medium-term (1 to 3 years) and long-term (5 years or more) goals; which will
make this process easier.
Step 3: Educate yourself and do your research. Read Money magazine or a book
about investing, or surf the Internet’s investment web sites. Do not be afraid of the
stock market.
Step 4: Evaluate your progress as often as needed. Review your progress
monthly, quarterly, or at any other interval you feel comfortable with, but at least
semi-annually, to determine if your program is working.

Key factors to consider when constructing your investment goals and objectives are:

- time (includes both investment and individual time horizon)
- risk (the uncertainty of loss or the possibility of a misfortune occurring)
- return (what do you want to receive from each investment – income or capital appreciation or a little of both)
- inflation (a dollar today is generally not worth a dollar tomorrow – your – returns are positive provided the net return from an investment is greater than the prevailing inflation rate)
- tax (what you earn and what you keep is important – the investment and structures you may adopt must be tax efficient)

Reaching your financial goals starts with a thorough understanding of your needs and goals. A financial adviser will work closely with you to develop a financial plan that clearly:

- summarises your current financial position
- clarifies your future needs
- identifies opportunities
- sets a realistic investment strategy consistent with your goals
manages risk
- monitors your progress
- measures success

Establish what your goals are. They may be short or long term. Some common goals are:

- Buying a home
- Saving and investing for the future
- Planning for retirement
- Protecting lifestyle
- Transferring wealth to future generations

Related posts:

1. 10 Safety Tips for Surviving the 2008 Financial Crisis
2. Money Saving Tips: : Have a No-Spend Day in 10 Steps
3. Establishing Goals: the 7 Best Qualities of Your Goals
4. Career Builder Guide: How to Choose Your Career Goals
5. How to Make a Personal Development Plan