Financial Goals - Part 2

Keep in mind that by placing a time frame on your financial goals you are motivating yourself to get started and stick to your goals, which will heavily improve your chance to succeed. Also remember that you can adjust the time frame as needed, but don't take too many liberties with your deadlines or you may never reach your goals.

Long-term financial goals (those over 5 years) are highly unlikely to occur overnight, no matter how hard you work to achieve them. While you might develop significant income streams outside of normal savings accounts or the stock market, you shouldn't you’re your future figures on potential income from a business venture. Make sure you base your figures off verified income.

Here are some examples of long-term financial goals: college education for a child, a retirement plan or the purchase of a home. Whatever your long-term goals are, they generally will require longer commitments and often more money in the end.

Intermediate-term goals (1-5 years) are the type of financial goals that can't be executed overnight but might not take many years to accomplish. Examples might include purchasing/replacing a car, getting an education or certification, or paying off debts like credit cards, etc. (depending on the amount).

Short-term financial goals (within one year) generally take one year or less to achieve, based on the date the task requires fulfillment, the total estimated cost, and the required savings. For the most part short-term goals will serve as mini-goals that will serve as smaller victories and help you accomplish your mid to long-term financial goals.

Sometimes deciding on a starting point for your financial goals can be a bewildering experience, so here are some very basic tips to help you in making the best choices for you. The below tips are very general in nature – you should develop your own custom goals once you have reviewed your own financial situation.

  • Begin by taking 5%-10% out of each paycheck and put it in a savings account. While interest rates are not exactly impressive, you would be surprised how quickly they can compound over time.
  • Look into different investment strategies such as IRA's, stocks, RRSP's, mutual funds, personal investments, etc. There are many more and all can assist you in achieving your short and long-term goals.
  • Start making a budget for yourself that leaves you with some extra money at the end of each week. This means you cannot live outside your means.
  • Use coupons. They may seem like small savings, but when added together you could save up to $20.00 to $30.00 during each trip to the market.
  • Shop around for bargains, and don't neglect online shopping. Sometimes you can find extraordinary deals that aren't available via retail outlets.
  • Work with a credit counselor to get help in lowering your monthly expenses and get rid of your debt.
  • Consider developing other income streams that possess the capacity to offer long-term income, particularly ones that you can start with minimal time or financial investment. Affiliate marketing is a prime example of this.

The above tips are just a few of the things that you can do to help realize your financial goals. Naturally they by themselves are not enough – it's important that you work them into solid financial goals worksheets.

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