Week 3: Establishing Financial Goals

It's hard to believe, but we've already reached Week 3 of Personal Finance Resolution!

In case you're just joining us, please take a moment to read through our previous issues below:

Week 1: Assessing Your Current Financial Health

Week 2: Setting Up a Budget


Now on to the topic for Week 3:
Establishing Financial Goals

This week's Activities for Success:

1) Tweet or share your Personal Finance Resolution

Get Your Friends to Join!
Tweet Your Resolution
2) Complete the Retirement Calculator

3) Set 2 financial goals for yourself: one short term and one long term

As with most things in life, it is important to set goals for yourself when it comes to personal finances.
Everyone's goals are going to be different and will depend on a variety of factors like current income, lifestyle, children and retirement aspirations.

A good tip for setting goals is to adhere to the "S.M.A.R.T." method, making sure they are:
Specific
Measurable
Attainable
Realistic
Time-sensitive

For Personal Finance Resolution, we'll focus on two types of goals: short term and long term.

Let's start out with long term financial goals, which are generally planned more than 10 years out. The most important long term goal is retirement planning, which an estimated 40% of people under the age of 50 are not preparing for. Take a moment to complete the Retirement Planning Calculator below to see how much you should be putting away for your golden years.



After completing this activity, you should have a better sense of how much you need to retire and the amount you should be saving to reach that number. A good long term goal to make for yourself this week is to increase your 401(k) contribution or simply schedule an appointment to meet with a financial advisor. Remember, taking small steps now will set you up for success in the future.Also important to your personal finances is making short term financial goals, which are generally planned 6 months to 3 years out. These goals can include paying off credit card debt (which we'll cover in next week's issue), refinancing your mortgage, or starting a college savings plan for a child. Below are some resources to use in making these short term goals:

How to Refinance Your Mortgage

Starting a College Fund for Your Child

Keep in mind when setting these goals for yourself that reaching them takes patience, but the payoffs will be worth it in the long run.

This week's Activities for Success:

1) Tweet or share your Personal Finance Resolution

2) Complete the Retirement Calculator

3) Set 2 financial goals for yourself: one short term and one long term

Terms Used in this Issue:

retirement planning

financial advisor

(k)

refinancing

Make sure that you invite your friends to join you!
By InvestorGuide Staff

Copyrighted 2016. Content published with author's permission.

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