How to set and Achieve Financial goals
Avani Patel
Managing Partner @Mantraa Advisory UAE | UAE Business set up | UAE VAT & Corporate tax advisor |startups| funding |scaleup |outsource accounting | feasibility study | business valuation.
How To Set and Reach Financial Goals
Financial goals are the long-term, short-term, and intermediate plans you have for your finances. The best financial goals align with your values and personal objectives. Not to be confused with a budget or financial plan, financial goals are specific and measurable milestones that, when reached, bring you closer to your ideal future.
What Are Financial Goals?
Your financial goals are the specific monetary amounts you are committed to obtaining that will allow you to realize your vision for your life. As with any goal, financial goals should be aligned with your long-term plans, whether these plans include putting children through school, maintaining a particular retirement lifestyle,?or paying off and staying out of debt.
SMART goals are defined by the following characteristics:
Three Types of Financial Goals
Long-Term Goals
Long-term goals, such as ensuring?financial security in retirement?or paying off your mortgage, are further out on the horizon. Your long-term financial goals often include several short-term or mid-term goals. It’s always a good idea to break down large goals into smaller, more immediate goals.
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Short-Term Goals
In addition to smaller, more narrowly focused goals that contribute to your long-term goals, you may also want to set short-term goals for things you’d like to afford in the near future, such as a bathroom renovation or a trip to France. Notice that our example here is specific. There’s a reason for this.
Mid-term Goals
Mid-term, or intermediate, goals may include endeavors such as saving the premium payment for an annuity?that will provide you with lifetime income, improving your credit score or obtaining the capital to start your own business.
Examples of different types of financial goals include:
Few tips for using financial psychology to achieve your goals include:
Final words of wisdom as said by George Herbert
Do not wait: the time will never be ‘just right.’ Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.”