One key element of financial planning, therefore, is to clearly define
your financial goals in writing, and then
prioritize them.
With specific and measurable financial goals,
you can estimate the time frame in which
each goal must be realized.
Some goals are long term.
Others are short term, ones you will want to achieve in five years or
less — money for a new car, a down payment on a home, or next year’s
vacation, for instance.
Having specific goals also helps you determine the amount of money that
you’ll need to meet each goal. Then, you can plan for how you will obtain
the necessary funds within your desired time frame.
