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.
