Level 1 of 5 Money Management Levels - Write your financial goal(s)

Do you have financial goal(s)?

The journey begins

Why bother to write financial goal?

Well, it's just like traveling.

When we travel, we usually have a destination. For example, if we want to go see the Eiffel Tower then our destination is Paris, France (not Paris, Texas).

However, when it comes to our finances, often times we don't have any destination. Perhaps we fear that we won't reach it. Don't be afraid, just start small and make it yours.

Here's an example:

• Save $10 a month starting this month.

Too easy? How about this?

• Save 10% of income every month starting this month.

and it doesn't have to be saving related too, for example:

• Go for vacation to New Zealand next year, estimated budget required: $4,500

What important is the goal :

• is clear and specific target.
• has a target time (this year, next year, 5 years from now, ...).
• and has a certain amount of money part of it (so you know how much more is needed)

So, don't write an ambiguous goal, such as:

• Travel to foreign country
• What country?
• When?
• How much is needed?

or

• Be a wealthy person
• How wealthy?
• When?

Having a goal will make a difference when you're presented with options.

Let's say you see a sale at your favorite clothing store, and an item you like that is used to be $299, is on sale for $149 only (50% off).

If you have no goal, there is no other reason to compare with, thus purchasing the item seems to be a good idea.

But if you have that goal of travelling to New Zealand next year and haven't save $4,500 yet, then you can compare whether the $149 item is something that you really need now, or whether that money can help you reach sooner the $4,500 budget for the trip?

In short, it gives you a sense of purpose on where you need to spend the money.

So go ahead and write you goals now, make goals that excite you, and see you on the next level of your financial journey.

(Some more goal ideas):
- Save $5,000 to start my business 3 months from now.
- Save $20,000 for my dream house down payment next year.
- Set aside $150 every month for my kids education.
- Pay loan $100 more than due amount starting next month.
- Save $10,000 to buy gold Apple watch this year.

If you have questions or comments, please drop them on comments section below.

Do you have any financial goal(s) at this moment?

Yes

No

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