Step Number

Step in the Process

Develop and implement budgets to control your progress toward your goals.

Define your financial goals.

Develop the financial plans and strategies needed to achieve those goals.

As your personal circumstances change, redefine your goals and revise your plans and strategies.

Develop and use financial statements to evaluate the results of your plans and budgets.

Implement your financial plans and strategies.

Financial goals describe the desired of your financial planning activities. Most financial advisors recommend developing goals with three broad categories of completion dates:

$$ Long$-$term goals, which identify wants and needs that are expected to be realized from now

$$ Short$-$term goals, which address more immediate needs and wants, such as those occurring within the next months

$$ goals, which identify wants and needs that occur between the other two categories

Your financial goals and aspirations can be differentiated according to several criteria, including their target completion dates, potential effectiveness, importance, and estimated cost, among others.

Identify whether each goal$-$writing practice will make the goal more or less effective.

Goal$-$Writing Practice

More Effective

Less Effective

Chloe believes that goals, once established, should never be changed.

Mia$$s desired financial outcomes are expressed in monetary terms.

Shiloh$$s goals include target completion dates and are prioritized according to their perceived importance.

David$$s financial goals are not consistent with his wants, needs, and financial resources.

Continue without saving