Step Number Step in the Process

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

Develop and implement budgets to control your progress toward your 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.

Implement your financial plans and strategies.

Define your financial goals.

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