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Personal Financial Goals Planning

When you plan your personal finances you have to first start controlling your daily financial activities. This should be done in order to identify for yourself the purchases that bring you most satisfaction and pleasure. After you have established your budget that will facilitate this, your next step toward financial success is the determination of long term financial goals.

Without clear and specific financial goals to follow you are just leaving yourself to the drift and risk ending up in a financially unbeneficial situation. Often times your failure is due to insufficient and inefficient planning. As a result you are not able to reach the financial independence you strive to.

In order to successfully determine your financial goals, follow the proceeding simple steps:

  1. Recognize the as many financial goals as possible. They may range from the purchase of a new car or house, to going to an exotic place or sending your children to university. You should also include such long term considerations as retirement planning.
  2. Classify your financial goals by the time it will take to achieve them. They should be grouped into short-term, which will need less than an year; medium-term, which will need between 1 to 3 years; long-term, which will take five or more years.
  3. Build a stable knowledge base. There are myriads of sources you can refer to in order to get the information you need to make wise investment decisions. Surf the Internet, read financial magazines and newspapers, or purchase one of the many books written by a financial expert. Whatever your choice, implement the acquired knowledge to identify small steps toward the achievement of the goals.
  4. Monitor and measure your development. From time to time, be it monthly, quarterly or other period of time, you should stop and review the progress of your program. You should be able to identify the progress or the lack of such in order to make changes in your approach.

You should act now and don't postpone the identification of your goals for a later period, since they represent the cornerstone for your financial success. 

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