What are short terms goals? Short term goals can be anything you'd like save for or purchase. Anywhere from within the next month, this year, or maybe even the next two or three years. Next try to determine whether your goals are either something you "want" or something you "need". Dave Ramsey suggests asking yourself these three questions:
- "If we didn't purchase this item this year would it make a big difference to both of us?" If it doesn't, it slides over to the wants list.
- On the needs list, ask yourself, "If we could only purchase one of these items by saving for it this year, which one would we prioritize first?" Then, choose which would be the second and so on for both the needs list and wants list.
- "How much will each item cost?" Begin researching to what these particular items cost.
What are long term goals? Loan term goals are those that you plan on achieving in the next three years or longer. For instance, my wife and I started our plan earlier this year to be debt free in the next five years. Under normal circumstances we weren't able to pay off all of our credit cards in a few months or even year, but five years was a realistic goal. Just like short term goals ask yourself questions to determine your specific long term goals. Some of the questions you can ask yourself can cover:
- Paying off debt
- Funding College for your children
- Automobile replacement
- Pay off your home
- Starting a business
- Giving to Charity
- Paying for your child's/children's wedding
- Remodel your home
- Financial freedom
The list is endless, but you will never reach your goals if don't write them down, make a plan to execute them, and stick to them.
Let us hear from you. What are some of your long and short term goals?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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