Once you have your goals on paper, it's time to do some research. Determine the cost of each goal and the length of time it will take you to reach it. Based upon your current income, can you achieve your financial goals within that timeframe? If not, here are some options:
- Change jobs or start a business so that you make more money.
- Extend the length of time so that you have more time to fund that goal with your current job.
- Modify your goal to something more affordable.
- Seek assistance from a friend or family member.
- Forget about it.
Depending on how important the goal is, you will determine your choice of action. In most cases, it is not good to abandon your goals altogether. If it is important enough to you, seek out ways to make it happen. While most financial goals are rarely easy, sometimes they are not as hard as you perceive them to be either. The key is to do what is right to you.
Some of your goals will be short term while others will be long term. Your short-term goals will be 3 years or less, while your long term goals will be 5, 10, or 20+ years out. Each goal may vary during this timeframe but your short-term goal should always include staying out of debt and having an emergency fund. Your long term goals may include funding your child's college tuition and retirement.
Contingency Planning
Remember that many things may change over the years. For example, if you start a family you may have less money to save. If you have to buy a larger house, you may reduce your savings capacity even more. If you or your spouse becomes ill and unable to work, will you still be able to fund your plans? What will your plan be in the event any of the mentioned events occur?