Lesson 1 - Financial Planning - Part 2

Goals in Life

Part of discovering if you’ve become a Financial Success is by measuring your achievements.  These achievements are commonly referred to as GOALS.  Everyone usually has different plans for life, maybe you want to own your own home, or travel around the world.  Some people want to have a family with children and want to help their children financially later in life.  We always say that people can have as many goals in life as they plan for.  We will break goals into two separate categories

1. Non-Financial
2. Financial

Non-Financial Goals

You might already recognize some non-financial goals, your family, social and political generally have little or no financial connection.  For example, going to play a game of soccer in your back yard or taking a bike ride all have little or no financial connections, you can’t put a price on these activities. And you shouldn't try.

It is important to note that how well someone achieves Financial Goals can influence the amount of Non-Financial goals someone will have.

Financial Goals

Financial Goals will lay the foundation for financial planning. If you had no goals that required money, you would have no need for planning for those events. If we are going to have Financial Goals, it is important that we plan to achieve those goals. Numerous surveys find that most people’s number one Financial Goal is to be financially independent; but what financially independent means to you could mean something completely different to someone else. It is important that we determine narrow goals, instead of listing broad ones that could have a number of meanings. Planning for defined Goals is much more realistic and accomplishable.