The first thing that must be cleared out while dealing with your finance is the difference between financial dream and financial goal. While both might sound the same, but in real sense it is different. Financial dream is just like any of your dream which you hope for, while your financial goal is something that you plan for. And it is the planning rather than hoping which will change it into a financial reality. You might get to know of this difference with expert advisors who have spent years into the business. Cody Winters, who is a financial analyst, works to make sure that his customers enjoy strong financial independence in the future when customary employment is no longer a feasible option. He clears out some of the issues that most of his clients face while determining the difference between financial goal and financial dream.
What does this Financial Objectives look like?
The various features that a Financial Goal states are
- your plan of accomplishment
- determining the time to make the dreams into reality
- the resources that you might need to make it happen
- Planning the goals that might fit in the overall budget and life.
Keeping these factors in mind, how can you create your own objectives? Answering to this Cody says there is a methodical procedure to this as well.
- Jot down your objectives on pen and paper and think how you plan to achieve them. Differentiate them on terms of short term goals, midterm goals and long term goals depending on the time required to achieve the goals. This will help you estimate the time that might be required for you to be financially stable.
- Costing is one big feature in earning the stability. So after you have estimated your time, it is time to estimate your budget. By doing this it becomes easier for your advisor to determine the correspondence plan that might work.
- Now that you begin to do your work must have your deadline set. You cannot afford to keep on managing your finance for eternity. Then the entire business gets at halt. So fix a date within which you prefer having your plan set. Keep in mind the execution process is a time taking one and you cannot compromise with it.
- For determining your goal, you must have some savings. So divide the cost of first set of plan, by the number of weeks that it might take. That will help you to determine the amount that you need to save per week to achieve the goal. Get this figure entered in the column of amount to save per week, and then carry on with the same process for all the rest of your plans.
- Be realistic about accomplishing your goals, never set any goal that might end up frustrating you. Keep being motivated to visit the list at regular interval and check the work on progress.
Cody Winters says that, it might take some time of your own to have your dreams transferred into objectives, but once it is being done you can be rest assured to have a definite plan set for your financial growth. And the chances of receiving the result are pretty high.