Like most people, I have a real problem when it comes to setting money goals. You see, many experts say people who fail to budget don’t have goals. Well, I believe it is the opposite…the problem is I have several financial goals. Am I alone in this? You see I didn’t realize it until I was talking to a friend about money. It’s when I realized, the advice I gave was to keep it simple…yet, in my own life, I have made it complex.

Let’s face it, having Money Goal’s and Focus on those goals is what makes magic happen. So, without further a due, I did all the research for you and have identified the four rules needed to have Money Goal’s and Focus.

Prioitization

The first rule of Money Goal’s and Focus is to prioritize them. How do you do that? You start with Identifying your goals as “must-haves” and “nice to have” (needs versus wants). Make sure you stay on budget is a must-have goal, so you of course need to have a budget. This allows you to see how your money is working for you. The important thing is realizing a budget is not set in stone. Its purpose is to be flexible, just like your Money Goals should be.

Example

I am currently saving for a new computer. The computer is a nice to have, because I have a laptop, I am currently using to type out this blog post. Of course, the computer I want is approximately $2800. The reality of it is a $1000 computer will work just as well for what my intentions are. I plan to look for a computer between $1000-$1500.

With all that said, begin by identifying your must-haves and nice to have’s.

Shop or Set

The next step to maintain Money Goal’s and Focus is to shop or set a target. By shopping, you can identify the average cost of whatever your goal may be. This can be used for setting a target as well. Sometimes, doing a little more research will aid you in setting a target. This is another reason to be flexible, most of the time we will only have an estimate of the actual cost. As you get closer to your goal, you can revise your projected numbers. Pro Tip: Depending on how long it will take you to reach your goal, a financial advisor may be a great deal of help. They can provide tools and ideas on how to reach goals faster. This is especially important when setting retirement goals, or kid’s college funds.

Stratigize to Capitalize

This is a great time to introduce the third rule of Money Goal’s and Focus. You must be able to strategize in order to capitalize on your goal. Your goal and the estimated cost will affect your overall investment or savings strategy. You wouldn’t save for a bicycle the same way you save for retirement. Just remember, whether you go in alone or consult an expert you need to balance your money goal with your comfort of risk. Keep in mind as you begin your journey you can always adjust your strategy to take on more risk or less.

Review

Just like setting your Money Goal’s and Focus, you need to identify how often you plan to check in. Depending on the goal you may want to check on it weekly, monthly, or yearly. If you believe you’re not making progress towards your goal, remember the rule Strategize to Capitalize adjust as needed. If you’re money goal is three years or more, I highly suggest a financial advisor. They will help calm your nerves with the financial swings of your investments. It’s best to not overreact to short-term events, and a financial advisor keeps their ear to the ground to identify short- and long-term events.

Wrap it Up

The decisions involved in identifying, prioritizing and achieving your Money Goal’s and Focus can seem time-consuming. By following a well-designed process, you will gain time and more importantly achieve your Money Goals faster.