Determine Your Strategy for Achieving Your Financial Goals
Monday, September 6, 2010 at 10:00AM 
With the S.M.A.R.T. goal framework in mind, plan how you’re going to save the money you need to achieve each of your goals. Some of your goals may be harder to plan than others, especially long-term goals. Here are a few ideas and strategies on how to create effective plans for achieving your financial goals:
Pick Your Priorities
When your financial plan is too crowded, nothing gets done. Identify your top goals by sitting down and filling in the blanks: "If I could just do X, Y, and Z, I'd be so much better off." You’re the only one who can prioritize your goals, build the plan that works for you and, ultimately, helps you achieve your goals.
Break Big Goals Into Bite-Sized Pieces
Breaking long-term goals into shorter ones will make them seem much more attainable. For example, instead of writing down that you will save to buy a car, plan to save $50 per month – or whatever you can realistically afford – toward a down payment. Or, instead of saying you will pay off your credit cards, specify that you will pay an extra $10 per week or month – or whatever you can comfortably afford. Set your goals, make practical choices to carry them out, and follow through all year.
Use Estimates
When planning more than a few years out into the future, use ballpark numbers. Your income and financial responsibilities will change over time. Do yourself a favor, though, and begin to gather more information now so you can gradually begin to form some safe assumptions and develop some realistic numbers for your medium- and long-term goals. Initiating the learning process now will pay off later.
Do Some Reading
Visit the library or use Google to find personal finance books and blogs. I promise that no matter where you look, you can find plenty of personal finance information. If you want great sources of personal finance information, check out the “Further Reading” and “Online Resources” sections at the end of the book.
WARNING!
We have a tendency to believe what we read simply because it's been printed. Don't fall into the trap of thinking all printed financial information and advice is correct. Some of it is not, and you could be at risk financially if you don't use your discretion. The more you learn and understand about personal finance, the better you'll be able to sort out information and misinformation. Be sure to get your information from reliable sources, and remember: if it sounds too good to be true, it probably is.
Reach Out to Others
Write down the names of three people you know and admire that are diligent about money. Call each of them and ask a simple question: How do you plan your finances? You’ll come away with a wealth of practical recommendations, as well as confirmation that none of this is rocket science.
For a list of suggestions of how to reach out to others, visit RealWorld101.org/Reach-Out-To-Others
Find a Planner
If you want some hand-holding (and who doesn’t?), hire help. A planner will help you create a solid game plan that takes into account your financial needs and priorities. And because you’ve paid for the advice, you’ll be more likely to follow it. That’s just one more way to trick your brain into doing a good thing.
If you’d like more information about how to hire a financial planner, visit RealWorld101.org/Hiring-A-Financial-Expert
Commit to Your Plans
Tell someone your plan and agree to a penalty--you'll do your roommates' chores for a month if you haven't saved $1,000 extra by June. The increase in determination will amaze you.
Don’t Get Caught Up in the Details
Given your stage of life, you have time to carefully plan out these strategies to be as effective as possible. Your life circumstances may change and they may affect the course of your plans. The details will come in time, so add as much information as you can now and continuously fill in more details as you work towards your goals.
This is an excerpt from Managing Your Money After College Guide which is included in our Real World 101 Care Packages. Visit our Care Package page to find out how to get one for yourself or for a lucky college grad!
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