Alexandra Armstrong: Hi! I am Alexandra Armstrong and I am a member of Financial Planning Association. I am here to discuss the basics of financial planning. Right now, I am going to talk about establishing your goals.
You probably have set some specific life goals of your own already. A comfortable retirement, a college education for your children, your own business or a dream home. Goals differs for every person. But whatever your goals may be you need a plan to reach them. Think of your goals as your financial targets. If you haven't already set goals for yourself you can begin by making a list of the things you want to accomplish. The first time, you do this just describe the goals without taking into account what it would take to achieve them. Then revisit your list making your goals increasingly more specific and measurable. Eventually, you will be able to express your goals in dollar amounts or in relation to your current income. Then us you review your list of goals prioritize them in terms of importance to you. For example, if paying for your children's education is your top priority, you may find that you have to delay that dream of owing a beach house for a few years. Now that you know how to establish your goals, let's talk about gathering all the necessary data to create a plan to financially target your goals.