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1.
Narrow your objectives.
You probably won't be able to achieve every
financial goal you've ever dreamed of. So identify your goals clearly and
decide which are most important -- by concentrating your efforts, you have
a better chance of achieving what matters most.
2. Focus first
on the goals that matter.
To accomplish primary goals, you will
often need to put equally desirable but less important ones on a back
burner.
3. Be prepared for conflicts.
Even worthy goals
often conflict with one another. When faced with such a conflict, you can
sometimes choose by applying criteria like: Will one of the conflicting
goals benefit more people than the other? Which goal will cause the
greater harm if it is deferred?
4. Put time on your
side.
The most important ally you have in reaching your goals is
time. Money stashed in savings accounts or invested in stocks and bonds
grows and compounds. The more time you have, the more chance you have of
success.
5. Choose carefully.
In drawing up your list of
goals, you should look for things that will help you feel financially
secure, happy or fulfilled. Some of the items that wind up on such lists
include building an emergency fund, getting out of debt, and paying the
kids' tuition. Once you have your list together, you need to rank the
items in order of importance (if you have trouble doing so, use the
CNN/Money Prioritizer for help).
6. Include family
members.
If you have a spouse or significant other, make sure he or
she is part of the goal-setting process. Children, too, should have some
say in goals that affect them.
7. Start now.
The longer
you wait to identify and begin working toward your goals, the more
difficulty you'll have reaching them.
8. Sweat the big
stuff.
Once you have prioritized your list of goals, keep your
spending on course. Whenever you make a large payment for anything ask
yourself: "Is this taking me nearer to my primary goals -- or leading me
farther away from them?" If a big expense doesn't get you closer to your
goals, try to defer or reduce it.
9. Don't sweat the small
stuff.
Although this lesson encourages you to focus on big-ticket,
long-range plans, most of life is lived in the here-and-now and most of
what you spend will continue to be for daily expenses -- including many
that are simply for fun. That's okay -- so long as your long-range needs
are also provided for.
10. Be prepared for change.
Your
needs and desires invariably change as you age, so you should probably
reexamine your priorities at least every five
years.
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