The Money Solutions

Because everyone is different, each person has his or her own financial goals -- and his or her own way of reaching them. This means that as you set your financial goals, you need to keep your own personal style in mind, and set goals according to your priorities. If you take the time to set financial goals that are personal to you, you will be more likely to work toward them, achieving success.

Decide What's Important to You

The first thing you need to do as you begin setting financial goals is to figure out what is important to you. Think about your priorities. What do you want to accomplish with your money? Whether you want to volunteer, travel, or just sit on the porch surrounded by your family, you need to decide what motivates you. Your financial goals should be a reflection of what you value. There are no right or wrong answers. Honestly evaluate what you want out of life, and what is most important to you. Once you have that figured out, you can begin setting financial goals that work for you.

How Much Do You Need?

After you know what you want to accomplish with your money, you need to figure out how much you will need to meet your financial goals. Estimate how much it would cost to live a traveling lifestyle. Figure out what it would take to set up a charitable foundation. Whether you are figuring out your likely monthly expenses during retirement, or saving up to go back to school, you need to have an estimate of what it will cost to accomplish your dreams. Once you have that estimate, you can begin making a plan that allows you to achieve your financial goals.

Next, break down that amount into something manageable. Decide how much you will need to set aside each month to help you reach your goal. You can use financial calculators online to help you estimate probable returns with different investments so that you can determine an asset allocation that works for you.

Where Will You Get the Money?

Now that you know what you want to do, and how much money it will take, it's time to decide where you will get the money from. When setting realistic financial goals, you also need a plan for getting the money you need to make it happen. If your goal is to help pay for your child's college, you will need to figure out where the money to fund a 529 plan will come from. If you are planning for retirement, you will need to determine how much you need to set aside to build enough of a nest egg to live off when the time comes.

Your money is likely to come from these sources: 1. cutting expenses and 2. earning more. You can look for ways to spend less so that you have the money you need to reach your financial goals. You could also look for ways to earn more money. You can cultivate diverse income streams to provide a regular source of income that can help you reach your goals faster.

In the end, setting financial goals that work for you requires some planning. Decide what you want to do, and then make a plan to achieve your dreams. If you are working for something that's important to you, and if you have a plan of action, you will be more likely to succeed.