Financial goals are targets, usually driven by a specific future financial need. … Many people set goals to save money so they can earn interest on what they invest. When setting financial goals, it is important to have a plan and follow the steps so that you‘re successful in the end.

• Financial goal is the target amount of money required for specific future financial needs. It differs between people to person. A youngster may have a personal financial goal of buying a house in 10 years while a middle-aged person may be investing for an early retirement. As no individual is same, personal financial goals also vary according to your income, spending and saving habits.

In Building a SOLID FINANCIAL FOUNDATION, it should start from ground and up.

1. Healthcare – Short Term and Long Term Care
2. Life Insurance
3. Eliminate Debts
4. Emergency Funds
5. Investments

To Set Financial Goals, there are 6 Simple Steps;

• 1. Figure out what matters to you. Put everything, from the practical and pressing to the whimsical and distant, on the table for inspection and weighing.
• 2. Sort out what’s within reach, what will take a bit of time, and which must be part of a long-term strategy.
• 3. Apply a SMART- goal strategy. That is, make certain your ambitions are Specific, Measurable, Achievable, Relevant, and Timely. SMART.
• 4. Create a realistic budget. Get a strong handle on what’s coming in and what’s going out, then work it to address your goals. Use your budget to plug leaks in your financial ship.
• 5. With any luck, your tough, realistic, water-tight budget will show at least a handful of leftover money. Whatever that amount is, have it automatically directed into a separate account designed to address the first couple of things on your list of priorities.
• 6. Monitor your progress.

Types of Financial Goals – Three Different Types

1. Short Term Financial Goals – Financial goals which you want to achieve in next 1-5 years are defined as short term financial goals.

• Short-term goals could be the purchase of household furniture, minor home improvements, saving for a car down payment, etc. But these short-term goals differ from day-to-day household expenditures.
• A short-term goal is one that you’d want to achieve in one to two years. Most investment advisors say your first short-term goals should be getting your financial house in order by eliminating credit card debt and establishing a rainy day fund.

2. Intermediate Financial Goals – Any financial goal, which you want to achieve in between 5-10 years are intermediate financial goals.

3. Long Term Financial Goals – The financial goals which are more than 10 years away are termed as long-term financial goals. Though I personally consider long term goals as 15 Years away.

• Long-term goals usually take more than five years to reach. If they involve money, they need a disciplined saving and investing strategy. The most important long-term financial goal for almost everyone is to save for retirement. For most people, this is a priority over saving for anything else.

Emergency Fund – An emergency fund is an account for funds set aside in case of the event of a personal financial dilemma, such as the loss of a job, a debilitating illness, or a major repair to your home. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to draw from high-interest debt options, such as credit cards or unsecured loans.

• An emergency fund is a financial security for future mishaps and/or unexpected expenses.
• Financial planners recommend that emergency funds should typically have 3 to 6 months’ worth of income in very liquid form so that it is instantly accessible.