April 9, 2009

Turn Your Dreams Into Reality

A comfortable home, children's education funds or whatever your heart desires. The best way to acquire them is to set a financial goal. There is no hard and fast rule in setting them but here are some simple steps to get you started.

Step #1:
Involve the whole family

When setting your financial goals, it is best to involve the whole family. Their inputs, commitment and support are crucial in achieving your goals.

Step #2:
Make S.M.A.R.T goals

The goals must be specific, measurable, attainable, relevant and time related (SMART). One example of a SMART goal is “I want to settle my credit cards debt by January 2005 based on monthly payments of RM150”.

Step #3:
Write down and prioritise your goals

Write and prioritise them in order of importance or time and place them somewhere where you can see it daily to help you remember and stay focused in achieving them.

Step #4:
Plan and execute

Determine the specific steps that you need to take and execute them. For example, if you plan to increase your monthly savings by RM100 or bring lunch to work, make sure you do.

Step #5:
Monitor your progress

Monitor your progress regularly to ensure that you are on the right course. Allow room for adjustment or changes (if necessary) in your plan.

Step #6:
Persevere

Redefine your financial goals or plan if things do not go as planned. But, never give up.