Chapter 1. Purpose, types, and terms of goals

 

A goal is a desired result or possible outcome that an individual, a group, or a system envision, plan and commit to achieving. It is also a desired end point in a preconceived development that is normally grounded in a finite time or a deadline. Let's learn about different types, terms, and purposes of goals. 

 

How to

There are many types of goals that form an interlocking relationship in every person's life:

 

Goals are divided into three (3) distinct terms:

1. 1. Short-term -  foundation, provisional and objectives
   2. Long-term -  lifetime or capstone
   3. Enabling - stepping stones or short-term that lead to long term goals.

 

Financial goals are only a part of life's goals in general, but they form the basic ingredient needed to support (financial) all other goals. Financial goals start with self-discovery of your values, needs, hopes, desires, standard of living, your own life economic cycle, your money personality (saver, spender, risk taker, security seeker, flyer) your earning potential, your dreams and conquests, and your golden age retirement without having to stop short of including your bucket list. 

Here is a list of the most common financial goals:

 

Practice

Now that you understand goals and in particular financial goals. Consider the financial goals listed above and assign a potential dollar amount to each one. Think about what it would take to accomplish each one then discuss the importance of setting financial goals with a friend or a family member.

 

Congratulations! You can move on to Chapter 2. Key elements of effective goal setting

To review the full module on SMART goals, click here.