WHEN you are ready to create your financial plan, the first step you must take is to figure out what you want from your money. This is the step called goal setting. Here’s how to do it well......

When you are ready to create your financial plan, the first step you must take is to figure out what you want from your money. In this process, something we often forget is that our hearts are as important as our heads, and our feeling are as valid as our facts.

When we sit down to create our financial plans, whether we have had a sudden windfall of money or not, we still have the opportunity to decide if we need to make not just financial changes, but personal ones as well. Any form of Planning, especially financial, is a chance for you to step back and take a look at yourself, who you are what you have become or achieved , and where you want to be, financially, personally and emotionally. There are four simple steps to establish your goals. They are as follows :

1. Make A Wish Lists :

This list will include the things we are deeply passionate about It’s not about the money involved ; it’s about the pleasure derived. If you want to possess a villa in Spain, or own a fleet or powerful bikes, put it on the list .

2. Reality Check :

For your wish list to come true take into account factors like risk levels, asset preferences, traveling requirement, family values, financial security and so on.

3. Priorities your goals:

The next thing steps is to priorities the list . It can be divided into your needs and wants. Keep in mind that if your desire to fulfill your goal is strong enough, then even if you have to wait a while, you’ll be able to adjust.

4. Set time frames for the goals:

In this step we also segregate these goals with specific time periods. This is very important to know when we want to achieve our goals. This also helps in selecting and mobilizing the funds in the optimum manner.

(The author is a certified financial Planner)