To manage your money wisely, set financial goals and establish a budget plan to help you achieve those goals.  Financial goals are simply statements about things you wish you could afford-for example, you may have a goal to establish an emergency savings fund of $2,000 by the end of the year.

What are your personal financial goals?  If you had $2,000, what would you do with it?  Would you invest it in your business?   Would you buy a car?

You will be able to accomplish these goals if you manage your finances and put money aside on a regular basis.  The key is to setting financial goals that are Specific, Measurable, Attainable, Realistic, and Trackable (SMART):

• Specific. State exactly what you want to achieve, how you're going to do it, and when you want to achieve it. For example:
  General Goal Statement:   I want to improve my finances.
  Specific Goal Statement:   I want to pay off my medical bill in 8 months by negotiating a payment plan with my doctor.
• Measurable.   A goal should be measurable so you know when you have achieved it.
  General Goal Statement:   I will pay off most of my credit card debt soon.
  Measurable Goal Statement:   In the next six months, I will pay three of my five credit card bills in full.
• Attainable. Make sure the goal is within reasonable reach.
  General Goal Statement:   I will save money.
  Attainable Goal Statement: I will save $1,000 in a year by putting aside $3 each day.
• Realistic. Is the goal realistic for you? Don't ignore your limitations. Your goals need to be tasks that you can reasonably accomplish. 
  General Goal Statement:   By managing my money well, next year I will become a millionaire. 
  Realistic Goal Statement:   By managing my money well, next year I will be debt free and will have an emergency fund equal to three months of living expenses.
• Trackable. Being able to track your progress encourages you to keep going and reach your goal.
  General Goal Statement:   I will increase my savings goal every year.
  Trackable Statement:   Each year I will save 10 percent more than the previous year.

Click here to download Your SMART Goals Worksheet  (Requires Adobe Acrobat Reader)

Next: Establishing Plans to Achieve your Goals
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