Take advantage of time

One good way to start setting financial goals is by writing down all the things you want to do in life that will cost you money. Then sort them into short-term goals, mid-term goals, and longterm goals.

• Short-term goals are things that you want to see happen in the next few years, such as buying a car, taking a vacation to travel somewhere you’ve never been, or paying for a wedding

   

• Mid-term goals are a little further down the road — say, five to ten years. They might include buying a home, getting more education, or going into business for yourself.

• Long-term goals are the ones that may not seem urgent now, since they’re a decade or more in the future — paying for retirement, sending your children to college, or buying a vacation home, for example. But these are huge goals with big price tags, and by getting a jump on them early you can take advantage of the time you have to allow today’s dollars to grow into the money you need later.