Setting goals

Defining your goals is one of the best parts of learning how to manage your money. That’s because the greatest motivator for paying attention to your finances and making the right choices now is your own vision of the future you want.

Studies show that the people who are best at achieving what they want in life are those who take the time to write out their plans. Listmaking is a powerful activity, because it helps you focus on the future and make your wishes seem more concrete. So now’s the time to ask yourself what you want to achieve in life, how you want to live, who you want to be.

Click here for a goals worksheet

Once you’ve got a list of your goals, the real planning can start. You can look at the money you already have, see how you’re saving and investing it, and begin to put together your strategies for getting the things you want. You can also figure out which are more important and which can wait — or go away. As you learn more about financial planning, you’ll find out the different ways to save, invest, and use credit wisely to achieve your goals. But your first and maybe most important step is to have a conversation with yourself about your financial goals and dreams.