Financial goals describe the desired. of your financial planning activities. Most financial advisors recommend developing goals with three broad categories of completion dates:

Long$-$term goals, which identify wants and needs that are expected to be realized from now

Short$-$term goals, which address more immediate needs and wants, such as those occurring within the next months goals, which identify wants and needs that occur between the other two categories

Your financial goals and aspirations can be differentiated according to several criteria, including their target completion dates, potential effectiveness, importance, and estimated cost, among others.

Identify whether each goal$-$writing practice will make the goal more or less effective.

Goal$-$Writing Practice

More Effective Less Effective

Eve's desired financial outcomes are expressed in monetary terms.

Heather's goals include target completion dates and are prioritized according to their perceived importance.

Neal's financial goals are not consistent with his wants, needs, and financial resources.

Eliza believes that goals, once established, should never be changed.