Instructions:

Once you have evaluated your current financial situation, you are ready to move forward in the financial planning process. The second step is developing your financial goals. Setting goals will give you a direction for your plan and a destination toward which you want to head.

When creating financial goals, you will want to consider your stage of life. If you are 20 years old and plan to be a student for the next two years, your goals will be different than if you are in your mid-20s and have started your career or family. If you have a growing family, your goals will be different than if you are an empty nester.

Your financial goals should be SMART, that is specific, measurable, attainable, realistic, and time-based. You should also develop short-term, intermediate, and long-term goals. Developing each of these types of goals will allow you to achieve successes early in the plan while also keeping your eye toward the future. Short-term or intermediate goals may also serve as stepping stones to reach long-term goals. For instance, a short-term goal of saving $200 a month may help you accumulate funds for the down payment on a home. An intermediate goal of paying off student loan debt a year ahead of schedule may help you free up monthly income that could instead be used to make a car payment. A long-term goal may be to invest for retirement.

When developing your goals, be sure to differentiate between necessities and wants. Establish priorities. Consider the net worth you calculated in step one and how realistically your goals align with your current financial situation.

Finally, consider goals that involve investing in Gods Kingdom. These could range from giving to your local church on a regular basis, to supporting a missionary, or giving to a ministry or charity which you care about. You may be at a stage of life or in a financial position to do something big, such as establishing a scholarship endowment, building an orphanage, or launching a non-profit.

Using the worksheet on the Personal Financial Planning file, describe your goals for your personal financial plan. Be sure to prioritize your financial goals in order of their importance.

Once you have set your goals, refer to your target date and the duration of your goals costs to determine a monthly cost that will be associated with working toward your goal.

Write a 200- to 250-word reflection on your goals, including your priorities.

You will submit the required reflection, as well as the financial plan worksheet (comprising goals and their descriptions). Feel free to use hypothetical numbers. (I do not need to know your personal business.) Submit both in one Word document.