Money Management

Goal Setting

Goals are Specific

Do you have a goal, or is it a dream? A dream is vague. "In a few years we hope to buy a house." "I want to send my child to college." "I want to be comfortable in retirement." These are dreams.

A goal is specific, achievable, written, and has dates to begin and end. "By the year 2006, we will have the $6,000 for the down payment on a house." "By the time my daughter is 18, I will have $40,000 in savings, stocks, and bonds to pay part of her college costs." "By the time we are 62, our combined income from pensions, Social Security, and savings and investments will be about 80 percent of our pre-retirement income."

Writing Your Goals

Why should you write financial goals? Writing financial goals gives you direction in your money management. Goals are like a road map that you refer to over time. Begin to keep a running list of your financial goals. You'll find a suggested form with an example of how to complete it below.

Some goals may require money such as "save $500 for a certificate of deposit by a certain date." Others may be activities you need to do to get your finances in order, such as "set up a good system for keeping financial records" or "call Social Security for information about my benefits." Write them all down on a goal list! Always put a target date on each goal, and if it's going to cost money, try to include an estimate of the dollar amount you'll need to set aside. You'll find it very satisfying to fill in the date when each goal is achieved.

Print My Financial Goals List (PDF)

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January 13, 2003

E-mail: sweedler@uiuc.edu

Consumer and Family Economics
Department of Agricultural and Consumer Economics
University of Illinois Extension
University of Illinois Urbana-Champaign