Your Personal Financial Plans and Goals

Due to current economic downturn,your personal financial plans should be the first priority in your life.Also start to set your personal financial plans and goals for year 2009.

Personal financial plans is important ,no matter how much or how little we earn.The secret lies on knowing where you are now,where you want to go in the future and figuring out how to get there.

You can make your money stretch futher if you learn how to manage it carefully,such as

*Know what you want to do with your money

*Know where your money goes

*Know your spending habits

*Develop a prudent spending plan

*Spend wisely and within your means

*Save some money for your future

Include all your family members,especially children,in making your financial planning decisions.This will help you keep to your spending plans and also help your children develop financial planning skills at an early age.

Set your personal financial goals
Setting personal financial goals can help the young as well as adults learn the value of money.Financial goals reflect things you want to do with your money within a certain period of
time.Goalsetting will encourage you to spend and save in a manner that will allow you to achieve your goals.

Seting a series of personal goals will help you to manage your money wisely.Your goals may change from time to time,but they will serve as an encouragement and incentive for you to continue to budget and plan. You should plan for

1.Short Term Goals
Things that can be done in the short term.Perhaps in a week,or a few months,but within a year such as buying new clothes or saving for a vacation.

2.Medium Term Goals
Things that can be accomplished within one to five years or more,such as buying a new car or a computer.

3.Long Term Goals
Things that you would hope to achieve at a mich later period,in five to ten years such as buying a house,saving for your children higher education.

Allocation of savings for there goals depends on a number of factors.These goals will in turn determine your choice of invertments.There is,therefore,a need to prioritise these goals.

The amount set aside for these personal financial plans varies from one individualto another and the factors taken into consideration include age,level of income,expenditure outlay,the number of dependents,job status,marital status and current economic status.