Section 1.1 Personal Finance Basics 9
waste into the environment are acting unethically, as are government officials
who use their offices for personal gain.
Goals
A goal is an objective you want to attain. Usually, goals are closely related
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your goals may include enrolling in a personal fitness program, avoiding
drugs, and eating nutritious foods. If you consider eventual job security
important, completing some type of career preparation program could be an
important goal. This goal might motivate you to begin a savings program to
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homework in preparation for further schooling.
You can set goals for almost anything in life. There are different types of
goals, such as to be goals, to do goals, and to have goals.
To be goals are related to personality and character. You might want to be
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goals also includes career choices. You may want to be a teacher, an airline
pilot, a scientist, or an artist.
To do goals cover the endless list of things you might want to accomplish.
You may want to learn to play the piano or speak a foreign language. You
may want to go to college, travel, or get a job as soon as possible. You may
want to see a particular movie or make the basketball team. Perhaps your
weekend goal is to clean out your closet and organize your room. These are
all to do goals.
To have goals are easy to identify and continually change. You may want to
have a new watch, some new clothes, a car, a smartphone, or concert tickets.
These goals also include the endless list of routine purchases, such as socks
and toothpaste. They may include costly items for which you need to plan
and save.
Timing of Goals
You also can sort your goals by time schedules. Short-term goals are those
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instance, saving money for a new camera may take a month or more. Medium-
term goals, such as buying a car, may take one to three years to achieve. Long-
term goals, such as completing school, starting a business, getting married, or
buying a house, may take several years to achieve.
Evaluating Goals
No one has the resources to reach all his or her goals at one time. You can
get the most from your resources by planning how and when to use them.
This will help you gain more control over your life and achieve the goals most
important to you as early as possible.
It is helpful to identify your goals and to rank them in order of importance.
This helps you direct your time, energy, and money to the goals that are most
important to you. As you set and rank your goals, ask yourself the following
key questions.
¶ Is the goal realistic and possible? Getting all As is a realistic goal for some,
not for others. Buying a car in two years is possible for some, but not
FYI
Your goals today will
probably be different from
your goals in the next
few years. It is important
to have a plan to review
your goals on a regular
basis.