Foundations of Personal Finance, 9th Edition Page 10 (24 of 718)

10 Chapter 1 Personal Finance: An Overview
for everyone. The important thing is not to let the impossible stand in
the way of the possible. Make an effort to set realistic goals for yourself.
Vg‘s‘qdrnldnexntqonrrhakdfn‘kr‘ssgdoqdrdmsshldVghbg‘qd
lnrshlonqs‘mssnxnt
¶ Can you break big goals into smaller pieces? Many goals, especially
medium- and long-term goals, can be challenging. You can tackle
them by breaking them down into smaller, more-achievable goals. For
dw‘lokd+r‘uhmf#4//enqrtlldqb‘lol‘xrntmchlonrrhakd-Sgdqd
‘qdnmkxehudlnmsgrtmshksgdlnmdxhrctd-Gnvdudq+xntb‘menbtrnm
sgdrl‘kkdqfn‘kner‘uhmf#0//d‘bglnmsgnqdudm#14d‘bgvddj-
¶ Can you measure your progress? Progress toward a goal should be
measurable in dollars, grades, hours, points, or something specific.
Nsgdqvhrd+xntcnmnsjmnvgnvvdkkxnt‘qdcnhmf-Enqdw‘lokd+he
your goal is to get an A or B in a class this semester, you can measure
your progress weekly by tracking your grades for homework, quizzes,
‘mcdw‘lr-Hexntqfn‘khrsnatxrnldsghmf+rtbg‘r‘k‘osnobnlotsdq+
you can measure your progress by the number of dollars you save.
Seeing progress motivates you to continue working hard.
¶ What will the goal cost in time, money, and effort? After thinking it through,
you may decide that some objectives are not worth what it takes to
‘bghdudsgdl-Enqdw‘lokd+hexntv‘mssnrs‘qs‘mdvatrhmdrr+‘b‘qdetk
look at the time and the risks involved might change your mind. At the
same time, potential rewards may keep you focused.
¶ Will you still want the goal by the time you are able to reach it? For instance,
a high school senior may want a scooter for getting to and from school.
If it requires a year or more of savings, the need may vanish by the time
the money is available. The need for a car may become more important.
It pays to set worthwhile, realistic goals. Attaining them can give you
a sense of satisfaction and accomplishment. Working toward unrealistic
goals can cause frustration. Aiming at the impossible can prevent you from
reaching what is possible.
Interdependent and Conflicting Goals
Goals often are interdependent. This means you have to achieve one goal
in order to reach another. For instance, you need to finish high school before
going to college. You need to complete training before starting a career. You
need to complete driver education before getting a driver’s license.
Fn‘kr rnldshldr bnmekhbs vhsg nmd ‘mnsgdq- Enq dw‘lokd+ @kenmrn g‘r
#7//-Gdv‘msrsnatx‘trdcb‘q‘mcs‘jd‘nmd,vddjsqhovhsgghreqhdmcr-
Gd cndr mns g‘ud dmntfg lnmdx enq ansg-@kenmrn ltrs cdbhcd vghbg ne
these conflicting goals he values more.
Go Green
To be green, or ecofriendly, means to respect the environment. You can
be green by using products that do not contribute to polluting air, water, or
land. Do your share to reduce pollution, conserve energy, and conserve
resources.

Previous Page Next Page

Resources and Downloads

Attachments

Extracted Text (may have errors)

10 Chapter 1 Personal Finance: An Overview
for everyone. The important thing is not to let the impossible stand in
the way of the possible. Make an effort to set realistic goals for yourself.
Vg‘s‘qdrnldnexntqonrrhakdfn‘kr‘ssgdoqdrdmsshldVghbg‘qd
lnrshlonqs‘mssnxnt
¶ Can you break big goals into smaller pieces? Many goals, especially
medium- and long-term goals, can be challenging. You can tackle
them by breaking them down into smaller, more-achievable goals. For
dw‘lokd+r‘uhmf#4//enqrtlldqb‘lol‘xrntmchlonrrhakd-Sgdqd
‘qdnmkxehudlnmsgrtmshksgdlnmdxhrctd-Gnvdudq+xntb‘menbtrnm
sgdrl‘kkdqfn‘kner‘uhmf#0//d‘bglnmsgnqdudm#14d‘bgvddj-
¶ Can you measure your progress? Progress toward a goal should be
measurable in dollars, grades, hours, points, or something specific.
Nsgdqvhrd+xntcnmnsjmnvgnvvdkkxnt‘qdcnhmf-Enqdw‘lokd+he
your goal is to get an A or B in a class this semester, you can measure
your progress weekly by tracking your grades for homework, quizzes,
‘mcdw‘lr-Hexntqfn‘khrsnatxrnldsghmf+rtbg‘r‘k‘osnobnlotsdq+
you can measure your progress by the number of dollars you save.
Seeing progress motivates you to continue working hard.
¶ What will the goal cost in time, money, and effort? After thinking it through,
you may decide that some objectives are not worth what it takes to
‘bghdudsgdl-Enqdw‘lokd+hexntv‘mssnrs‘qs‘mdvatrhmdrr+‘b‘qdetk
look at the time and the risks involved might change your mind. At the
same time, potential rewards may keep you focused.
¶ Will you still want the goal by the time you are able to reach it? For instance,
a high school senior may want a scooter for getting to and from school.
If it requires a year or more of savings, the need may vanish by the time
the money is available. The need for a car may become more important.
It pays to set worthwhile, realistic goals. Attaining them can give you
a sense of satisfaction and accomplishment. Working toward unrealistic
goals can cause frustration. Aiming at the impossible can prevent you from
reaching what is possible.
Interdependent and Conflicting Goals
Goals often are interdependent. This means you have to achieve one goal
in order to reach another. For instance, you need to finish high school before
going to college. You need to complete training before starting a career. You
need to complete driver education before getting a driver’s license.
Fn‘kr rnldshldr bnmekhbs vhsg nmd ‘mnsgdq- Enq dw‘lokd+ @kenmrn g‘r
#7//-Gdv‘msrsnatx‘trdcb‘q‘mcs‘jd‘nmd,vddjsqhovhsgghreqhdmcr-
Gd cndr mns g‘ud dmntfg lnmdx enq ansg-@kenmrn ltrs cdbhcd vghbg ne
these conflicting goals he values more.
Go Green
To be green, or ecofriendly, means to respect the environment. You can
be green by using products that do not contribute to polluting air, water, or
land. Do your share to reduce pollution, conserve energy, and conserve
resources.

Help

Section 1.1 Personal Finance Basics 11
Judy also has conflicting goals. She wants to be on the girls’ basketball
team, which practices each day after school. At the same time, she wants to
keep her part-time job after school. Judy cannot reach both her goals. She
must decide which one is more important to her.
Life is full of conflicting goals and difficult choices. When your goals
conflict, your priorities and values will help you choose wisely.
Priorities
A priority is a value or goal that is given more importance than other
values and goals. You set your priorities by ranking goals in their order of
importance. Identify the things that are important to you and rank each item
from most to least important. This helps you direct your time, energy, and
money to whatever you most want to achieve—your priorities.
Whenever you decide one thing is more important than another, you are
making a priority judgment. If you think it is important to enjoy your work,
you may choose a job you like rather than a higher-paying job that does not
appeal to you. When you think about your own priorities, what would you
ots‘ssgdsnonexntqkhrs
Some values and goals are related to money and financial matters. These
things can have a major impact on the choices you make in the marketplace
and in your financial life.
Standards of Quality and Excellence
A standard is an established measure of quality, value, or quantity. The
word standard is used in many ways. Electrical products must meet certain
r‘edsxrs‘mc‘qcradenqdsgdxqdbdhud‘rd‘kne‘ooqnu‘k-Cnbsnqr‘mck‘vxdqr
must meet certain professional standards before they can practice.
You set standards for the way you want to live, what you want to do, and
the goods and services you want to buy. These standards depend on your
values and goals. They often vary from situation to situation. For instance, if a
big, perfect picture is a top priority when you buy a television, you may only
settle for the best. Your standards for a TV would be high. If you just want a
small TV that fits the corner of a workspace, your standards would call for
something smaller and less pricey. Think about situations in which you look
for the best and other situations when you just want good enough.
Vg‘s cdfqdd ne pt‘khsx cn xnt rddj ‘r xnt vnqj snv‘qc xntq fn‘kr
Cnxntrsqhudenq@r‘mcArhmrbgnnk+nq‘qdxntr‘shrehdcvhsgBrCnxnt
practice a piece of music until you can play it without any mistakes, or are you
r‘shrehdcok‘xhmfhsqd‘rnm‘akxvdkkSgd‘mrvdqrsnsgdrdptdrshnmrb‘mqdud‘k
some of your standards. A clear understanding of your standards in different
situations will help you make financial decisions that are right for you.
Resources
Resources are tools you can use to reach goals. There are two types of
resources—human and nonhuman resources.
Gtl‘m qdrntqbdr ‘qd hmsdqm‘k- Sgdx hmbktcd dmdqfx+ jmnvkdcfd+
dwodqhdmbd+rjhkkr+s‘kdmsr+lnshu‘shnm+hl‘fhm‘shnm+‘mccdsdqlhm‘shnm-Sgdrd
Quality Control
Technicians
Quality control
technicians ensure that
manufactured products
or services adhere to a
defined set of standards.
They follow plans or
procedures to improve
production or service.

Previous Page Next Page

Resources and Downloads

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
snu‘ktdr-Enqdw‘lokd+hegd‘ksg‘mcehsmdrrq‘mjghfgnmxntqkhrsneu‘ktdr+
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
o‘xenqinasq‘hmhmfnqghfgdqdctb‘shnm-Xntlhfgs‘krnrodmcdwsq‘gntqrnm
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
rl‘qs+onotk‘q+dmsdqs‘hmhmf+qdkh‘akd+qdk‘wdc+nqbnlodshshud-Sghrfqntone
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
sg‘sxntv‘mssnqd‘bgsnc‘xnqmdwsvddjnqhmsvnnqsgqddlnmsgr-Enq
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.

Previous Page Next Page

Page 2Unit 1 Personal Financial Literacy click to expand contents

Page 70Unit 2 Managing Your Finances click to expand contents

Page 290Unit 3 Managing Your Spending click to expand contents

Page 468Unit 4 Planning Your Future click to expand contents

Page 556Unit 5 Economic Systems click to expand contents

Resources and Downloads

Attachments

Extracted Text (may have errors)

Help

loading

Resources and Downloads

Resources and Downloads