How to Prioritize Your Financial Goals

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By Rio Ann Hessler
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Financial goals

Most of us have an endless list of financial goals. Retirement, credit card debt reduction, college, house; money, these are only part of the long list of wishes. It can become so intimidating that we don’t know what to do, so we don’t act on our goals. This article prioritizes the larger financial goals in anyone’s life.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

some money

Step 1

Financial goals

Prioritize your financial goals by writing down your goals and a plan of action. When your goals are written you can move on to prepare a plan that may be achieved. Try to establish due dates on your financial plan.
Step 2

Financial goals

Prioritize your financial goals by saving for retirement. This should be the first item in the financial plan. Retirement may be years away, but it costs are much higher than for any other expenses. Furthermore, retirement can last from 30 to 40 years making it longer than a mortgage or a car loan.

Participate in your employer’s 401 K plan and try to contribute the maximum. If you are self employed look into setting up your own retirement plan or IRAs account, this can be done at a Mutual Fund company or a brokerage house.
Step 3

Financial goals

Prioritize your financial goals by eliminating or reducing credit card debts. This type of debt usually carries double digit interest costs, making it very expensive. Carrying debt will limit you in investing for the future, mainly your retirement. If you are in really bad shape look for debt counseling and use counseling services.
Step 4

Financial goals

Prioritize your financial goals by establishing a College Fund. There are different avenues to do this. One way is to invest in an Education Savings Plans or 529 plans. These plans are very popular and offer tax breaks on the earnings. The Investment in these plans may be done at very moderate amounts, so start early. This can be done at a Mutual Fund or a Broker house.

Students loans and scholarships are another option. The loans normally carry interest rates that are lower than market rates and normally scholarships don't need to be repaid. Don’t forget to take vacations.