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#1 Define your goals

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Lesson time
4 min.

In this lesson you will learn 💸

  • What financial planning is all about
     
  • How you can set achievable and realistic goals for your finances
     

Watch the short video to get started:

Structure your goals

To plan your money and to make it easy to define what you want to invest, think about your goals in three different time-horizons:

Financial goals in three time brackets

How to set realistic goals?

Don't worry, we will look at the amounts you might need in lesson three of this chapter 😉

The easiest way to make sure that your financial goals are realistic is to link them to your life stage. There are three different categories to consider for this:

  1. Short-term goals (1-3 years): These will define how much money you need available in the short term (liquid). They could include finding a new job, paying off credit cards, or building up an emergency fund.
     
  2. Medium-term goals (4-10 years): These could include taking a career break, starting a business, or saving for a new car.
     
  3. Long-term goals (10+ years): These could include early retirement, buying real estate, or sending your children to university.

It's time for a quiz 🎯

Which one of is not a short-term goal?

🤨 Unfortunately that's not correct

Unless you are looking at the summer holiday 5 years from now, otherwise it is a short-term goal.

🤨 Unfortunately that's not correct

Unless it is a super-fancy timeless piece of course:-) Usually a new dress is a shor-term goal.

👏 Correct!

Saving for a house usually takes some time, so it is not a short-term goal.

Your action 📝

Take a piece of paper and note down your short-, mid-, and long-term goals and any special goals you might have.

No need for perfection here, simply put down what comes to mind. We'll put it all together in lesson four 😊

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