Financial Goals : An Essential Part Of Financial Success Essay examples

1562 Words Dec 14th, 2016 7 Pages
A personal financial plan is an essential part of financial success. This plan must include financial goals for every stage of life. Without financial goals to work towards, money will be squandered away frivolously. These financial goals will affect every aspect of financial decisions that are made. Once these goals have been set, it is important to revisit these goals on a yearly basis and make adjustments if necessary. The first financial goals to set are short-term goals. According to Garman (2015), financial goals need to be specific and need to have target dates for achieving those goals (Garman, 2015, p. 68). The biggest financial tool for creating my personal goals is the textbook, Personal Finance. The book clearly maps out areas to examine when setting financial goals, making the process much less daunting. When looking at my personal financial plan, I have short-term goals set in many areas. In terms of debt management, I plan to continue making loan and credit card payments on time and paying extra on these bills when possible. As of this moment, there are no major purchases looming, so I do not have a plan to set aside money for these during the next year. When planning for medical costs, my family contributes to a flexible spending account through my husband’s employer. This should be enough to cover any out of pocket medical expenses during the year. When examining the role of risk in a financial plan, one must not forget to evaluate property and…

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