Money problems affect us all, no matter how much or how little we have. That's why financial planning is so important. It's hard to think about the future when pay day is a week away and the checkbook is empty. You can make your money stretch further if you learn to manage it carefully.

Financial Planning

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You can make your money stretch if you:
• Know what you want to do with your money.
• Know where your money goes.
• Know how to keep your money longer.
• Plan your spending in advance.
• Know and keep within your credit limits

Future Plans for your Money - It is necessary to take a look into the future and see where you want to be before you can get there. Families set their financial goals based on their values. One family's goals will be different from another family's. Here's are some examples of goals:

Own my own home

Payoff all debts

College for my children

Take a family vacation

Think About Your Goals - A listing of goals could go on and on. It just depends on your family's needs, wants and desires. Included with this lesson is a goal worksheet. It will help you plan your family goals. Now is the time to think about what you want. Take time to write down your goals, so you can see what is really important to you, your family and what you really do want for the future. Financial goals are the specific things you want to do with your money within a certain period of time. They will give you a purpose for the way you will spend your money today and tomorrow.

You should plan for goals that are:


• Short Term Goals: Things that can be done soon. Perhaps in a week, or a few months, but no longer than a year. Ex: Buy new clothes, save for a vacation.
• Intermediate Term Goals: Things that can be accomplished in 1-5 years. Example: Buy a new car, payoff debts.
• Long Term Goals: Things you would hope to achieve in 5-10 years. Ex: Buy a house, put children through college.

As you set your financial goals, remember these three basic ideas:

Set realistic goals - Ones that are set too high may frustrate you and cause you to abandon your plans. Maybe it is impossible to save $ 100 a month right now. Why not try for $25 ?

Be specific: - State your objectives concisely. If goals are vague, they may never be met by you. Be flexible. Plans may require adjustments as your income and life cycle change. Don't be so rigid that you have to start over with an entirely new plan. For example: An unexpected expense comes up. You can't save the entire $100 that month. Don't let that get you off track. Continue to set aside something towards your goal no matter how little it might be.