Here’s a real example for one of my financial goals.
Goal #1: Eliminate car loan debt
I want to eliminate my car loan debt by December 31, 2010.
Achieving this goal will make me debt-free!
To achieve this goal, I will:
a. Save 1 EMI payment (i.e. Rs X) and an additional amount of Rs Y each month from April, 2010 to November, 2010
b. Save Rs Z (outstanding principal + pre-clousre penalty – (8 x Y)) in December, 2010
Once the EMI has been deducted on December 01, 2010, I will pre-close the outstanding loan balance (Target: December 14, 2010).
It’s Specific, has a Justification, and details concrete Steps. In short, it’s Actionable.
What do you think? How do you set your financial goals?
Tip Tuesdays is my initiative to share practical personal finance tips â€” every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.