Tip Tuesdays: How to Set a Financial Goal?

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 — 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.

6 thoughts on “Tip Tuesdays: How to Set a Financial Goal?

  1. its a no-brainers action plan. Nothing great in the plan as any ramiah or thimmappa with little WILL to get rid of debts can chart out such plans. sir, pls write abt the challenges to implement the plan or some baniya ways of investment thru which you can get your car free of cost over a period of time.

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