2torial #0564:
Learn2 Establish a Personal Budget (continued)

Set your goals

Make a list of your financial goals, then divide them into three categories:

Short-term goals. These cover things like getting out of debt or paying for an upcoming vacation. They're useful because they let you see results within a matter of months.

Medium-term goals. These take a little longer, but really need planning to happen. They include things like college tuition for your children or extravagant vacations.

Long-term goals. These include retirement and estate plans. Because these goals require the most money, they also require the most time and planning.

Calculate how much each goal is likely to cost and estimate a time frame for when you'd like to accomplish it. Then prioritize them.