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What are goals? Each person should understand what a “goal” means, and understand that they differ from one person to another. Goals: are what the person wants to achieve whether on a personal, physical or family level. There are two types of goals: Short-term goals: Immediate goals that can be achieved within a short period of time. Long-term goals: The ones that need a long period of time to be achieved. Long-term goals are not easy to achieve as the motivation may fade over time, and other circumstances may change. Many people may find it hard to commit to one certain thing for one year and even harder for years. For this reason, long-term goals are difficult to achieve.   The following are some ways to achieve financial long-term goals: Put your long-term goals in your list of tasks The financial long-term goals are usually all about projects rather than tasks. The fact is that without listing your projects and tasks, you most probably can’t achieve your long-term goals. There is something about seeing your long-term goals on a paper (or on a screen) that make them real. The process of listing is a type of commitment; so try, write and revise your long-term financial goals on a regular basis. Do not ignore your long-term goals It’s not enough to write down your long-term financial goals, but it also should be available to your eyes. An idea to consider is to write goals on a board for you to frequently see them in front of you One important thing is you need to find a link between your short-term goals and your long-term ones. If you only see your immediate short-term goals, you will tend to focus on those goals rather than focusing on your long-term goals. Assign days for long-term goals You must assign a day of the week for specific goals. For example, assigning a certain day is to manage financial affairs, and to brainstorm about how to improve your future. This day does not need to be assigned for financial topics, which can be used to achieve other long-term goals. Set your long-term priorities correctly When it comes to long-term financial goals, you need to set your priorities correctly Some priority goals shouldn’t take more than a month, such as budget setting, and cost reduction. Priorities can be arranged as the following: 1. Building contingency savings. 2. Getting rid of debts. 3. Providing university education to your children. 4. Starting retirement investment. One of the important priorities is investing for retirement Investing for retirement is one of the most important long-term goals; at this point the monthly income will be low or non-existent. The retirement level is the financial and physical break after long years of work. To achieve all your goals you should always focus on your motivation behind your goals and then you will find yourself systematically seeking to reach your goals.  

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Saving Saving is to allocate part of your income regardless of the source, after deducting all the monthly expenses. Like most people, you’re most likely to seek financial security and stability, and one of the best ways to achieve this is to save as much money as possible. This raises the following question: How much should you save each month? Should you save 100 JOD per month? Or should you consider a percentage? It depends on your status, there is no rule, yet there are a number of tips to help you save money and accomplish your financial goals. Set a goal when you can set the amount of money that you want to save First, set your goal for savings, then you determine the amount you should save. Depending on your current status, your goals may include savings to buy a home, going on a vacation or university education. Saving money is not only related to a retirement account or contingency savings Your savings helps you pay for things that are important in life, but your short-term and long-term goals can have an impact on how much each month you provide; so start thinking about things that are important to you today. Set a percentage of your income per month such as saving around 20% of your money. If you can control yourself when it comes to budgeting, you may need to save a percentage of your income instead of a certain amount. One of the most common ways to do this is to follow the 50/30/20 rule and divide your income to three different areas. The largest part: 50% for your daily living needs including lodging and food. An amount of 30% can be used for estimated spending, which may include shopping or outings with friends. The remaining 20% goes to cover your financial needs, which includes paying debts. This division may seem ideal for some people not for everyone. For example, if you are still a fresh graduate, your budget might be tight. This means that saving 20% may not be easy. Instead, you can save a part of your income to suit your budget. Invest for your future The earliest you start saving for your retirement, the more money you’ll get to enjoy when it’s time to retire. You should start saving money for your retirement as soon as possible. Pay for yourself first It is not that important if you followed 50/30/20 rule or saved a specific amount of money. You have to pay for yourself first. This means that before you do anything else; make sure you allocate money to the savings. If you follow these tips, you will be on the right track to start saving on a monthly basis. Are you ready?

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Short term goals are characterized by a short time to achieve compared to other types of goals When you create your financial plan, you have to set your goal either short-term, medium-term or long-term. Setting a plan to support your goals provides you with a guarantee for a good financial future. How you can determine short-term goals and build a supportive financial plan? Identify your financial goals Figure out what you want to achieve most in your life. Any money you earn can easily be spent instead of being saved or earmarked for an important goal. Estimate the amount of money you’ll need to accumulate to reach each goal. Prioritize each goal How important is each goal? Should your first priority be to save and invest for your retirement? This means that before anything else, a percentage of your salary is invested for retirement plan. Only after that occurs does additional money get earmarked for other financial goals. Establish a time horizon for each short-term goal The time period for short-term goals is from one to two year. Assess your finances and eliminate credit card debt Take a good look at your financial situation, including credit card debt, student loans, car loans, mortgages, etc. Before you start investing and saving for your goals, you might consider eliminating credit card debt that carries very high interest rates. Once all credit card payments are made, you can then take that same amount of money and invest it. Set up a rainy day fund Once you pay off your credit card debt, your next short-term goal is to build up a rainy-day fund. This will help you build a cushion for unforeseen expenses like car repairs or replacement of a large household appliance. Also, try not to put large essential expenses on a credit card, because that will just put you back to square one. Adjust your spending habits Your next short-term goal is improving your savings by cutting back on unwarranted spending. Cut back on eating out and restaurants or perhaps try renting movies instead of going to the theater. Think of other expenses that you can eliminate, such as bottled water, magazines at the newsstand, or your unused landline phone at home. If you make small changes in your spending habits now, you’ll have more money to invest. Choose an investment advisor Ask for help in setting up your financial plan. Experienced investment advisors will not only help you identify your goals and assess your financial situation, they’ll also help pick investments that are best suited to your goals. The important thing is to simply get started and determine your short-term goals. When you do this, you’ll be able to move on to achieve medium-term and long-term goals.

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