Many financial experts say that you should set financial goals by following these basic four steps:

1. Identify and write down your financial goals.
2. Sort your financial goal down into time periods: short-term (less than 1 year), medium-term (1 to 3 years) and long-term (5 years or more).
3. Educate yourself on how to reach the goals.
4. Evaluate your progress.

I find that these basic steps aren’t enough for most people to reach their financial goals as they leave out some important areas I think go a long way in making financial goals attainable. Here is my list of basics to set financial goals:

1. Identify and write down your financial goals.
2. Set a defined time limit and defined money amount for each goal.
3. Write a detailed goal plan with each step needed to be completed in order for you to reach the financial goal you have.
4. Set a defined time limit for each step needed to complete your financial goal.
5. Place you goals in a spot where you see them every single day.
6. Review your progress on a weekly to monthly basis.
7. Tell everyone you know what your goals are.

I think the most important aspect that many financial experts leave out is actually sitting down and forming a step by step plan on how you are going to achieve your financial goals. While these plans may need to be modified during the pursuit of the goal, without them you are steering blind in your attempt to reach them.

It’s much like wanting to get someplace clear across the country. If you start heading in the general direction, there is a chance that you’ll eventually reach where you want to go, but if you have a map of how to get there, you’re much more likely to get there and in a lot less time. The more detailed the map, the better the chance of reaching your destination in the least amount of time. The same is true with a step by step “map” to your financial goals.

For more details on my step by step approach, you can read, Setting Financial Goals