Setting a financial goal is the first step in having a clear vision of your financial future. Goals give you direction in life. They help focus your energy and motivate your behavior. Reaching goals usually involves determination and adjustment. People often have problems with setting goals because they confuse needs and wants .
Few people can satisfy all their needs and all their wants.
Other goals may be long-range and take several years to reach, such as saving for a child's education. A goal you set for the next year or two falls into an intermediate range, such as saving for next year's vacation. One way to approach a goal is to think of yourself as climbing stairs. All house holds share the same goals such as enough food, comfortable housing, and financial security. But other goals change as household members age and move through the life cycle.