Many people don't have an overall plan for the money they earn. They confuse needs and wants, which can result in few savings and increasing debts. University of Wisconsin-Extension's Money 2000 and Beyond personal finance program is designed to help Wisconsin residents take control of their finances by providing information on how to set goals, develop a budget, pay off debts, save money and invest for the future.
Some goals are short-term, like buying a new car battery.
Intermediate goals might include putting away money for a vacation or for holiday gifts. Other goals may be long-range and take several years to reach, like saving for a child's education or for your retirement. A written financial plan help people prioritize, and can actually be an effective first step to begin saving, Boelter says. Goals within your financial plan may include paying down credit card debt, paying off a mortgage early, saving for a new car, or putting aside money in an emergency fund. Another important first step is to make a record for current expenditures.