Goals are more effective when they are SMART goals. SMART goals are specific, measurable, attainable, ... Pay off all cr
Reaching Your Financial Goals & Dreams A WORKBOOK
Find out how to make an actionable plan to achieve your financial goals and dreams based on your cash flows.
STEPS It's nearly impossible to meet your financial goals without a solid plan in place; a plan that stems from having a good grasp on your money situation. The only thing preventing you from getting on the road to achieving your financial goals is you. So get out of your own way and make a plan in these 3 easy steps:
1) Set or revisit your financial goals and dreams 2) Figure out your cash inflows and outflows 3) Make a plan to achieve your goals and dreams based on your cashflow snapshot
STEP 1: SET GOALS Make a list of what you want to achieve in the short-term and longterm and ensure you set impactful goals. Impactful goals are ones that create a relationship of accountability. Goals are more effective when they are SMART goals. SMART goals are specific, measurable, attainable, realistic and time-based. Here are some ideas to get you started: 1. Save up $2500 in a savings account for a trip to Paris by September 30, 2020 2. Create an emergency fund of $10,000 in a savings account by December 31, 2020 3. Pay off all credit card debt by April 15, 2020 4. Invest $1000 per month until my 65th birthday to create a retirement fund
STEP 1: SET GOALS Now it's your turn! Write down your financial goals and dreams in the space provided below:
SHORT-TERM
LONG-TERM
STEP 2: LIST CASHFLOWS Gather your financial information. Start with your fixed inflows and outflows then list your variable inflows and outflows. Your fixed expenses will help accurately predict how much you will need to budget for whereas your variable expenses can act as a guide for your behaviours to help predict your future expenses.
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CASH INFLOWS
Gather pay stubs, investing statements, bank statements, or any other record of how much income you collect each month. Remember to subtract deductions for taxes, health benefit contributions, EI and others to get a net income (take-home) figure. Include any extra sources of income from hobbies or rental properties.
CASH OUTFLOWS Collect your most recent receipts, bills, credit card statements, etc. to know what you spend in a month on expenses and recurring debt payments such as a mortgage, credit card debt, and car loans.
STEP 2: LIST CASHFLOWS Now it's your turn! Write down your cash inflows and cash outflows in the space provided below:
CASH INFLOWS Income Source
Amount
CASH OUTFLOWS Expense
Total Total Cash Inflow
Amount
Total Total Cash Outflow
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=
Cash Short/Extra
STEP 3: MAKE A PLAN Make a plan to achieve your financial goals based on your budget. Take a look at what your snapshot is telling you; what types of actions you can take to modify your behavior to reach your goals? Are you spending money where you don’t need to? Do you need to set up failsafes to help you follow through on your goals? Could you be a more efficient and effective spender and saver?
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Set a specific dollar amount needed for the goal.
Set a deadline to achieve the goal by.
Calculate how much money per month is needed to accumulate the dollar amount by the goal deadline. Look for ways to find that money by cutting out unnecessary or unimportant expenses such as cable bills, magazine subscriptions or parking. You can also look for ways to increase your income. Set up an automatic savings plan to a separate account. This is like a bill payment but the money gets saved without you thinking about it. This is a great failsafe to keep you disciplined.
STEP 3: MAKE A PLAN Set sub-goals to form a plan! Once you know what your overall goals are, you can create sub-goals to form a plan. Breaking down something that may seem too large to be achievable will help keep you accountable and motivated to achieve your larger goal. Here is an example of how you can create sub-goals to support your overall goal:
Save $2500 in a savings account for a trip to Paris by September 30, 2019
Only spend $4 on coffee per week during 2018
Set up an automatic transfer of 5% of every paycheque during 2018
Carpool to work with Jane at least 2 times per week and split the parking cost during 2018
STEP 3: MAKE A PLAN Now it's your turn! Write down your goals and sub-goals in the space provided below:
MAIN GOAL:
SUB-GOAL 1
SUB-GOAL 2
SUB-GOAL 3
Now that you’ve set a goal, reviewed cash flow and formalized a plan to achieve your goal; the only thing left is to achieve it! This requires simply executing on your plan. Think how good you will feel when you accomplish what you set out to do.
