Financial Planning - Prioritizing Goals [Finance For Engineers Series]

Never give up on a dream just because of the time it will take to accomplish. Time will pass anyway. - Earl Nightingale





Goals can be prioritized according to necessity and desirability. Of course goals based on necessity will rank before desirability and you would first try to accomplish them, and later if time and resources permitting you could look into the possibility of fulfilling goals based on desirability. Ex: You may want to educate your children and take your family for a vacation in Havai. The importance of prioritizing goals is that it will give you a realistic view of the actual scenario. Also it is better to have a time frame for each goal. You can further prioritize goals according to time, ex: short term goals (within 12 months), medium term goals ( beyond 12 months but before 36 months) and long term goals (beyond 36 months). The importance of prioritizing is that it will ensure that you have a strategy in place to meet your goals in a time bound action plan.