FIN 502 Chapter Notes - Chapter 3: W. M. Keck Observatory, Goal Setting, Financial Plan
Document Summary
Individuals often come up with a list of desires too vague and there are no deadlines for their completion. Financial goal 2 attributes: goals outcome can be measured precisely in dollars, there is a deadline for completion, e. g. I want to be rich" i want to have a million in 10 years". How to set financial goals: brainstorm write down all desires and goals in your financial affairs. Goals short term and long term: estimate each item carefully and convert every desire into a financial goal. End list of goals only expressed in dollar amounts and a time for. Majority of people never achieve their goals: they fail to plan, even if people do plan, they do not take action. Financial planning process- system of setting goals, devising action plans, and monitoring progress: goal setting. Reach goal invest money in right investment: action plan. Cannot find an investment that can generate such a high return.
