Earlier in the week, I discussed steps one and two for achieving financial success. The third step is to develop financial objectives. Objectives directly tie into the goals you set and a rule of thumb for setting effective objectives is to make them S.M.A.R.T. This stands for Specific, Measurable, Achievable, Realistic and Time-Bound. I’ve created a worksheet to help you map out your plan for financial success. The template can be found here or on the Financial Tools and Calculators page.

After you’ve listed objectives for each goal, determine if each one is a want or a need. If you’re having trouble deciding whether something is a want or a need then ask yourself two questions. Is it absolutely necessary to accomplish your financial mission and it is required by law (i.e. maintaining a minimum of liability insurance on your vehicle). If not, then that objective can be classified as a want.

Once you’ve identified which objectives are needs and which are wants, evaluate the relative importance of the wants. Use a ten-point scale with one assigned to objectives that are ‘nice to haves’ but you could do without.  Assign ten to those objectives that have the most importance, those that you have a strong desire for.  Give the worksheet a try and tune in tomorrow for the next step - developing strategies.