In the previous task I have defined my 5 main values . Knowing these values allows me identify the personal meaning of success and satisfaction to understand how to focus on the goals.

From defining my values, I will now move to identifying my long term and short term goals which is my task today. Let me just share you a little bit of my opinion why I need to define and write down my goals and what needs to be considered in goal setting.

A GOAL is a desired end result to which a commitment is made. It is important to set goal to be motivated toward task completion. For example, 13 years from now I would like to have enough cash to sustain college education expenses of my son. With this in mind, I will then set a goal to start saving a portion of my income regularly starting next year so that after 12 years I will have the enough money to support my son education. If I will not save as nearly as next year, I may encounter shortage in funding my son’s college education which will eventually resulted to other financial problems that might ruin my personal finance plan.

What are the benefits of having goal in fixing your finance:

1. Clear Expectations. Clearly understand expectations and do not waste valuable time on misdirected efforts.
2. Personal Satisfaction. A sense of pride can translate into higher levels of motivation and continued achievement
3. Boost self-confidence. Generates higher level of motivation and boosts in self confidence. When a goal is achieved, one is likely to accept more challenging goals and perform at higher levels.

Goal has a known characteristics which can be easily remembered by simply being S-M-A-R-T. Understanding the characteristics of effective goals ensures that our goals are focussed and appropriate for our needs. They are outlined in the SMART acronym.

1. Specific - It is important to create specific goals. Both the wording of the goal and the expected outcome should be clear and concise. Keep in mind that effective goals do not identify the processes required to complete them, but only the expected and desired result
2. Measurable - The goals should also be measurable. Determine hard data, such as profit numbers, cost, and deadlines, that can be used to show the goal achievement. Measurable goals help demonstrate the effort and value to yourself.
3. Achievable - While the goals should motivate us by creating a challenging situation, they should also be attainable. Unattainable goals rarely motivate individuals because there is no reward with a goal that goes unaccomplished
4. Relevant - Make sure that goals do not contradict personal values
5. Time-based - Deadlines are critical for ensuring that all parties involved with a goal understand what must be done and when. This will also provide a way to evaluate the progress toward goal achievement

Alright, so what are my goals? Below is the list of my long term goals and short term goals. The long term goals were derived by thinking what I want to be or to possess 25 years from now. On the other hand, short term goals are the ones I want to accomplished 1 year from now.

My Long Term Goals:

After 25 years I am going to…

• harvest the fruits of my 500 Mango Tree Plantation
• own house and lot
• live up with the passive income of my investments
• complete two insurance plan (for me and my wife)
• have enough wealth to retire happily & financially free

My Short Term Goals:

After one year I must have…

• paid off my debts - mastercard (KD 1,197 or $4,428.9 Mastercard & KD 1,500 or $5,550 CFC)
• stashed at least 4 months of basic expenses as Emergency Fund
• equity mutual fund account of atleast $2500
• earning atleast $500 per month online
• started saving for the educational account of my son.

Follow me to my next task. Creating a Plan for Each Goal.