It’s easy to say but how do you do it? Short term versus long term objectives, money for this but not enough for that too…these are common questions and challenges.

The first step is to identify your goals. What do you want and what will it cost? When do you want it? It’s easiest if you select goals that align with your values.

The next step is to do a little math. Group your objectives into short, medium and long term categories and break down the cost of each into annual/monthly targets. For example:

• Short Term Goal – A trip to Hawaii may cost $5,000 and you want to go in 6 months. Calculate a monthly savings target of $500.
• Long Term Goal – You plan to buy a replacement vehicle in 2 years. You estimate you’ll need $15,000 to complete the upgrade. $15,000/24 months is $625 per month.

Do you have other objectives in each category? Having trouble deciding how to prioritize and what you can afford?

1. Assign Priorities: Within each time category decide which item you need or want the most. If you’re finding it difficult to decide, assess 2 items at a time and decide which one you want more than the other, then evaluate 2 more and so on until you have a clear winner and runners up.
2. Affordability: Take a look at your budget. How much do you have each month to put towards your goals? One of each of the short, medium and long term goals? More than one? If the money doesn’t stretch to all or too few. Decide whether there’s anything you choose to change with respect to your current lifestyle to be able to afford these items. Compromise with a small amount towards your objectives rather than none at all.

If this seems like a lot to do at once, try breaking the process into a couple steps.