Once you know the ins and outs of your household finances it’s time to decide where you’d like to go, make a map, put gas in the car and get on the road.

GOALS: Having a destination in mind may not be how everyone likes to travel but without specific goals, the probability of achieving them is diminished. So few of us have sufficient resources to achieve objectives without a thought to where the money is going to come from. Whether it be an exotic trip, debt repayment, a new car, a first home, an emergency fund, retirement or education, it takes some time to accumulate the funds for these things.

PLANNING: Once you’ve determined what you want (choose your top three goals), the next step is to do some research on how much each will cost and how long you have until you need the money. Have you got room to start contributing to each goal now (is your income larger than your expenses)?

ACTION: What will you do to make your plan a reality? If you don’t have enough to start putting away for your first home now, then where do you start? Do you have enough income to set up a monthly savings transfer into a separate account? Are there expenses that you have that can reduce? Will you repay a loan soon?

REVIEW: Turning the dream into reality means checking in once and awhile to see how you’re doing. If things aren’t happening according to plan then ask yourself why not. Take a look at the numbers. If you are making tracks towards your goals, give yourself a pat on the back.

The next post will touch on the checklist…how do you know if you’ve covered all your financial bases?