Dr. Debra Sherrill
Central Piedmont Community College
1

Know the difference between a goal and a dream.

Define short-term goals and long-term goals.

Recognize important steps for goal success.

Understand the benefits of goals.
2
I.
Introduction to financial terms
II.
Defining goals
III.
Steps for achieving financial goals
IV.
Benefits of financial goals
3

Be alert

Be knowledgeable

Be prepared for hazards

Have a plan and an alternative route

Don’t hesitate to ask for directions or assistance from
competent advisors-avoid scams!
SET FINANCIAL GOALS!
4
Introduction to
Financial Terms
5


Unless you have unlimited resources, when you spend money
on something, you give up the opportunity to do something
else with that money.
Before buying any non-essential item, calculate the
opportunity cost of that item.
Ask yourself:
“Is there another, more advantageous
use of that money?”
6


The number of years it takes to double
your money =
72 / rate of return.
To determine your rate of return =
72 / number of years to
double your money.
7
Debt Ratio:
Housing Debt + Consumer Debt
____________________________
Gross Monthly Income
X 100 =%
Anything over 45% is risky!
8
Defining
Goals
9

Where are you today?

Where do you want to be?
10

Personal goals

Educational goals

Professional (career) goals

Financial goals

Business goals

Political/social goals
11
To be successful, a
plan must be based on
reality and goals,
not dreams!
12
Dream:
A vision that is possible but
highly improbable.
Examples:
 Winning the lottery.
 Inheriting a very large sum
of money.
 Marrying a very wealthy
individual.
Dream
Goal:
An objective for one’s efforts.
Examples:
 Buying a house, a boat, or
new car.
 Getting out of debt.
 Starting your own business.
 Achieving financial security.
Goal
13
Steps
for Achieving
Financial Goals
14
List Short-Term Goals:

1.
1.
2.
2.
3.
List Long-Term Goals:
3.
4.
4.
Goals you want to accomplish
within 12-24 months.
Goals you want to accomplish
beyond 24 months
15
A.
Money
B.
Education / knowledge
C.
Experience
D.
Time
E.
Determination
F.
All of the above
16
Gross income:
$______________
-Est. for federal taxes:
$______________
-Est. for FICA/Med (7.65%):
$______________
-Est. for state taxes:
$______________
-Other deductions:
$ ______________
=Net income:
$______________
- Total consumer debts:
$______________
=Residual income:
$______________
- Other expenses:
$ ______________
(utilities, food, entertainment, restaurants, other cash items)
= What’s left for goals:
$_________
17
Income:
Name /Category
Expenses:
Amount $
_________________
__________
_________________
__________
__________________
__________
__________________
__________
Incoming $
Name/ Category
Amount $
_________________
__________
__________________
__________
__________________
__________
__________________
__________
Outgoing $
18
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
1
____ $______
____ $______
____ $______
2
____ $______
____ $______
____ $______
3
____ $______
____ $______
____ $______
4
____ $______
____ $______
____ $______
5
____ $______
____ $______
____ $______
6
____ $_____
____ $_____
____ $_____
7
____ $_____
____ $_____
____ $_____
8
____ $_____
____ $_____
____ $_____
9
____ $_____
____ $_____
____ $_____
10
____ $_____
____ $_____
____ $_____
11
____ $_____
____ $_____
____ $_____
12
____ $_____
____ $_____
____ $_____
13
____ $_____
____ $_____
____ $_____
14
____ $_____
____ $_____
____ $_____
15
____ $_____
____ $_____
____ $_____
16
____ $_____
____ $_____
____ $_____
17
____ $_____
____ $_____
____ $_____
18
____ $_____
____ $_____
____ $_____
19
____ $_____
____ $_____
____ $_____
20
____ $_____
____ $_____
____ $_____
21
____ $_____
____ $_____
____ $_____
22
____ $_____
____ $_____
____ $_____
23
____ $_____
____ $_____
____ $_____
24
____ $_____
____ $_____
____ $_____
25
____ $_____
____ $_____
____ $_____
26
____ $_____
____ $_____
____ $_____
27
____ $_____
____ $_____
____ $_____
28
____ $_____
____ $_____
____ $_____
29
____ $_____
____ $_____
____ $_____
30
____ $_____
____ $_____
____ $_____
MONTH # 1
19










Pay off debt and keep it under control.
Repair /improve credit history and score.
Plan major purchases carefully and shop for prices and credit.
Spend less on “impulse shopping”.
Lower entertainment costs.
Take your lunch every day.
Lower your grocery bill (compare prices at local stores, use coupons
when beneficial, compare prices in the store).
Get a higher paying or part-time job.
Eliminate unnecessary costs / charges (movie channels, etc.).
Make and commit to a financial success plan.
20

After you prepare a budget, evaluate the plan monthly as you
balance your checking account.

Monitor all situations that affect the budget.

Prepare for future events (savings accounts).

If changes are needed, revise the plan to accommodate these
changes.

Most importantly, record all transactions correctly.
21
The best budgets are those that provide flexibility.
Similar to dieting, “small” rewards reinforce good
financial behavior. Large indulgences can ruin the
best diet or budget.
22
Recognize personal strengths (S) and weaknesses (W).
1. Promote financial strengths such as saving.
2. Identify patterns of spending.
3. Acknowledge financial weaknesses such as shopping.
Recognize opportunities (O) and threats (T).
1. Investigate financial opportunities.
2. Anticipate the unexpected events or threats.
3. Avoid temptations and risks.
4. Protect yourself: social security number, credit and bank
account information, and personal information.
If it sounds too good to be true, it usually is .
23
List Short-Term Goals:

1.
1.
2.
2.
3.
List Long-Term Goals:
3.
4.
4.
Goals you want to accomplish
within 12-24 months.
Goals you want to accomplish
beyond 24 months
24
Stay focused on your long-term goals by living
within your budget NOW!
Strengthen your short-term stability while
supporting your long-term goals.
Make sound financial decisions.
25

There is a BIG difference between needs and wants.
Needs: Requirements for survival
Wants: Desires or wishes


Budget for needs (short-term and long-term).
Plan for wants (long-term).
26
Benefits of
Financial Goals
27


Before you can solve a problem, you have to
know what the problem is!
Thus, you need to know incoming funds
(income) and outgoing funds (expenses).
28



promotes financial awareness.
prepares you for unexpected events that may
be financial threats.
provides a roadmap to achieve financial
success.
29
Knowledge is the “best protection”
against a scam!



Be alert.
Be committed.
Know when and how to act.
Protect your financial future.
30

Know the difference between a goal and a dream.

Define short-term goals and long-term goals.

Recognize important steps for goal success.

Understand the benefits of goals.
31
Dream:
A vision that is possible but
highly improbable.
Examples:
 Winning the lottery.
 Inheriting a very large sum
of money.
 Marrying a very wealthy
individual.
Dream
Goal:
An objective for one’s efforts.
Examples:
 Buying a house, a boat, or
new car.
 Getting out of debt.
 Starting your own business.
 Achieving financial security.
Goal
32
Short-Term Goals:

1.
1.
2.
2.
3.
4.
Goals you want to accomplish
within 12-24 months.
Long-Term Goals:
3.
4.
Goals you want to accomplish
beyond 24 months
33

may identify a problem.

promotes financial awareness.

prepares you for unexpected events that may be financial
threats.

provides a roadmap to achieve financial success.

may reduce the chances of becoming a scam victim.
34

Step #1:
Set financial goals.

Step #2:
Determine what is needed to achieve goals.

Step # 3:
Determine what is available to achieve goals.

Step # 4:
Prepare a daily financial diary.

Step # 5:
Track and analyze income and expenses
35

Step # 6:
Increase the $ for goals.

Step # 7:
Evaluate your plan and budget, monitor each
month, and revise as needed.

Step # 8:
Be frugal but allow flexibility.

Step # 9:
Be aware of SWOT (strengths, weaknesses,
opportunities, and threats).

Step # 10: Revise goals as needed.
36
Any questions
37