Last month we talked about Set Up Short-term Goals. This month we focus on Step 9 - Set Up Long-term Goals. I define long-term goals as something you would like to achieve in the long term, generally in more than 10 years' time, but can also be anything in more than two years. Have your notebook and pen ready at your desk. Think about the things your plan for after the next two years, in five years, ten year or longer. It can be related to your age, for example age 45, 60, 65, important anniversaries, for example 20th wedding anniversary, or milestones for your children, for example age 7 going to primary school, age 18 going to university. Jot them down in your notebook. Speak to your spouse, partner, children, families and friends that you would like to plan things together with, jot down the additional things that are going to happen after the next two years. Be specific in your goals. Visualise what you would like to happen, write down the details of your goals. The more specific your goals are, the more you will be driven to achieve them. So instead of saying "living in a retirement home at the coast", make it more specific by saying "living in a two-bedroom retirement home in a secure estate in Hermanus, Western Cape by age 65". Make your goals more specific by applying the 5W2H method, asking these questions: What? Why? Where? When? Who? How? How much? Examples or ideas are:
You can now develop the list of long-term goals into a spreadsheet in your notebook, or use a spreadsheet such as Excel or Google Sheets, with the following columns: Column 1: Description of the goal Column 2: With whom (you will be doing this with) Column 3: Date (and age) Column 4: Amount required (this is the amount of money required for that goal) Column 5: Bank/investment account for this purpose Column 6: Notes/Comment (this is where you expand, to explain who will contribute, whether you will contribute for someone else, someone else will contribute for you, how you are going to build up the fund, monthly or an ad-hoc lump sum) Column 7: People/skills/resources required Column 8: Status - Not started, in progress, completed For some of these goals, in particular investment or business goals, you should develop a business plan with the necessary details. Access the required skills, such as business, financial, bankers, legal, engineering, investment professionals, to help you develop a proper business plan. Write your goals on colour stickers or magnets, stick them on your wall so they are visible, acting as reminders to you. Work out your monthly and annual plans to attain these goals. Revisit your long-term goals spreadsheet quarterly, or at least annually, to check whether you are on track, or anything you still need to do. Certified Financial Planners are trained to help people develop a holistic financial plan, focused on your long-term financial wellbeing. It is advisable to use the services of a qualified financial planner to develop your financial plan, to identify areas you may have not considered.
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