# Achieving Financial Goals - FSHEC116 by wendang

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```									UNIVERSITY OF ARKANSAS DIVISION OF AGRICULTURE Cooperative Extension Service

Family and Consumer Sciences

Achieving Financial Goals

Judith R. Urich, 	 Ph.D., CFP™
Family Resource 	 Management Specialist

Arkansas Is Our Campus

University of Arkansas, United States Department of Agriculture, and County Governments Cooperating

Action Steps
1. 	 _____________________________________________ _ 2. 	 _____________________________________________ _ 3. 	 _____________________________________________ _ 4. 	 _____________________________________________ _ 5. 	 _____________________________________________ _ 6.	 ______________________________________________ Now determine if your action steps are manage­ able and realistic. Are they too big or too small? Can you achieve each of these steps? Put your plan into operation and track your progress. If necessary, make changes in your goals. Your action steps may also need changing. Remember that the goals and action steps are written on paper, not in stone. Make changes that will help you reach your goal. If you find your goals are not as realistic as you thought, change them, but do not drop them completely.

5.	 Use the table below. Look for the number of years until the goal and the rate of return. Take the lump sum amount needed and divide by the num­ ber in the column. The answer is the amount you need to set aside each month to achieve your goal. ______________________________________________ 6.	 Which investment vehicle(s) are you going to choose? ______________________________________________ Example: You want to replace your car in five years. You need to save \$10,000 and expect an after-tax return of 4% (\$10,000/66.2 = \$151.06). You need to set aside \$151.06 per month to reach your goal.

Multipliers by Rate of Return
Years to Goal
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

2%
12.1 24.5 37.1 49.9 63.1 76.5 90.2 104.2 118.4 133.0 147.8 163.0 178.5 194.2 210.4 226.8 243.6 260.7 278.2 296.1 314.2 332.8 351.8 371.2 390.9

4%
12.2 24.9 38.2 51.9 66.2 81.1 96.6 112.7 129.5 146.9 165.1 184.0 203.6 224.0 245.3 267.4 290.4 314.3 339.2 365.1 392.1 420.1 449.3 479.6 511.2

6%
12.3 25.4 39.3 54.1 69.8 86.4 104.1 122.8 142.7 163.9 186.3 210.1 235.4 262.3 290.8 321.1 353.2 387.3 423.6 462.0 502.9 546.2 592.2 641.1 693.0

8%
12.4 25.9 40.6 56.4 73.6 92.1 112.3 134.1 157.7 183.4 211.1 241.2 273.7 309.0 347.3 388.7 433.6 482.2 534.9 592.0 653.8 720.8 793.4 872.0 957.2

1.	 Financial goal ________________________________

2.	 How much will your goal cost in today’s dollars? ______________________________________________ 3.	 How many years until you meet your goal? ______________________________________________ 4.	 What is the after-tax return you can expect? __________________________________ (2%, 4%, …)

Financial Goals Worksheet

Goal Short-term (within the year) _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ Intermediate (1-5 years) _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ Long-term (over 5 years) _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ ____________ ____________ ____________ ____________ ____________ ____________ ___________ ___________ ___________ ___________ ___________ ___________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ___________ ___________ ___________ ___________ ___________ ___________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ When
Needed
Total Cost Monthly Savings

TOTAL AMOUNT TO SAVE MONTHLY The key to goal achievement is goal setting. Remember, people don’t plan to fail: they fail to plan – or set goals.

Achieving Financial Goals

Short-Term (Within the Year) Financial Goal Statement: _____________________________________ ____________________________________________________________________________________ Three ways to achieve short-term financial goals: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Intermediate (1-5 Years) Financial Goal Statement: _________________________________________ ____________________________________________________________________________________ Three ways to achieve intermediate financial goals: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Long-Term (Over 5 Years) Financial Goal Statement: ________________________________________ ____________________________________________________________________________________ Three ways to achieve long-term financial goals: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________

Reprinted with permission. Original manuscript by Mary J. Stephenson, Ph.D., CFP™, CLU, Extension specialist and associate professor, Cooperative Extension Service, University of Maryland.

DR. JUDITH R. URICH, CFP™, is family resource management specialist, University of Arkansas Cooperative Extension Service, Little Rock.

FSHEC116-PD-6-03RV

Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Director, Cooperative Extension Service, University of Arkansas. The Arkansas Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, marital or veteran status, or any other legally protected status, and is an Equal Opportunity Employer.

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