There’s a saying, “money can’t buy you happiness,” and that’s probably true. However, having money can certainly open up many doors of opportunity in both our personal and professional life. While we may never become a multi-millionaire, we can learn to maximize the financial resources we have available. We can make a better plan for our future by managing our financial goal as early as today.
While our financial goals will often be closely related to our personal and professional goals, these should be defined separately. Knowing our current lifestyle and what our daily, weekly, or monthly expenses are, if wewere to change jobs tomorrow, we should have a pretty good idea of what our compensation package must include in order for us to maintain our standard of living.
As we set out to find and land a new job, set financial goals for ourselves. These goals might include starting the new job with a 10% salary increase (providing we’re qualified to earn it). We might also want to seek a job that will offer us the opportunity to earn raises or promotions, so we can increase our earning potential by 30, 40, or 50% over the next five years, for example. We’ll want to establish financial goals that will allow us to achieve our personal goals.
For example, if one of our personal goals is to own a 40-footsailboat in the next five years, we’ll require money to purchase and maintain the boat. In order to achieve this goal, one of our financial goals will need to include earning or saving enough money for this rather significant expense. To achieve the financial goal of being able to pay for a boat, we may need to set up an ongoing savings or investment plan, learn how to better manage our money, and find ways of earning additional money. These potential financial goals and action plans can be created in conjunction with our personal goals. Likewise, if our professional goal is to become a senior vice president of a Fortune 500 corporation or to someday own our own business, reaching this level of professional success will most likely include earning a significant salary.
Thus, our financial resources will be greater, which means properly managing our finances will become a more serious responsibility. Discovering what do to with our money and how to manage it will require us to set additional financial goals for ourselves. And it will put us in a better perspective in looking forward for our future.
note: originally posted at Triond.com under the same author.