SETTING GOALS IS FIRST STEP TO FINANCIAL SUCCESS
If you received a gift of $2,000 today, what would you do with it? Pay bills? Put a down payment on a big-ticket item? Invest it?
Many people don't have an overall plan for the money they earn. They confuse needs and wants, which can result in few savings and increasing debts.
University of Wisconsin-Extension's Money 2000 and Beyond personal finance program is designed to help Wisconsin residents take control of their finances by providing information on how to set goals, develop a budget, pay off debts, save money and invest for the future.
"Writing down your financial goals gives you direction in your money management," says Linda Boelter, UW-Extension family resource management specialist. "Some goals are short-term, like buying a new car battery. Intermediate goals might include putting away money for a vacation or for holiday gifts. Other goals may be long-range and take several years to reach, like saving for a child's education or for your retirement."
A written financial plan help people prioritize, and can actually be an effective first step to begin saving, Boelter says. Goals within your financial plan may include paying down credit card debt, paying off a mortgage early, saving for a new car, or putting aside money in an emergency fund.
Another important first step is to make a record for current expenditures. Record all income and all purchases and bills paid over the course of several months. Writing down both earnings and expenses can help people identify areas in which they can save, and may help them eliminate purchases that they don't need to make.
Boelter says it is important to include all family members in agreeing on a plan for reducing spending, because everyone in the household must participate to make the plan work.
For more information on the Money 2000 and Beyond program, or to enroll, contact your county UW-Extension Office.
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If you have questions or comments about the Money 2000 Web site email Linda Boelter at: linda.boelter@ces.uwex.edu