Step 1.  Enumerate all the important activities that you will encounter in your lifetime that will require a substantial amount of funding.  When you’re doing this, try to list down as many goals as possible without qualifying them.  This way your flow of thought goes through smoothly.  If you have a spouse, it is best to get your life partner involved in this very important process.

 Step 2.  Organize each goal in terms of time-lines.  Time is a critical factor in saving for your goals.  Having a lot of time makes it easier to reach the goals but then again not all goals are long-term goals.  So group each goal into Intermediate (less than 3 months), Short-term (more than three months but less than 2 years), and Long-term (two years and over).  These timelines represent the period by which each goals are to be accomplished.  Note that the time-lines may vary for different people.  What is important is to know exactly when you need to accomplish a certain objective. 

 Step 3.  Come up with SMART Goal Statements for each objective.  Make sure that each goal you enumerated can be stated as Specific, Measurable, Attainable, Realistic, and Time-bound objectives.  To accomplish this, you will need to quantify each financial objective and estimate the amount of time you have to reach these goals. 

 The steps are easy enough to follow.  Just make sure you put them all on paper. 

Remember:  The difference between a GOAL and a DREAM is the written word!

• Specific. You need to know exactly what you want to achieve and when you want it.

General Goal:   I need to set aside money for next year’s tuition fees

Specific Goal:   I need to set aside P60,000 for next year’s tuition fee

• Measurable.   A goal should be measurable so that you know when you have achieved it.

General Goal:   I will pay off most of my credit card debt soon.

Measurable Goal:   In the next six months, I will pay three of my five credit card bills in full.

• Attainable.  Your goal should be within reasonable reach.

General Goal:   I will save money.

Attainable Goal: I will save P24,000 each year by putting aside P1,000 a week (or P200 every week day).

• Realistic.  Your goals need to be based on resources and tasks that you can reasonably accomplish.

General Goal:   By saving regularly, I will become a millionaire.

Realistic Goal:   By saving regularly, I will be debt free by next year and will have an emergency fund equal to six months of living expenses the year after next.

• Time-bound. Goals with timelines allow you to track your progress and encourage you to keep going until you reach your goal.

General Goal:   I will save money for my retirement.

Time-bound Goal:   I will save P50,000 a year for the next 10 years so I can retire comfortably.