The first, and most important step, in solving your money problems is to set your financial goals.
Why are financial goals necessary?
Without goals, you will not achieve your targets.
An architect creates a blueprint for a house before the builder starts to build. Building a house without a plan would lead to certain failure.
The same is true with financial planning. Without goals and a plan, your chances of failing are very large.
What goals should I set?
Everyone will have different goals.
If you are currently experiencing severe money problems, such as constant pressure from creditors and wage garnishments, your immediate goal will be to deal with your creditors.
If however you have no debts but are worried about saving for retirement, your goals will be quite different.
To set your goals, start by making a “wish list”. Decide what you want and need. Getting out of debt? A new car? A new house? Once you can visualize what you are working towards, the final nine steps in the Money Problems Plan will fall into place.
Once you know your goals, step two is to assess your current situation. Do a “reality check”.