Financial goals are not just
monetary goals, although such goals are obvious and appropriate. Goals can be short-term,
intermediate-term, and long-term.
Short-term goals refer to the next twelve months. What does a client want his personal
balance sheet to look like in twelve months? What would he like to do during the coming
year: Where would he like to spend his vacation? How much would he like to spend on the
vacation? What assets, such as a new computer or a new car, would he like to acquire?
Intermediate goals are usually more financial in nature and less specific in terms of activities
and acquisitions. As one thinks further into the future, one cares more about having the
financial ability to do things and less about the details of what one will do. Most intermediate
goals would likely include more than just wealth targets. For example, a client may target
a date for buying his first home. Intermediate goals often address where one wants to be in
5 or 20 years.
For most people, long-term goals include their date of retirement and their accumulated
wealth at retirement. What sort of personal balance sheet does a client want to have at
retirement?
The goals of a system for personal financial planning consist in helping a personal financial
planner to handle the financial situation of a client in a way that the client can maximise
his/her quality of life by using money the best way for him/herself.
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