Goal of Financial Planning

To make our financial planning, we need to have our goal or target to achieve it. The common target is as below,

- to buy a new house

- to buy new car

- married

- education for our children

- vacation

- retired

- medical expense

- etc.

Priority of the goal is depend on each person situation and we need to make plan base on our priority.

There are three step to make financial planning,

1) Short term

What we are able to do in short term period, in one week or several month, but not ore than one year like to buy dress or saving for vacation.

2) Midle term

What we can do in the period from 1 to 5 years like to buy new car.

3) Long term

Is the longer period, from 5 years and above like to buy new house, saving for child education, etc.