What do you want to have? This is where your dreams and your wish list come in.

What will it take to get you what you want? Can you do that with your current company or do you need to consider going to another company for more money? Do you need to consider a second job? Or do you need to consider more education like I discussed earlier?

What will it cost to buy house you really want? If you currently rent, a house is an investment. If you already own a home, you need to ask yourself if a different home is a need or want. If your family is growing and space is an issue, then it is a need. If you want your children to grow up in a better neighborhood or attend a better school district, this is also a need.

If you are thinking of selling your home just because you want a better home, you have to ask yourself if it really is worth it?

Will you make enough money from this home so your mortgage payments won’t be too much higher than they are now? Can you accomplish same thing by taking out a home equity loan or line of credit and fix up your current home?

Are you willing to take longer to reach your other financial goals just to have home that you want?

How much will it cost to give your children college education you want them to have? Will you handle whole cost or will you expect them to get a part time job to pay for their books and to earn their own pocket money? They need to know what you expect of them and they need to know what they can expect from you.

Have your parents provided well enough for themselves during retirement? Will you have to help them out financially should one or both of them become ill? Will they need to live with you if that happens? Do you have space or money to make necessary adjustments if that does happen?

How much will it cost to retire with lifestyle that you want?

How much time do you have to accomplish theses things? Whether you have 20, 30 or 40 years to accomplish these things will make differences in answers to questions.

These are only some of things you need to think about. It depends on what you have now and where you want your life to go. That is different for everyone. Only you can decide. Only you can choose what you want next year to be for you and what you are and are not willing to do to accomplish those things. Deciding to make a change won’t work if you don’t take actions necessary to make those changes.

It can be done though. People change their lives for better all of time. All it takes is desire to come up with a plan to make changes and determination to stick to plan and see it through. Knowing full well that there will be bumps in road and things will come up unexpectedly but adapting and changing with unexpected and getting back on road again.

You can do it if you want to do it badly enough. Start small if you have to. An extra five or ten dollars a month saved in a retirement account or put toward debt over time does make a difference. Don’t think that because you can’t start off with a bang or with some grand gesture that you should not start at all. Time and compounding interest is on your side and works even when you start small as long as you keep at it.

Now it’s time for you to decide. Are you going to be one of those people who makes resolutions and forgets about them? Or one of those people that keep doing same things and expects different results? The same things will only bring you same results. Or are you going to be one of those people who has decided that next year and every year after will be better than year before and act on it?

Teresa Kaufman is the owner/creator of http://www.yourdollarsandsense-budgets.com Copyright © 2004

If setting goals in new to you and you don’t have any idea where to start, get a piece of paper out and make a wish list. Again, be as realistic as possible. If you are only making minimum wage and your wish is to buy a BMW or a Jaguar in next year and you already have other expenses, it’s not going to happen unless you also plan on increasing your income.

When you are making your wish list, you should also write down in how many years you would like to see it happen and approximately how much money it will take to fulfill this wish. Then decide order of importance of your list. Which wish you would like to work on first, next etc. If you are single, this is your starting point.

If you are married or have a partner, you should both work on your own lists. Then you should compare them and make compromises so you can both get as much of what you want as possible. Then work on order in which you will work on these goals.

The most important step in setting goals is implementing them. Making a list is fine, but if you stick it in a drawer with your paperwork and forget about it, it won’t do you any good. They have to be something that you really want and are willing to make changes and adjustments in your life in order to set money aside for them.

A dream will always be just a dream if you don’t have a plan of action to turn it into a goal and then to make that goal a reality. You need to keep that list with you or keep it where you can see it a few times a day. Look at it as often as possible. Keep thinking of where you are now and where you want to be in future. Think about what it’s going to take to get there and ways that you can accomplish those goals.

You don’t get a promotion or a raise at work without putting in effort to prove you deserve it. Your dreams will not turn into reality if you put them someplace and forget about them. You have to be willing to put time, effort and motivation that you use in other things into making your financial goals come true.

You can face your financial future and make it better. Whether your finances are in okay shape and you would like them to be better or whether you are having temporary difficulties. You just need to have a plan and determination and desire to follow it through.

Part II of this article is going to cover questions you need to think about to start goal process and more questions you should consider when you are starting to implement your goals into your budget.