When setting goals for most situations, such as your career, you first set short-term goals that support long-term goals. With personal finance, you want to look at your goals more or less in reverse order.

First, you need to determine where you want to be financially during your later years of life, such as when you reach retirement and are no longer earning money from your career or business. Then, you should allow these long-term goals to drive your goal setting for the near term. (more…)