--- title: How to Determine Your Financial Planning Goals description: The first step towards financial freedom is learning how to create and execute financial planning goals. Here are five steps to beginning this process. image: http://www.4tfg.com/hubfs/Blog/How-to-Determine-Your-Financial-Planning-Goals.jpg --- [![4thought\_footer-logo.png](https://www.4tfg.com/hs-fs/hubfs/4thought_footer-logo.png?width=335&height=101&name=4thought_footer-logo.png "4thought_footer-logo.png")](https://www.4tfg.com/) - [![4Thought Financial Group](https://www.4tfg.com/hubfs/4thought_footer-logo.png)](https://www.4tfg.com/) [![4Thought Financial Group Compass](https://www.4tfg.com/hubfs/4Though-Compass.png)](https://www.4tfg.com/) - [About 4Thought](https://www.4tfg.com/investment-methodology) - [Our Investment Methodology](https://www.4tfg.com/investment-methodology) - [Management Team](https://www.4tfg.com/management) - [In the Media](https://www.4tfg.com/media) - [Contact](https://www.4tfg.com/contact) - [Services](https://www.4tfg.com/investing) - [Private Individual Investing](https://www.4tfg.com/investing) - [SMAs for RIA /Institutional /Family Office](https://www.4tfg.com/financial-advisors-and-institutions) - [Services for CPAs](https://www.4tfg.com/cpa-investing-services) - [Private Wealth Management](https://www.4tfg.com/wealth-management) - [Retirement Plan Services](https://www.4tfg.com/retirement-plan-services) - [Resources](https://www.4tfg.com/resources) - [Financial News](https://www.4tfg.com/resources) - [Portfolio Review](https://www.4tfg.com/portfolio-review) - [Investment Performance](https://www.4tfg.com/performance-requests) - [CPA Continuing Education](https://www.4tfg.com/cpe-continuing-education) - [FAQs](https://www.4tfg.com/faq) - [FAQs](https://www.4tfg.com/faq) - [Contact](https://www.4tfg.com/contact) - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) - - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) ## 4Thought Investing Resources ## 4Thought Investing Resources [Financial News](https://www.4tfg.com/resources/) [Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) [Personal Finance](https://www.4tfg.com/resources/topic/personal-investing) [Business Finance](https://www.4tfg.com/resources/topic/business-finance) [For Professionals](https://www.4tfg.com/resources/topic/financial-professionals)[Compass and Crosshairs](https://www.4tfg.com/resources/topic/compass-and-crosshairs) SUBSCRIBE Subscribe for free tips and articles to help you lead a smarter financial life. [Financial News](https://www.4tfg.com/resources) ,[Financial Planning](https://www.4tfg.com/resources/topic/financial-planning) # How to Determine Your Financial Planning Goals The first step towards financial freedom is learning how to create and execute financial planning goals. Here are five steps to beginning this process. \[fa icon="calendar"\] Mar 23, 2017, 10:49:26 AM by [4Thought Financial](https://www.4tfg.com/resources/author/4thought-financial) ![How to Determine Your Financial Planning Goals](http://www.4tfg.com/hubfs/Blog/How-to-Determine-Your-Financial-Planning-Goals.jpg) Info Sheet - PDF Download [![](https://www.4tfg.com/hubfs/Collateral/Wealth-Management.png "Wealth Management and Financial Planning")](https://www.4tfg.com/hubfs/Collateral/Wealth-Management.pdf) ### **Wealth Management by 4Thought Financial Group** "The comprehensive wealth management we provide involves the coordination and execution of four different types of financial planning: Investment Planning, Estate Planning, Business Succession Planning and Fringe Benefit Planning." [View the PDF](https://www.4tfg.com/hubfs/Collateral/Wealth-Management.pdf) [Save the PDF](https://www.4tfg.com/hubfs/Collateral/Wealth-Management.pdf.zip) [*Learn more about Wealth Management and Financial Planning*](https://www.4tfg.com/wealth-management) The purpose of money is to create stability, peace of mind and enjoyment for you and your family. If you work towards these three things, you'll always be on the right track. With that in mind, here's the order in which you should take on your financial planning goals. ## 1. Build Your Emergency Fund Most experts recommend [keeping an emergency fund that covers at least three to six months of living expenses](https://www.nerdwallet.com/blog/investing/is-your-emergency-fund-too-big/). Some even say your emergency fund should be enough to last a year. Your emergency fund should cover things like unexpected car repairs, large medical bills, or temporary unemployment. Having this fund prevents you from racking up high-interest credit card debt that could linger for years. Most importantly, it gives you the security of knowing that you can tackle life's challenges without worrying about losing your home or where you will get the money. ## 2. Eliminate Debt Your next goal should be eliminating debt. [Good Financial Cents](http://www.goodfinancialcents.com/good-financial-goals/) classifies debt as "evil" and with good reason. Not only do you have to pay the money back but the amount you have to pay keeps increasing thanks to interest until you've paid back every cent. There are two reasons to put cutting debt after your emergency fund. First, you want to be in a position where you can completely avoid adding debt. Second, there may be times when you absolutely need cash and aren't able to take out a loan or open a new credit card. Start with the highest-interest debts that put the biggest strain on your finances and work your way down. Along the way, look for refinancing offers or credit card balance transfer deals, but don't use these as an excuse to add debt. ## 3. Grow Your Retirement Account When retirement seems like a distant dream, it can be too easy to put off your retirement goals. You must make [retirement savings](https://www.4tfg.com/resources/a-401k-rollover-is-easier-than-ever) one of your highest priorities. While many people plan on working, at least part-time, into retirement, there is no guarantee that you will be physically or mentally able to work. Your industry may enter a decline, or you may need to leave the workforce to care for an ailing family member. There are also no guarantees that Social Security will be enough to cover your bills, won't have an increased retirement age, or will even still exist when you need it. Planning now allows you to grow your portfolio and gives you financial flexibility later on. You can also take advantage of tax benefits for retirement savings to increase your spending power today. ## 4. Review Your Insurance Coverage Insurance should cover anything you can't afford to cover on your own. Think home disasters, car accidents and large medical bills. Check your policies today to ensure that you have adequate coverage. Not being properly insured could lead to bankruptcy or worse. On the other hand, you can cut your insurance expenses by trimming unnecessary coverage. Raise your deductibles, and cover minor mishaps with your emergency fund. For things you can cover completely out of pocket, like phone protection plans, skip coverage altogether. ## 5. Spend Responsibly Financial prudence does not mean living a boring life. When you take charge of your finances to tackle necessary expenses, you'll find that you still have money left over each month. Set this money aside for things like vacations, nights out and holiday presents. You'll feel greater satisfaction knowing that you've already worked to cover these expenses and don't need to worry about paying a credit card bill. Further, your responsible spending habits and debt-free lifestyle will leave you with more money available for your next [financial planning goals](https://www.4tfg.com/wealth-management). ## Was this article helpful to you? ### Subscribe to our newsletter for free tips and articles to help you lead a smarter financial life. ### Related posts [![Understanding Risk in Investing - Part 3 - Investment Methods and Risk Premiums](https://www.4tfg.com/hubfs/Understanding%20Risk%20in%20Investing%20-%20Part%203%20-%20Investment%20Methods%20and%20Risk%20Premiums%2010-13-20%20-%20Thumbnail.jpg)](https://www.4tfg.com/resources/understanding-risk-in-investing-part3-0-1-0) [![Understanding Risk in Investing - Part 2 - Modern Portfolio Theory Quantitative Tools and Statistics](https://www.4tfg.com/hubfs/BaseCamp_Archive/attachments/332823384-all-with-graphic.png)](https://www.4tfg.com/resources/understanding-risk-in-investing-part2-0-1) [![Understanding Risk in Investing - Part 1 - Common Types of Risk and Risk Management Tools](https://www.4tfg.com/hubfs/Understanding%20Risk%20in%20Investing%20-%20Part%201%20-%20Common%20Types%20of%20Risk%20and%20Risk%20Management%20Tools%2010-12-20%20-%20Thumbnail-1.jpg)](https://www.4tfg.com/resources/understanding-risk-in-investing-part1-0) ## Leave a Comment ### Search 4tfg.com This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### **What Type of Investor Are You?** You have unique investment goals. 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