/wasana.news. {entrepreneur: critical thinking}; If you don't know where you are going, how will you get there? Many of us have an idea of where we want to be financially or a specific goal in mind we would like to achieve. However, if you start without a goal and then try to create a plan, there is a great probability you'll get nowhere. First you must determine what your goal is, create timelines to get there, then plan your course of action. Many of us have goals we would like to fulfil; be it higher education, a new car, a first home or even a dream vacation. These desires, however, cannot magically manifest themselves; in order to achieve them we must have the financial capacity to make them happen. Achieving this financial capacity requires proper planning. Set realistic and measurable goals When setting your financial goal one of the first things to consider is how realistic the goal is. If the goal is realistic, the next step is to ensure that the goal is measurable. A measurable goal can be broken down into smaller incremental goals that when combined will produce the required overall outcome. For many individuals, breaking down the goal into smaller ones can have a positive psychological effect. As we complete smaller goals on the way to our overall target, we feel a sense of accomplishment, and this helps to push us to achieve more. Focusing only on the long-term goal can make it seem more tedious, and this can cause demotivation. Is your goal feasible? As you set your goals how do they factor into your overall financial health? If the decisions you make leave you in a negative financial position at the end of the day, you may want to rethink your goal and strategy. Achieving financial goals involves saving and investing. But the amounts to be saved and invested must be within your income level in order for the plan to be feasible. Set a timeline Having set your financial goal and determined its feasibility, you should give yourself a timeline. When you have a specific timeline, you can then tailor your investing to match your timeline. For a medium to long-term investment timeline, one may consider mutual funds, equities or equity linked investments. But be aware of the nature of equities and the possible volatility. For long term timelines, a mix of both equity and fixed income investments can help to achieve your goal. Always understand the nature of the underlying security when matching investment to investment timelines. Where necessary, seek advice from a professional in order to avoid devastating mistakes which can hinder the attainment of your goal. BY Christine Rankine.