Financial Planning Worksheet A–Short-Term and Long-Term Goals Everyone wants to make good decisions-decisions that maximize benefits and minimize costs. However, it can be hard to make good decisions...

Extracted text: Financial Planning Worksheet A–Short-Term and Long-Term Goals Everyone wants to make good decisions-decisions that maximize benefits and minimize costs. However, it can be hard to make good decisions when you aren't sure what you want to achieve. That's why setting goals and creating and following a financial plan with your goals in mind is so important. When you know where you want to be in the future, it is often easier to get there. Most of the day-to-day decisions you make are only single parts of the larger problem of getting what you want from life. Suppose you spend $20 to see a movie and go out for pizza with your friends. Your decision was made to achieve a short-term goal of immediate enjoyment. Remember, however, that whenever you make a choice, you also make a trade-off. The $20 you spent for pizza and a movie can't be spent or saved for something else. All of your decisions are related to each other, and so are your goals. The $20 you spent for entertainment helped you reach a short-term goal. However, you no longer have that $20 to help you reach more important long-term goals. Suppose you had also decided to save $20 each week to make a down payment on a car in three years. The decision to save is a short-term goal, but it's one that can help you reach your long-term goal of owning a car. Your chances of reaching your most important long-term goals are better when you set short-term goals that help you reach them. Directions: Identify and explain two short-term goals that you could set today that would help you achieve the long-term goal identified. 1. Long-term goal: Start your own business. A short-term goal that would help achieve this would be to. Another short-term goal that would help achieve this would be to. 2. Long-term goal: Buy a house. A short-term goal that would help achieve this would be to. Another short-term goal that would help achieve this would be to. 3. Long-term goal: Retire before the age of 60. A short-term goal that would help achieve this would be to. Another short-term goal that would help achieve this would be to.