Now that we have a strong, accurate picture of your current financial situation, it's time to start looking from the present toward the future.

Before we start, let's get one thing straight: having financial goals is very important, but it's not enough.

Why?

Having a goal is only half of the battle when it comes to most things, including money. You also need to have a vision for how and why you're going to achieve the goal!

What exactly is a vision? Think of it as a big picture plan for how you will achieve your goal and why it is important to you.

Let's say, for example, you want to lose weight. But after a few weeks of changing your diet and exercise routines, you go right back to normal.

This kind of failure to achieve a goal happens all the time without a firm vision (your how and why).

The Power of a Clear Vision

Does this mean most of your goals are destined for failure?

No!

Let's revisit the weight loss scenario above.

What if you had a clear, written plan outlining exactly how and why you planned to achieve your weight loss goal, like the simple one below:

How

• Eat a 2,000 calorie-per day diet
• Track a minimum of 10,000 steps per day using a FitBit
• Drink ten 8-oz. glasses of water per day

Why

• Reduce/eliminate frequent headaches and insomnia
• Improve overall happiness and life satisfaction
• Regain the ability to wear clothes that do not fit

Would these 6 bullet points make the difference between failure and success?

Nothing is guaranteed, but the impact of your "how" and "why" working together is a very powerful one-two punch.

Creating the Right Kind of Goals

My friend Lauren Riling said it best on my blog - when you have a vision the tough stuff is WORTH the sacrifice.

Another way to look at it: a clear, solid vision helps you to ensure that the goal you're pursuing is a goal that you really want to accomplish.

One way to ensure that this is, in fact, the case is to visualize the end result and circumstances of achieving your goal. Stephen Covey refers to this as 'beginning with the end in mind."

This process is a very effective way to "reverse-engineer" your financial goals. In order to visualize your ideal-but-realistic end game, answer the following questions:

• What event or money problem led you to take this course?
  Ex: Debt, job loss, fighting about money with your partner
  
  
• What do you hope to achieve by improving your money management?
  
• What do you value most in life? How do your money management practices reflect your values?
  
• Are you stressed out about money? How would life be different without these stressors?
  
• How would you like your life to look 5, 10, or 20 years down the road?

Honest answers to these questions often point to consistent themes which effectively drive the creation of financial goals, so don't be afraid to take your time and truly reflect. Jot down whatever thoughts come to mind on the next page.