Nothing like the present to set financial goals

Through all the planning, always make allowances for changes

Financial priorities evolve over time. And while change by itself isn’t bad, balancing the resilience of pursuing chosen goals while redefining priorities can be tricky. To strike such a balance, one must be realistic about why changing course is necessary.

Whether that goal is to buy the first car, save for a house,

or set aside a retirement fund, success often hinges on the ability to show discipline and to understand basic financial planning. Barring unexpected circumstances, one should remain on track and achieve those goals ... even when these goals shift. Easier said than done? Maybe. But giving up on goals because they appear to be difficult isn’t a strategy. A better way to go about it is to commit to the following steps.

Take a holistic look

The goals should not emerge or live in a vacuum — or they would remain wishful thinking. If you would like to retire at 60, for example, then have a plan based on your overall financial lifespan. This could mean skipping some vacations along the way, making careful investment decisions, or even seeking the help of a professional adviser. Although none of these steps would guarantee you will be able to reach those retirement goals, you are more likely to get closer from such efforts. In addition, when taking a holistic look at financials and goals, this helps focus on what matters most. There may have to be compromises and tough choices, because you won’t be able to have it all your way.

Have a plan

Setting money aside is not a plan ... although it is a good start. An actual plan should include a timeline with expected results and milestones along the way.

For example, if planning for retirement, consider how much you aim to save to be able to do so, the expected income, and length of savings. Once the plan is laid out, it will become easier to stick to it. And if there are changes midway, one would be able to know the impact of the decision.

Even when plans changes, it is always good to know exactly how much has been invested in money and time in pursuing that goal. Financial planning is all about having visibility on the current financial situation and one’s future.

Reconsider your approach

With long-term goals, always rethink the approach. Over the years, your income may change and so would opportunities to invest, save and grow that money. Obligations might also change. A goal when you were in the 20s may not be valid with changing life priorities. While sticking with goals is important, understanding life changes may help guide one to better ways to manage money. Financial awareness may be the best strategy when making changes.

And speaking of changes, I regret to say that is my last column for Gulf News, a publication that will always be dear to my heart. I joined Gulf News nearly 13 years ago, and although I moved on to other cities and jobs, I continued to contribute regularly. It has been a privilege to be able to work with an exceptional team of editors and to address this newspaper’s diverse audience for so many years.

So if you are curious about what I do or want to remain connected, follow me on Twitter or send a LinkedIn message. Meanwhile, always keep money and your priorities in perspective.

■ Rania Oteify, a former Gulf News’ business features editor, is a Seattle-based editor.