The next step is to prioritize your goals according to which ones you would like to achieve first. Most likely you have limited resources, so determine which resources you will allocate to which goals.
Decide on your definition for Immediate, Short-term, and Long-range. These categories do not refer to the time when you will accomplish them, but rather to the time when you will begin to fund them.
For instance, retirement is a long-range goal, but you may want to be funding it now. So it goes in the Immediate category. Making a documentary film may be a goal of yours, but you may not want to allocate resources to it for a few years yet. Put this in the Long-range category.
There is no fixed time frame for what each of these categories means. First, determine the distinctions between immediate, short-term, and long-range. Remember, the distinction is not when you want to accomplish the goal, but when you want to begin funding it. Now, assign to each goal one of the three categories, Immediate, Short-term, and Long-range.
Next, choose your top three items from each category. These are your financial goals—the things that, taken together, represent what you “should” fund, as well as the things you really love and want to fund. These represent the top nine goals upon which you will focus your resources.
If you are a couple, come up with your own list, while your partner does the same. Then put them together and agree upon the top nine goals.
Stay tuned for next week’s post on step three: figuring out the cost!