Chances are most persons have set a financial goal which they wish to achieve by a certain age. While they might not think of it that way, certainly many persons will be familiar with the determination to own a car or a house by a particular age.

However, wealth adviser Alrick points out that while the big material landmark, the acquisition of this significant piece of property, is set as a benchmark for the financial progress of the individual, many times the small steps towards this goal are not taken into consideration.

"It is all well and good to say you want to own your own car by you are 25 years old, and certainly it is possible. And by possible, I mean legitimate money," he said. "However, having a car at that age does not come simply by saving wholely and solely towards it. There are many steps along the way, from a certain amount of money saved by, say, age 24 to payment of outstanding liabilities such as student loans."

DRAWBACK

And he also pointed out that while owning a car at 25 might appear to be astounding financial progress, it is not necessarily so. "First of all, just what does ownership mean? If you have committed a significant percentage of your income over the next five years to paying a car loan, that certainly is not financial progress, not on a sharply depreciating asset," Alrick said.

"In addition, there are costs associated with car ownership, including fuel and regular maintenance, that means there is much less money to commit to investment," he said.

A house, given that it is in a good location and in condition which makes it poised for significant appreciation, is a much better benchmark of that much longed for progress, but again Alrick points out a drawback in setting an age goal. "Paying a mortgage at 27 is all well and good, especially in a country where so many people go through life without owning a home. However, if this means buying a property that will not serve long-term family goals, such as the natural expansion with children, then it will almost certainly present a problem in the future," he said.

"Selling a house and buying another is not as simple a process as, say, a car," Alrick pointed out.

COMMON GOALS

Other common goals are a certain amount of money in savings accounts and being free of student loan debt and while having these objectives is commendable, Alrick points out that not only should persons be careful in pursuing these goals to the exclusion of all else, but also that allowances should be made for a changing social climate.

"If you save all your money and do not take care of your health, then you cannot be financially sound. And if the economy takes a downswing and a goal is not achieved, it should not be cause for feeling like a failure," Alrick said.