How to create S.M.A.R.T financial goals
What is a S.M.A.R.T financial goal?
It's about getting really clear about what you want financially and how you’re planning to make it happen.
S - Specific. What exactly do you want to accomplish?
M- Measurable. How will you be measuring your progress?
A - Achievable. How will you be able to make this happen?
R - Relevant. Why do you want to do this?
T - Timely. When will you have this done by?
This is a helpful exercise for getting really intentional. A month long much needed vacation to a tropical place or a new car may remain just dreams unless you make a plan on how to achieve them! Creating S.M.A.R.T goals is your roadmap to success.
WHY DO SMART GOALS WORK?
As long as you have a realistic goal in mind setting up a S.M.A.R.T goal helps you get organized and on the right path to success. The process of getting your thoughts out of your mind and on paper helps define clarity and motivation.
Having a script of what you need to do means you can relax and just follow the plan.
No more unnecessary worrying when you have a plan laid out in front of you. Seeing your plan written out on a piece of paper makes it feel real. And making S.M.A.R.T financial goals involves some creative thought you can be proud of.
You will also have a feeling of hope. When you find yourself in a stressful financial situation, working through this exercise will offer hope to what may appear to be a hopeless situation.
Here is how to do it:
1. What exactly do you want to achieve? Be very specific here. For example, “I would like to pay off $10,000 of my car loan debt in exactly one year”
2. How will you measure your success? Will it be achieving small micro-goals along the way? For example, “Each month I will contribute $550 toward my loan.”
3. Is it achievable? For example, is it possible to contribute $550 toward the loan? Write out how and why it’s possible.
4. Is it relevant? Why do you want this goal to happen and what will that provide for you? For example, “If I pay off my car loan in a year, I will have the freedom to contribute to a down payment for a home.”
5. When will you achieve this goal? Pick a timeline. For example, “In one year”.
Do this with every financial goal you have in mind – big or small. It's okay if you slip up a few times. Don't be too harsh on yourself. Adjust your goals when you need because life happens, but if you have an emergency fund set up and a budget, you should be able to accomplish everything you set out to do.
Here’s the most complicated part: You wrote out your goals but are having problems following through. I recommend reading “3 THINGS YOU CAN DO TO STAY ACCOUNTABLE” to give you that extra push!
Print out your smart goals and place them on your vision board so you can see them every day!
Now go get planning! For a S.M.A.R.T goals worksheet CLICK HERE!