ARTICLES > Setting SMART Financial Goals.
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Setting SMART Financial Goals.
The second, which is what this article is all about - set goals. Whether it is to do with finance, fitness, weight loss, business or some other area of life, goals are exceptionally motivational. And there is little doubt, it is easier to save money when we have something to aim for than when we are saving just for the sake of saving. But, they have to be the right sort of goals. GOOD GOALS AND BAD GOALS.The mistake many people make is that they think they have set a goal when what they have is really more of a dream or a vague wish. Vague wishes and dreams seldom become reality. Good goals are concrete – good goals need to be SMART.GOOD GOALS ARE S-M-A-R-T GOALS.Goals need to be; S – specific M – measurable A – attainable R – realistic T – time-related ►Specific – this is where most people fail in achieving their goals. Their goals are too vague. If I said, “I want to travel overseas sometime,” I have not set a specific goal and I am unlikely to achieve it. “I want to travel to Brazil in March 2010. I will be away for 2 months and it will cost me $12,000. I have money in the bank but will need to save $100 a week until I leave,” that is a specific goal. In fact, it’s more than just specific because it is also; ►Measurable – I can measure this goal on a weekly basis by calculating how much cash I have in the bank. I can even make a chart to enable me to track my progress as I work towards this goal. ►Attainable – Presumably I will have priced my trip accurately, calculated the rate of savings required to attain my goal, and am able to achieve the required $100 per week. No matter how specific a goal is, it is pointless if it is unattainable. ►Realistic – Goals need to be realistic also. I have money in the bank otherwise it would be unrealistic to set this goal. To save this money would require around $400 a week in the time-frame given and I can’t afford that. In the same way, the goal would be unrealistic if I had, for instance, a medical condition that prevented me flying. Goals need to be realistic. ►Time-related – Finally, goals need to be set within a timeframe. An open ended goal is not a proper goal because human-nature and procrastination will always get in the way of achieving it. Something Else that is Really Important.Now we come to the important part of setting goals. Of course it’s all important but even SMART goals are unlikely to succeed if they are not written down. That is a crucial factor in all of this; write your goal(s) down.What dreams do you have? Maybe, at this stage you’d like to pay off your mortgage. MortgagePlan will enable you to set SMART goals. Maybe you have other dreams such as an overseas trip, or renovations to your home, or a new car or one of those plasma televisions everyone is talking about: they will remain dreams until you make them goals. At that point they can begin to become reality. So, what are you waiting for – start turning those dreams into SMART goals and make them happen!
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