We all keep hearing and learning that every meaningful goal must be SMART. We are going through a challenging time amid a pandemic where our lives and livelihood are badly affected. So the need to have SMART money goals is all th more become a necessity of the time.
Let us see how we can create SMART goals to outsmart the challenging financial situation haunting us.
The SMART acronym stands for – Specific, Measurable, Achievable, Realistic, and Timely or Timebound.
SPECIFIC– We need to have a precise outcome in mind while making our financial plan. Financial planning is a comprehensive exercise that is made based on your existing and future financial situation. If properly executed, it will help you systematically attain all of your objectives. So be specific on how much you are going to invest and what exactly your expectations are.
MEASURABLE: We need to have a transparent system to measure the input and output expected. Measurable goals allow you to track your progress and set checkpoints along the way. The advantage of having a quantifiable goal is that a clear picture of your progress and the need for modifications will constantly be in front of you.
ACHIEVABLE:
Even if your goals are specific and measurable, if not logical, you don’t stand a good chance of getting them implemented. Nobody but you can decide whether or not you can reach your goals. On top of that, you alone can figure out what steps you need to take to achieve those goals. So keep them simple, realistic, and achievable.
REALISTIC :
The financial goals that you have set must make some sense. It must be relevant and realistic. Some decisions like retiring at the age of 60 as a millionnaire may feel like an unrealistic financial goal. But if we break the plan into months and start saving and investing a measurable amount in a specific method, we will surely achieve it. So keep all the financial plans realistic and relevant.
TIMELY
You understand what your precise goal is, how to measure your progress, how you’ll achieve it, and whether or not it’s realistic. It’s now time to give yourself a deadline. Deadlines and timebound actions will help you reap the maximum benefits of your decisions. In saving and investment, timing is everything. If you invest at the right time at the right place, it can bring you fortunes. If you start saving at the right age, you will be able to achieve your aspired financial goals in life. Always respect your deadlines and take timely decisions, and the future will appreciate your actions.
Let your smart goals give you a prosperous and productive start to your financial journey in the year 2021.
Be S.M.A.R.T