3 minute read
Hello beautiful people from across the lands! I know, I know I’ve been MIA for about a month and some change. Hold the tomatoes! I’ve been making progress with my budgeting habits and paid off my first smallest debt! Bye, bye Payday loan devil! As the year is wrapping up many of us are reflecting, refining, and may have some regrets on the goals we set out for the year. Staying focus and committed to your goals is only a small portion of what is needed to see your financial or any goal through.
Having a specific plan that is measurable is key. In my studies for my Social Work degree I learned about S.M.A.R.T goal planning when setting treatment goals with your client. I found this system to be helpful with any type of goal setting. So, what is a S.M.A.R.T goal? Well, I’m glad you asked! S.M.A.R.T is an acronym that stands for specific, measurable, achievable, relevant, and time-bound. When setting your financial goals you want to be intentional and clear on what you want and how you plan to get there.
Be Specific
Stating what you hope to achieve is the easiest and sometimes the misleading part in goal setting. Simply saying “I want to get out of debt” is not specific and clear. You want to include the what, why, and how in your goal statement. A more specific goal would be “I want to pay off $10,000 of my student loan debt to help build my credit and payment history toward becoming a homeowner”. See the difference? The second statement creates a clearer picture of what your doing and why. We are more driven to move toward goals that have a strong emotional connection with it.
Be Measurable
Now specifically saying what you want is only the beginning. How will you know you’re on the right track to getting there? How do you know when you’ve arrived? Questions you want to keep in mind when setting your financial goals. Measuring your goal allows you to track your efforts toward achievement. When your goals are measurable your able to track where you are presently to where you desire to be. For example, let’s say your debt total is $30,000 (I wish!) your measurement base of your goal would be getting down to $20,000 by paying off $10,000 of debt. The $20,000 mark provides the tangible evidence that your goal has been met. Being able to track your progress or lack thereof helps putting forth the action needed to achieve your goal.
Be Achievable
Achievable goals are ones that are realistic but stretches you at the same time. Continuing with our pay down $30,000 debt goal. Saying I want to pay off $25,000 of my debt by the end of 2019 might be far stretched. Not impossible but too large of a goal that has a higher chance of not being achieved. You want to be sure to fully examine where you are financially (a budget helps) and be intentional when deciding on the goals you want to accomplish. The goal should be balanced and causes you to stretch a good amount to achieve it. Goal balance is key!
Be Relevant
Relevant goals are ones that matter and connect with your desires. Becoming debt free and being a homeowner is a big desire of mine. Growing up moving from one apartment to the next and never understanding the value of Real Estate is not something I want to past down to my children. The journey to debt freedom and financial independence is bigger than me. I want it to change my entire family tree. It’s important to have goals that are relevant to you because the ups and downs of achieving them could easily cause you to stop if its not.
Be Time-Bound
Last but not least time-bound goals. NEVER set a goal that does not have an achieve date. Meaning there should be a deadline in place for when this goal will need to be completed. Think about in high school or college with the many papers and assignments that had deadlines. Imagine how much you would have got done if it didn’t! I would still be writing thesis papers now! The procrastination is real! Even on our jobs we have deadlines with quotas that need to be met. Bottom line is deadlines work! It creates the urgency and pressure needed at times to get things DONE! It’s the same with your financial goals. Without that achieve date your lessening your chances to consistently put in action toward your goals.
Recap
S- Specific is the what, why, and how of the goal
M- Measurable goals should be able to measure tangible evidence the goal has been achieved
A- Achievable goals should stretch you far enough for a challenge but not too far to obtain
R- Relevant is aligning your goals to your desires you want to accomplish
T- Time-Bound goals are linked to a time-frame or deadline that creates needed pressure to complete
2019 and beyond can be your year! New Year resolutions orgoals are just wishes without an intentional clear plan of action put in place.Using the S.M.A.R.T formula allows you to get clear and direct on what is you’veset out to accomplish. Happy Holidays! Live your best life and remember todream, believe, and achieve.
