Making Smart Financial Goals

We all need goals to get the motivation to get up in the morning and do whatever we planned on doing. We go to school to get a degree, we work out to be healthy, we go to work to hopefully have the career of our dreams and the list goes on. What we can tend to forget is that we need to set financial goals in order to be in control of our money. 

You may be familiar with S.M.A.R.T. goals. For those of you who don't, S.M.A.R.T. goals are set according to a list stating how goals should be defined in order to be reached.

Here's are it works: 

S for Specific 
"Spend less on useless stuff" is the kind of general goals you want to avoid because it means basically nothing. What is included in "useless stuff"? For how long do you want to stick to that new spending habit? Those are the kind of questions you should ask yourself before setting a goal. 

M for Measurable
If you're goal is to save a lot of money in a year, how will you know if you have reached it? What does "a lot" mean to you? Having a set number as a goal is what is going to help you keep track of how you're doing.

A for Attainablee 
This is all about deciding on a goal you will be able to reach in the not-so-far future. Instead of telling yourself that you will save up for a down payment on a house in 5 years, why don't you make smaller goals for each year until then. Chances are you will get discouraged and give up if you feel like it's taking to long to reach your goal.

R for Realistic
Let's say you decided to save X$ every week and in order to make happen, you can only spend money on necessities. That will not work simply because you will go nuts. It's not realistic to think that you will be fine without these little extras you're used to. If you want this new goal to work in the long run, you have to make sure that you can live like this for an extended period of time.

T for Timely
You need a time frame for your goal or else you will never feel accomplished. If you decide to save 100$ every other week, when will you feel like you have reached your goal? In 3 months, 6 month, a year? 

While making financial goals is not the most exciting thing to do, it can help you accomplish amazing projects so it's worth investing time in.

Were you familiar with the S.M.A.R.T. goals? Have you tried them?


  1. These are all such great tips! I have been trying to be smart with my spending lately so I can get some CCs paid off. Can't wait to put these to the test :-)