We all have dreams when it comes to money: less stress, more savings, financial freedom, or maybe just peace of mind. Turning these dreams into reality requires more than wishful thinking! It takes clear, intentional goals! That is where S.M.A.R.T. financial goals come in. Let's break down how to create them!
What are S.M.A.R.T. goals?
S.M.A.R.T. stands for:
- Specific
- Measurable
- Achievable
- Relevant
- Time-Bound
Creating S.M.A.R.T. goals works because it turns broad goals into realistic action plans, specific to your needs!
Step-by-step: turning a dream into a S.M.A.R.T. goal
Let's take a common goal, "I want to pay off debt," and make it S.M.A.R.T!
- Specific: What exactly do you want to accomplish?
- "I want to pay off my $3000 credit card balance."
2. Measurable: How will you know you're making progress?
- "I'll track each payment and remaining balance, monthly."
3. Achievable: Can this realistically happen with your current income, expenses, and timeline?
- "I can afford $250/month if I cut back on eating out."
4. Relevant: Does this goal align with your values and overall plan?
- "Paying off debt will free up money for saving and reduce stress."
5. Time-Bound: What's your deadline?
- "I will pay off the balance in 12 months."
Here is the S.M.A.R.T. goal that was created: "I will pay off my $3000 credit card by making $250 payments each month, starting this month and finishing within 12 months."
Examples of other S.M.A.R.T. goals:
- Save $2500 for a Summer vacation by June 1st by transferring $125 from each biweekly paycheck
- Pay off $1200 in medical debt by December by making $200 monthly payments
- Increase TSP contributions from 5% to 10% by the end of the year to boost retirement savings
- Save $4000 for a used car by saving $500/month for the next 6 months
- Track every dollar I spend for 30 days using an app, so I can identify patterns and build a realistic budget
Pro Tip: Break down big goals
If your goal feels overwhelming, try breaking it into smaller checkpoints.
Example: "I want to save $10000" becomes:
- $500 in 1 month
- $1000 in 2 months
- $2000 in 4 months
Small wins add up fast and boost your confidence!
Ready to write you own?
Ask yourself:
- What do I want to change?
- How will I track progress?
- What's realistic for my current situation?
- Why is this goal important to me?
- When do I wan to accomplish it?
Then, build your S.M.A.R.T. goal!
At Walters Financial Wellness, I can help you:
Setting goals is just the beginning. Sticking to them and adjusting them when life happens, is where financial counseling can help!
- Set meaningful, realistic goals
- Create a plan that works for your life
- Stay motivated and accountable along the way
Schedule a consultation today!