SMART Goals
SMART Money Goals for the New Year
SMART Money Goals for the New Year
[sh_btn link=”https://calendly.com/deasil/15min” target=”_blank” shape=”squareRounded” style=”dimension” size=”extralarge” color=”rgb(27, 54, 156)” bordercolor=”rgb(11, 0, 0)” bordersize=”0″ fontcolor=”rgb(248, 247, 247)” enablehover=”enable” enableicon=”enable” iconbg=”square” iconset=”fontawesome” iconfa=” fa fa-calendar”]Schedule Your 15 min Consultation Now![/sh_btn]
According to Fidelity Investments, one-third of Americans make finances one of their areas to improve in the New Year. Some plan to save more, while others tend to desire to pay down debt.
To aid us in creating financial goals, we will use the SMART acronym to structure our goals for the New Year.
SMART Goals – Specific, Measurable, Attainable, Relevant, and Timely.
Specific
Saying you want to do better with your money is an important first step but it does very little in actually achieving the goals we have set. For us to achieve our goals they have to be specific. Like any good news article, your goals should always describe who, what, when, where, and how you are going to achieve them.
Poor Example – I want to save each month
Better Example – I want to save $100/month by only eating out once a week and bringing my lunch to work. I will use half the money to put towards my ROTH IRA while the other half I will use to pay down my credit card debt.
Measurable
Financial goals are some of the easiest goals to measure because they usually have a dollar amount associated with them. When you create a goal, create a hard dollar figure you can write down and communicate to your accountability partners.
Poor Example – I want to invest in 2019
Better Example – I want to enroll in my employer’s 401-k and contribute to the max of 6%. This means I am investing $50 every pay-period for my financial future.
Attainable
Saying I want to be a millionaire by the end of the year may be a good affirmation exercise, but it does not work well when making a New Year’s resolution. When you create a goal make sure your goal is reasonable.
Poor Example – I want to save $1,000 per month
Better Example – I want to save the money from the extra two hours a week of overtime I plan to put in this year. The extra hours worked will earn me $200 more per month. To automate my savings, I will direct deposit this amount into a separate bank account.
Relevant
Personal finance is what it sounds like ‘PERSONAL”. It is hard to prioritize someone else’s goals because we are all different. Try to understand what is important to you in the upcoming year.
Poor Example – I will not use debt in the New Year
Better Example – I will save $90/month to fund my vacations so I will not have to go into debt next year
Timely
Have you ever had yearly goals, you never get around to, that end up on your New Years’ list every year? To prevent this, you should have goals that have a timetable and check-in dates.
Poor Example – I will pay more attention to my portfolio next year
Better Goal – I will review my portfolio with a financial advisor twice a year
The use of the SMART Goals acronym can set you on a better financial path in the New Year. If you need help setting SMART Goals, please seek the services of a fee-only financial advisor who can make SMART goals for your specific situations.
References
https://www.yourcoach.be/en/coaching-tools/smart-goal-setting.php
Don't miss our next article
Helping subscribers understand complex financial concepts, investment strategies, retirement planning, and more.
Add Your Heading Text Here
At Deasil Wealth Management, we serve as your personal guide to financial success. From one-on-one guidance to inspiring talks, our mission is to help communities thrive by building wealth.
Quick Links
Get In Touch
© All Rights Reserved.
