Creating SMART Financial Goals

Practically every decision you make has a financial consequence. Everyone and everything is vying for your money. How can you possibly achieve your dreams if you don’t have the money to fund the them? This can be done by setting SMART financial goals that link directly to your dream.

Specific ~ Be specific about what you will do to achieve your goal. If your goal is to purchase a car by the end of the year, what specific actions will you take to start putting money aside to help finance your dream. An example is, I will treat myself to a chai tea latte on Fridays only and not every day. The money I usually use to purchase my daily latte will go into my dream fund.

Measureable ~ Research the market and determine how much it will cost and how long it will take to fund your dream. For example, according to Carmax and Edmonds.com, my dream car will cost $30,000. In order to accumulate a $10,000 downpayment and hold my monthly payments down, it will take me 12 months to save.

Achievable ~ set a daily savings goal that WILL fit comfortably in your budget. For example, I will save $40 per day by packing my breakfast and lunch and by passing on my daily latte. I will place that savings into my dream fund each day.

Realistic ~ set a realistic action plan to take some action toward achieving your goal daily. For example, now that I am packing my lunch, I will use the time I am saving during my lunch period to research financing options and interest rates. Set an appointment with yourself to actually make it happen.

Timely ~ set the exact time when you will begin your financial plan to fund your dream and the exact date when it will end.

The final step is to follow the plan. Being true to yourself means following through in order to achieve the dream you’ve envisioned. With SMART goals, you take charge of your destiny and the impossible becomes possible in just a short matter of time.