Goal setting does not come naturally to me. Because it does not come naturally to me, I tend to work harder at setting goals that are SMART.
S – Specific
M – Measurable
A- Agreed Upon
R – Realisable
T – Time Based
In short these are goals that I think I can achieve without Sweating It! The intent here is to chunk your goals out in such a way that they are practical as well. Alright so what can a financial goal be.
As an example:
- Reduce my utility bill:
- The next step here is to list action items that could help you achieve that goal, such as: Step 1 – Make a list of competitors and contact the competitors for price quotes. Step 2 – Contact the utility company and ask them about deals and tell them about your research to bring price down.
- Make wise investment choices: ….
You get the picture.
Complete the action items and look back to see how much you saved or earned as in examples 1 and 2 above.
I would recommend, getting a holistic picture of your finances first, before setting any financial goals. You can do this by creating like an income expense report that includes all your assets as well.
There are some really great videos out there that detail how to come up with financial goals.
Just enter ” setting financial goals” as your search criteria and you will see a hole bunch of videos.
I would love to hear from you on how you set your financial goals and how you measure your goals.