If somebody asked you what your financial goals are, would you be able to articulate them? We set goals for ourselves in almost all arenas of our lives from our careers to our exercise habits, and our finances should be no exception. Whether you’re aiming to pay off your credit card debt, increase your retirement savings, or would simply like to have some extra money in your pocket, there are many types of financial goals. You may have a general idea about where you’d like to be financially in the future but the way in which we set goals is as important as the goal itself. The following guide will help you map out your financial goals using the SMART method and provide tips for how you can best achieve them.
Short-term financial goal
S – I will save $1000 to buy a new phone
M – I will open a separate account to deposit and view my savings in.
A – I will set up an automatic transfer that puts $100 of my pay check into my savings account every fortnight.
R – This goal is attainable according to my income and budget.
T – In 20 weeks I will have achieved the goal.
Mid-term financial goal
S – I will save money for a down payment on a house.
M – I will need to save 10% of the property’s purchase price to achieve my goal.
A – I will open a savings account with a high interest rate and make monthly contributions of $500.
R – This goal is attainable according to my income and budget.
T – The number of months it will take to achieve the goal can be calculated by 10% of the property’s purchase price divided by $500.
Long-term financial goal
S – I will pay off my mortgage more quickly.
M – I will need to make the equivalent of an extra month’s repayment each year.
A – I will switch from monthly to fortnightly payments.
R – This goal is attainable according to my income and budget.
T – The timeframe is dependent on the cost of the mortgage and the repayment amount.