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Financial Goal Setting: A Guide Using the SMART Framework
New year, new goals — as 2024 starts unfolding, now is the perfect time to set clear, measurable goals for your money aspirations.
Use this easy guide and follow the SMART framework to set Specific, Measurable, Achievable, Relevant and Time-bound goals.
Get Specific
Being clear on what your goals are is key for success. For example, instead of general goals like “save more money than last year” — be more intentional and specific in what you want your outcome to be. Consider goals like “save $3000 for a Guaranteed Investment Certificate (GIC).”
Goals that are doable financially and make you money in the long run just make sense.
Measurable Milestones
Goals where you can track your progress and success along the way are best. For example, if you’ve got larger objectives in mind — like paying off a business or student loan by year-end — break down these goals into bite-sized, achievable milestones.
Let’s say you know exactly how much is left on your loan — from there, take a look at your current salary and expenses, then set specific weekly, monthly or quarterly goals to make those debt payments as easy as possible.
Achievable Targets
For success to happen, it’s pertinent that goals are realistic and attainable based on your current financial situation. One of the biggest obstacles to your goals could be expectations that are too high.
Make sure you’re looking at all your expenses, income and resources before setting achievable targets that’ll keep you motivated.
Relevance
Do your new goals reflect your overall financial plan? Whether investing in property or retirement — double-check that they will ultimately complement your life and/or business objectives.
Time-Bound
Adding a timeframe to goals gives them a sense of urgency and will provide more of a structure to achieve them. For example, rather than saying “save $5000 in 2024” — set a deadline per month such as “put away $417 per month for 12 months.” This will keep you on track and keep your financial goal top of mind.
Need advice for financial resolutions? Contact us! We help with customized accounting, auditing and taxation needs — 780.461.3800.
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