At the end of last year or perhaps at the start of 2022, many of you made a vision board. Well, get that vision board out! Achieving your financial goals relies first on envisioning them and creating opportunities. But, like anything in life, it takes a solid plan of attack to reach the goals you have set for yourself.
Whether you want to pay off debt, build up your savings, save for retirement, or set aside funds to take your dream vacation, setting SMART financial goals in 2022 is key to achieving any money target. SMART goal setting turns undefined intentions into concrete, actionable and attainable plans.
SMART stands for specific, measurable, achievable, realistic, and time-based. Here are some tips on how to set financial objectives using the SMART method:
Specific: State your goal succinctly and clearly. This should be a detailed vision. The more specific your goal is, the more likely you are to plan for it and achieve it.
Measurable: Assign a figure, being as accurate as possible. This could be a numerical number, but it’s a measurement that leaves no doubt about whether or not you’ve achieved your goal.
Achievable: This is where you combine the dream board with realism, ensuring that the goal you have set can be reached and isn’t too lofty.
Realistic: Even if it’s within reach, does it make sense? What are the trade-offs? Is this a goal that will benefit your long-term future?
Time-based: How long is it going to take to achieve this goal? The answer (or estimate) will tell you if it’s a short, medium, or long-term goal. Forecasting important factors like your future income, inflation rate, and the potential return on investment becomes more important the longer your time horizon is.
Setting financial goals doesn’t have to be hard, it should be exciting! Maintaining a solid budget aligned to your goals puts you on a path toward accomplishing your goals!
Atled Financial is here to help if you need a second opinion or want to discuss your financial goals in more detail.
Connect with Delta Jones-Walker and Atled Financial on Facebook, Twitter: @Atled_Financial and LinkedIn! To schedule a complimentary consultation or a presentation to your group or organization, call 219-513-3710 or email [email protected] and mention this column. Topic ideas for this column are welcome!