Chalee Crouch, CFP ®
Sr. Vice President & Financial Advisor, LPL
SMART:
-Specific
-Measurable
-Achievable
-Relevant
-Time based
Setting a specific goal for example instead of “I would like to have more financial freedom”, try “I will pay off my credit card in the next 12 months”. Or “I will save $5,000 for a down payment on a car in the next 12 months”.
Make it measurable, use real numbers, instead of I will pay extra each month on my credit card, use a specific number. I will pay $208 every month plus interest to pay off my $2500 credit card balance in 12 months.
Don’t set yourself up for failure, consider your income, debt and lifestyle to make your goal achievable.
Be reasonable, a relevant goal should be closely connected to your situation. A young person may be more focused on student loans and buying a car, where young adults with a family may be more focused on housing, retirement and education savings.
Specify a timeframe for your progress, set milestones and due dates. Set reminders on your calendar to make sure you stay on track and keep yourself accountable. Maybe include a friend, family member or trusted advisor if you operate better with a cheerleader.
No matter what the goal is always remember to be “SMART”!
Category: Wealth Planning
