What is the “SMART” method, and why is it important?
The “SMART” method is a tool that can help you set financial goals and stay motivated to accomplish them. “SMART” goals are …
- Specific – define what you want to achieve (a vacation, emergency fund or new phone).
- Measurable – determine how you will measure your success (balance in a bank account or cash in a cookie jar).
- Attainable – is it realistic? If not, adjust it to set yourself up for success.
- Relevant – is this goal something YOU want? You will stay more motivated to reach your goal.
- Time bound – what time frame will you use to break this goal into manageable pieces? Having a monthly or even weekly timeline for your goal will help you stay on track. Even if something comes up and you get off track and can’t save one payment, you can still see the end in sight. You can also adjust your timing if you receive extra funds.