We are embracing goal setting as an avenue for financial success in this current series. If you missed the last installment, I highly recommend checking it out (you can find it here).
Did you get those personal goals made? I’m certain there were some fun discussions around the dinner table, and if you, like me, were sleeplessly trying to figure out what direction your life is going to take next, I apologize for that. I do promise, though, that if you stick with me through this process, you’ll find those goals will take shape and make a great difference in your life going forward.
Tip: Grab the FREE Personal Goals Worksheet to walk you through this process! Find it HERE.
S.M.A.R.T. Goals
It’s important to know that the actual process of goal setting for financial success doesn’t stop after we’ve made a list. If we actually intend to meet that goal, we need to dig a little deeper and create a S.M.A.R.T. goal, or a goal geared toward producing results. To do so, we need to look at the attributes of a S.M.A.R.T. goal:
Specific
You’ve got a goal and now it’s time to break it down even further. Sure, I wanted to start a blog, but that doesn’t really encompass the goal I had, I needed to be more specific. I want to create a family-oriented blog focused on topics including finance, relationships, and household. More specific? Definitely.
Measurable
How will it look and feel when you attain that goal? If you can’t measure it, you won’t ever be able to say you’ve achieved it, and you won’t really have anything to work toward.
My goal was to have my family-oriented blog up and running within a month, with a plan to post twice weekly. (Of course, there have been more goals to follow.)
Attainable
Is this a goal you can actually achieve? Make sure your goal is attainable, or you will give up before you reach your desired end result. In the case of my blog, it was something I knew how to do, and I was certain I could do it.
Relevant
Why do you want to achieve this goal? Is it related to something you want to see happen in your life? Do you believe it will make you a better person, or be the thing that others around you need? Ask yourself these questions to ensure it’s the right goal for you.
Timely
Every goal needs an end date. Even if it’s well in the future, you won’t be in it for the long haul if you don’t have a date of completion.
Using each of these five criteria to further define your goals will help you to effectively plot out the steps you will need to take to achieve each and every goal you set.
Without measurable goals, there is no drive to become better, to do more, or to meet expectations for yourself and others.
Ineffective Goals
Let’s talk about goals using the example of weight loss (a topic we are probably all familiar with). If you make a goal to lose weight, that’s great. Perhaps you’ve even announced it to your family, friends, and your entire Twitter following as well, as part of a New Year’s Resolution. You got the gym membership, purchased all of those “healthy” protein bars, and have a brand-new workout outfit in your closet.
You start off strong: working out every day, maybe even twice a day, and eating all of the healthy food from your fridge. Two weeks in, you start to notice your pants are fitting a little looser.
You’ve made progress!
In light of that success, you ambition begins to dwindle. Before you know it, you’ve decided to sneak in that piece of cake in the evenings or go back to drinking the bottle of wine you’d grown accustomed to. The gym time falls to the wayside, and before you know it, that outfit you purchased is tucked into the back of the closet, not to be seen again until next year, when you will repeat the same steps again.
Troubleshooting that Goal
The issue with your weight loss plan wasn’t necessarily the plan to lose weight, but that you didn’t make a S.M.A.R.T. goal. “Losing weight” might seem an admirable accomplishment, but if it isn’t a concrete, measurable goal, it’s easy to step away from the entire process when a little bit of success creeps up on you. The same goes for finances.
A better goal might have been to lose five pounds per month for a total loss of 50 pounds by December.
Specific: Yes – an exact amount by an exact date.
Measurable: Yes – check that scale each month.
Attainable: Yes – at one pound per week that shouldn’t be a problem.
Relevant: Yes – it’s all about losing weight
Time Bound: Yes – five pounds monthly with fifty total by December.
While I’ve given the example of weight loss, this SMART technique can (and should) be used for any personal goal you have.
Make Your Goal S.M.A.R.T
Remember that goal setting exercise for financial success you did? It’s time to make them S.M.A.R.T. goals. To do so, make sure they fit into each of the categories listed above. If they don’t or need to be made more specific, make those adjustments now.
Tip: Grab the FREE SMART Goals Worksheet to walk you through this process! Find it HERE.
I highly recommend applying this process to any and all goal you made. These steps don’t just work for goal setting for financial success! Remember, if you plan on achieving these goals and making long-term progress in not only your personal life but finances as well, then you will need to have your goals clearly defined.
Starting to get excited about the possibilities? I hope so. Don’t miss the third (and final) installment in this series: you can find it HERE!
