Setting financial goals will help you stay on track with a financially responsible future. It is important to set short term (new computer, weekend vacation), medium term (new car, buying a house, wedding), and long term goals (retirement, vacation home) and to write them down. By writing down your goals, you give them clarity and focus. Review your goals throughout the semester or year to not only reaffirm what your goals are, but to ensure the goals are still relevant. With the passing of time, you may find that your goals have changed or evolved–and that’s okay! Just rewrite your goals as they develop. Writing them down in a powerful reminder you can use to keep yourself accountable and to attain greater success in your financial life.
Additionally, when writing your goals, remember to make S.M.A.R.T. goals.
A S.M.A.R.T goal is:
Example of a S.M.A.R.T. goal:
|Specific||Save $15,000 for a used Honda Civic|
|Measurable||Save $625/mo for 24 months|
|Attainable||Cut costs, sacrifice, sell unwanted items, save tax refund|
|Realistic||Give up cable tv to save $50, reduce dining out to save $100/mo, sell items on Craigslist|
|Timely||2 years from today (vs. 3-5 years of car payments with interest)|