Set SMART goals for your financial future

It is likely that you have set goals, such as graduating from high school, getting a part-time job or even applying for college without thinking much about the goal-setting process. Now is the time to focus on the goal of saving money for your future.

Use the acronym SMART to remember these simple goal-setting guidelines. Your goals should be:

• Specific — State one clear outcome and the estimated amount of money needed.
• Measurable — Use benchmarks and identify what kind of evidence you’ll have when the goal is attained.
• Achievable — Assess your likelihood of reaching the goal by examining your circumstances and resources.
• Realistic — Make sure the goal is relevant and meaningful to your values.
• Time-bound — Set target completion dates and milestones throughout to measure progress.

For example, a SMART goal could be stated as,

“To go on spring vacation, I will save $1,000 in a savings account. I will contribute $40 each week for 25 weeks.”

Sharing your goals with a friend and setting specific check-in dates to celebrate your successes also can help keep you on track. Keep in mind that goals can change, depending on life’s circumstances.

There is no set way to decide which goals are the right ones. Use the LifeValues Quiz Links to an external site. to discover your values and their influence on your financial decisions to set goals that have meaning for you.

 

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