Everybody’s financial goals will be individual to them, not the same as their family or friends. So, when trying to create something, you need to ensure you think smart and as an individual. This way, you will create financial goals which are perfect for you. Although it may be difficult, these goals will allow you to achieve what you need to in order to spend and save safely. Having goals which suit you is the key to your financial stability, therefore you need to ensure you consider every aspect of your finances. This includes spending, saving, outgoings and incoming money, basically everything you can think of. This way, everything is more likely to work and be achieved as it is something possible in relation to you as a person.
‘Smart Goals’ were created by George Doran, Arthur Miller and James Cunningham in one of their articles released in 1981 named “There’s a S.M.A.R.T. way to write management goals and objectives”.
S: Specific
You should identify a specific way you can achieve your goals. These goals could be anything financially related which will benefit you. For example, I will add £100 minimum to my savings each month. Or, I will reduce the amount of money I spend on my ‘wants’ each month by £100. Obviously, these statistics and amounts will be personally related to you and your income/spending value. But, giving yourself an overall exact figure to work with will keep you more motivated and allow you to know what you are trying to achieve.
M: Measurable
Measuring your progress and how far you have come is very important. This is because it allows you to reflect on your achievements and keep ongoing. At the end of your journey, you will be able to measure what months went well and which didn’t and hopefully see why. Not only this but measuring your journey will enable you to track your spending too.
A: Achievable
This section focuses on how important a goal is to you and what you can do to make it attainable or achievable and if it will require developing new skills and changing attitudes or bad spending behaviours. This one is meant to inspire motivation, to keep you going in the right direction. Think about how to accomplish the goal and if you have the proper resources, tools, or skills needed to get there.
R: Realistic
As mentioned above keeping your goals realistic is one of the most important steps when planning. The last thing you want to do is set goals which are far too unrealistic. This could lead to you becoming worried or stressed about being able to achieve them. We are not saying to not push yourself, but you need to ensure that they are reachable. They need to be in relation to your current financial position and we calculated from that in order to be realistic. Trying to achieve unrealistic goals could take a turn for the worse. For example, causing you to worry and even find yourself in debt. But, if this, unfortunately, does happen, here at LoanPig we can help you with a payday loan or short term loan to get you back on track. But, before considering a loan, please ensure they are an option which may suit you.
T: Timely
Lastly, ensuring the time scale of your goals is correct is essential. Creating some sort of end target date to important to enable you to have a time scale to work with. Hopefully, when your journey comes to an end you will be able to create new financial goals. These will then relate to your new financial positon. For more information, visit The Money Advice Service.