Goals are the foundation for plans of action. They often are personal, but can be professional as well. It is good to set both long-term and short-term goals. A long-term goal might be saving money to go to college. Setting and achieving goals can be easy if you set SMART goals.
SMART goals have 5 characteristics
Goals must be....
- Specific: "Get out of debt is too boroad,while pay off your credit card is specific."
- Measurable: "Paying an extra $30 a month towards your credit card is measurable --- you can see each month that you are working towards your goal."
- Attainable: "If you pay an extra $30 a month, can you reach your goal? "
- Realistic: "Is it possible to pay off your credit card?"
- Time bound: "Paying off your credit card has no time frame, but paying off your credit card in the next 12 months has a deadline."
Our priorities influence our goals, what we do with our time, and even how we spend our money. We have many goals and a limited amount of time in which to accomplish them. Therefore, it is important that we develop a plan to help us achieve our goals.
Financial planning is an ongoing process that changes over time, especially when major changes happen in one’s life, such as going to college or buying a home.
Financial planning is an ongoing process that changes over time, especially when major changes happen in one’s life, such as going to college or buying a home.
