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When you sit down to think about your financial goals it’s important to remember that famous acronym SMART. This has been around seemingly forever, but it was first coined by George T. Doran in 1981 in a piece he wrote for Management Review. SMART lays out several criteria for attributes that our goals should have, whether they be business management goals, goals for our personal life, or financial goals.
Since this is a Personal Finance blog I’m going to approach it from that angle, but be aware than any goal you set for yourself will be more effective if you keep these SMART criteria in mind. The letters each stand for a guiding attribute that you should identify when setting your goals. I’ve spelled them out below:
S - Specific
M - Measurable
A - Attainable
R - Relevant
T - Time-bound
First, let’s get Specific. This attribute serves to remind us that vague goals get us nowhere. Saying that you want to get your finances in order is a good sentiment, but a horrible goal. Setting a “goal” like that sets you up for failure because you never know when/if you’ve achieved it. The meaning behind it is so abstruse that it doesn’t point to any actionable changes you can make. So make your goal specific. If getting your finances in order means several different things to you, then break them down into several goals if necessary. Paying off debt and saving for a new car are two specific goals. Just make sure you run these goals through the rest of the criteria to get a complete goal. Specificity is only one of five dimensions here.
Next, the goal needs to be Measureable. You have to be able to track your progress and you have to be able to say when you’ve accomplished your goal. If paying off debt is your goal, then what is the current balance of that debt? If you’re saving for a new car, what is the amount that you plan to put aside for that purpose? That becomes the measure of that goal.
In my next post I’ll talk about the remaining attributes in the SMART framework.
What else can I help you with?
Where can one go to get a certified financial planning consultant?
Certified Financial Planning consultants are widely available at many brokerage firms and financial planning agencies such as Financial Planners Respond or Smart Money.
Financial mission statement?
A financial mission is a statement of one's goals regarding money- how you want to save, spend, and prepare for the future financially.
What is the financial position of Wells Fargo financial institution?
Financial Adviser or the 'financial position' is just one of many employment opportunities at Wells Fargo financial institution. A Financial adviser helps you reach your financial goals within the banks branch.
Where can one get help with setting financial goals?
There are quite a number of places one can go to get help with setting financial goals. One great place would be contacting someone who is good with math and time management such as an accountant to give advice. Another would be some financial goal tips and tutorials such as MoneyManagement, CPCRI, Bucks Blogs, and FrugalLiving.
One of the goals of the first English colonies in North America was?
search for gold
Which is one reason that people place money in investments such as stocks?
They hope they will be able to reach their financial goals.
Do you pay zakat on stocks as part of your financial obligations?
Yes, zakat is typically paid on stocks as part of one's financial obligations in Islam.
What is a smart folder on a mac?
A smart folder is part filter and part folder. For further information on how to create a smart folder go to your desktop select the help menu and type smart folder into the dialog box. This will display all the information the Operating System has on what a smart folder is, how to create one and what uses it can be put to.
Why is working in financial services important?
To help keep it honest. Financial services is one of the fastest growing industry. Working for a financial services firm may well help you better understand your financial goals and hopefully help you to achieve them.
Who owns the SmartMoney company?
The Smart Money company is not owned by any one person. Smart Money is a magazine publisher in all things financial. The current CEO of the company is John Menzer.
What are some online financial planning guides?
Financial planning online guides are guides that help one make short and long-term goals for financial spending. This also includes financial analysts who review companies and make reports based off of financial performance.
What is a key part of a business plans?
method of achievement,social mind,strength of work,team management.All these are necessary but major one is money investment. The financial pro formas are a key part of any business plan, especially the cash flow statement. This statement will tell the company how much cash is needed to reach the goals for which the statement is prepared, i.e., 5 year goals.
