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What Does it Mean to Make A SMART Financial Goal?

What Does it Mean to Make A SMART Financial Goal?

When you want solid financial goals that you know you can achieve, the SMART goals are the way to go. Not only can SMART goals simplify the process, but they can also make your goals manifest faster with small practical steps. Depending on your situation, you might be able to start taking some of these steps today. However, if your financial situation is bringing you to bankruptcy, you may want to ask a Chattanooga bankruptcy attorney for guidance.

HOW TO CREATE A SMART FINANCIAL GOAL

Creating a SMART financial goal starts with knowing what the SMART acronym stands for. This acronym stands for specific, measurable, attainable, relevant, and time-bound. You can use these terms to construct practical financial goals with specifics on how to achieve them.

Making your goal specific means narrowing your focus on what you want. You can start with a broader financial goal and then break that goal into smaller and more specific goals. To achieve your broader goal, you need these smaller goals to be relevant to that goal. This is where the term relevant comes into play because you will not make much progress with smaller goals with no relation to your main goal.

Measurable goals are simply goals you can measure. Having financial goals makes this easier since you are measuring your progress with money. Write out exactly how much money you need saved for each goal and then ask yourself how attainable this is. The term attainable plays a huge role in determining how realistic your goals are. Being humble in this step will almost always lead to success.

Lastly, make your goals time-bound. Set a deadline for each goal leading up to the ultimate deadline for your broader goal. Doing this holds yourself accountable, can serve as motivation, and will give you a sense of when your goal will be accomplished.

USE A GOAL CHART

You can also create a goal chart to help you track your financial SMART goals. Take one of your SMART goals and determine whether this goal is short-term, mid-term, or long-term. Once you know this, calculate how much money you need to achieve this goal within a month or year.

Then look for obstacles that could slow down this goal. Write out ways to overcome these obstacles and ways you can achieve your goal. This might be cutting expenses or side jobs. The three main types of goals will help you figure out your timeline.

Short-term goals take less than a year. Mid-term goals take up to five years maximum. Long-term goals take over five years to achieve. Labeling your goals will help you simplify the overall process and can make larger goals seem less overwhelming.

BANKRUPTCY ATTORNEY IN Chattanooga, TN

Finding out you might have to go through bankruptcy can be terrifying. Feel free to call us at Tom Bible Law today at (423) 690-7712 to ask any questions you may have about bankruptcy. Our experienced legal team of Tennessee bankruptcy lawyers might be able to help you figure out the best bankruptcy options for your situation. You can find us in the Tennessee cities of Chattanooga and Tullahoma.