Set financial goals
How to create SMART financial goals
SMART goals are Specific, Measurable, Achievable, Realistic and anchored within a Time Frame. Applying this method to your finances can help you break down the goal into its key components.
S – State exactly what is to be done with your finances.
M – Outline how you’ll be able to track your progress.
A – Determine the practical steps you’ll take to achieve the goal.
R – Ensure the goal is achievable for your financial situation.
T – Give yourself a deadline for when the goal needs to be reached.
i.e. Long-term financial goal
S – I’ll pay off my mortgage quickly.
M – I’ll need to make the equivalent of an extra month’s repayment each year.
A – I will switch from monthly to fortnightly payments.
R – This goal is attainable according to my income and budget.
T – The timeframe is dependent on the cost of the mortgage and the repayment amount.
