SMART goals are a method to set specific, measurable, achievable, realistic, and time-bound objectives. They help you stay focused and organized, making it easier to track progress and accomplish your goals.
How to write SMART financial goals
Have you ever dreamed of saving enough money to buy a car, travel, or retire comfortably? These are examples of financial goals. Financial goals can help you plan your budget, track your progress, and stay motivated.
But not all financial goals are created equal. Some goals are vague, unrealistic, or hard to measure, which can make them difficult to reach. For example, saying "I want to save more money" is not a very helpful goal, because it does not explain how much money, why you want to save, or when you need the money to be saved by.
A better way to write financial goals is to use the SMART method. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. These are five criteria that can help you make your goals clear, realistic, and trackable.
Let's look at each one in more detail and turn the basic goal of, "I want to save money" into a SMART goal.
S-Specific
A specific goal tells you exactly what you want to accomplish. This means that when you set a goal for yourself, you should try to make it as detailed as possible. By making your goal specific, you know exactly what you need to do in order to achieve it.
For example, we can make our goal specific by changing it to, "I want to save money for an emergency fund".
M-Measurable
A measurable goal tells you how you will know if you are making progress or if you have achieved your goal. It answers the question: How much or How many. A measurable goal helps you monitor your performance and celebrate your success.
For example, we can make our goal measurable by changing it to, "I want to save for an emergency fund."
A-Achievable
An achievable goal tells you if your goal is realistic and possible, given your current situation, resources, and abilities. It answers the question: How can I do it? For example, the goal of saving for an emergency fund is achievable, if you have a steady income, a budget, and a savings account. An achievable goal challenges you but does not overwhelm you.
For example, we can make our goal achievable by changing it to, "I want to save for an emergency fund by saving per paycheck."
R-Realistic
A realistic goal is something you believe you can reach or accomplish. It's something that fits into your life, your abilities, and your resources, but it also takes into account your limitations. For instance, if you earn a week, saving a week might not be realistic. But saving could be!
Achievable and realistic may seem similar but they have slight differences. When a goal is achievable, it means you have the skills, resources, and abilities to reach it.
For example, if we look at our previous achievable statement "I want to save for an emergency fund by saving per paycheck. Since you have a job, this goal is achievable. But if you have bills, food and other essentials, and maybe also want to hang out with friends occasionally, saving each paycheck might not be realistic. So, you may change the amount to a smaller one, or change the statement to "I want to save for an emergency fund by saving every other paycheck.
T-Time-bound
A time-bound goal tells you when you want to achieve your goal or what is your deadline. It answers the question: When will I do it? A time-bound goal helps you create a sense of urgency and accountability.
For example, we can make our goal Time-bound by changing it to, "I want to save for an emergency fund by saving per paycheck for weeks."
FAQs
A better way to write financial goals is to use the SMART method. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. These are five criteria that can help you make your goals clear, realistic, and trackable.
What are the SMART goals George Doran article? ›
The term was first proposed by George T. Doran in the November 1981 issue of 'Management Review', where he advocated for setting objectives that are Specific, Measurable, Assignable, Realistic, and Time-bound—hence the acronym S.M.A.R.T.
What are SMART goals in Khan Academy? ›
SMART goals are goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. These goals help us stay focused and make it easier for us to achieve what we want. Created by Sal Khan.
What are the 5 SMART goals PDF? ›
- S Specific. What am I going to do? Why is this important to me?
- M Measurable. How will I measure my success? How will I know when I have achieved my goal?
- A Attainable. What will I do to achieve this goal? How will I accomplish this goal?
- R Relevant. Is this goal worthwhile? ...
- Time-Bound. When will I accomplish my goal?
Doran, G.T. (1981) There's a SMART Way to Write Management's Goals and Objectives. Journal of Management Review, 70, 35-36. - References - Scientific Research Publishing.
What are the 5 SMART goals realistic? ›
Setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives is a good way to plan the steps to meet the long-term goals in your grant. It helps you take your grant from ideas to action.
What is a SMART goal scholarly article? ›
The SMART model of goal planning recommends that practitioners consider several aspects of goals that promote positive outcomes [6], commonly that goals are 'specific', 'measurable', 'achievable/attainable', 'realistic/relevant', and 'timed' (SMART) [5].
What is an example of a SMART goal statement? ›
An example of a SMART-goal statement might look like this: Our goal is to [quantifiable objective] by [timeframe or deadline]. [Key players or teams] will accomplish this goal by [what steps you'll take to achieve the goal]. Accomplishing this goal will [result or benefit].
What is an example of a SMART goal for writing? ›
A Few Examples of SMART Writing Goals
- “I will finish my novel manuscript by the end of the year.”
- “I'll set aside 15 minutes in the morning to write, at least 5 days a week.”
- “I'll have an outline of my memoir completed by July 1.”
A better way to write financial goals is to use the SMART method. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. These are five criteria that can help you make your goals clear, realistic, and trackable.
Start by making your financial goals “SMART” goals. SMART is an acronym for Specific, Measurable, Attainable, Realistic, and Time-related. In other words, financial goals should have a definite outcome and deadline and be within reach, based on your personal income and assets.
What are 3 specific SMART goals? ›
10 examples of SMART goals
- Specific: I'd like to start training every day to run a marathon.
- Measurable: I will use a fitness tracking device to track my training progress as my mileage increases.
- Attainable: I've already run a half-marathon this year and have a solid baseline fitness level.
SMART goals answer the five W's; who, what, where, when, and why. The acronym is specific, measurable, achievable, relevant, and time-bound.
How do you write a SMART goal for dummies? ›
To write a SMART goal, simply define each component in the SMART acronym. Go in order, and ensure that your proposed goal is specific, measurable, attainable, relevant, and time-bound. If it doesn't meet each of these criteria, slowly refine it until it does.
What is the SMART goal template? ›
A SMART goal meets the criteria of the terms of the acronym SMART: Specific, Measurable, Attainable, Relevant, and Time Bound. five "W" questions: What: What do I want to accomplish? Why: Specific reasons, purpose or benefits of accomplishing the goal.
What are the SMART goals and what do each mean? ›
What are SMART goals? The SMART in SMART goals stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. Defining these parameters as they pertain to your goal helps ensure that your objectives are attainable within a certain time frame.
What are SMART goals in the act? ›
What are SMART goals? SMART stands for specific, measurable, attainable, realistic, and time-bound. These guidelines can help sharpen your focus in the short-term so you can reach your end goal! Specific: Your goal is direct and detailed.
What are Jung SMART goals? ›
SMART stands for: Specific; Measurable; Attainable; Routinebased, realistic or relevant; and Time-bound (Jung, 2007) . ...
