Think about your financial goals:
Short term – less than 1 year down the road
Intermediate term –1 to 5 years into the future
Long term – 5 to 10 years from now
Remember, to be effective, financial experts suggest that goals be in writing and be SMART:
Specific – Specify plainly what you want to achieve.
Measureable & Mutual – Plan the amount of time and money it will take to accomplish your goal; make sure everyone is “on board” with your goals.
Attainable & Achievable – Be practical; plan goals that can be achieved on your budget.
Realistic & Relevant – Make sure your goal is doable.
Time bound & Tradeoffs – Set a specific date to achieve the goal: think about what you might need to give up or overcome to meet the goal. Is it worth it to you?
Setting goals gives you something to work toward and direction to your spending. It’s easy to get busy with day-to-day life and lose track of spending and planning for goals. Goals keep you focused…write your SMART goals and post them where you and your family can be reminded constantly of your dream.
Can you guess what the top three savings goals of 2013 were? They were saving for:
- an emergency fund
- education
- to pay off debt
See how your financial goals stack up against this top 10 list and keep reading to learn how to focus your goals. Don’t forget to include:
- Today’s Date
- Target Date to Reach Goal
- Total Cost of Goal
- Amount Already Saved Toward Your Goal
- Amount to Save Each Month Toward Your Goal
- Obstacles to Overcome
- Steps Needed to Reach Your Goal
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Author: Kathryn K Dodrill, MA, CFCS, ExtensionEducator, Family and Consumer Sciences; Ohio State University Extension, Washington County; dodrill.10@osu.edu
Reviewer: Cindy Shuster. Extension Educator, Family and Consumer Sciences; Ohio State University Extension, Perry County; shuster.24@osu.edu