Introduction: What are SMART Goals?
Goal-setting is a critical component of financial planning. It is a road-map to success that may lead you to a higher level of financial security, freedom, and literacy.
Scenario 1:
Imagine taking a road trip with no purpose and no destination in mind, you might enjoy the freedom of changing courses several times, but your journey could be convoluted with useless stops and wasted resources.
Scenario 2:
Imagine a well-planned road trip with researched visits, useful stops, and pleasant destinations that meet most of your expectations. You would still have the freedom to take detours and impulsive stops, but you could always get back on track and keep moving forward.
Imagine applying these two scenarios to your financial life. The first would be a nightmare you would not want to be caught in, and the second would be every individual's dream of retiring on a sandy beach with plenty of financial resources.
Now that you know the importance of goal setting - before you plan you need to picture the destination. Think of paying it forward and discuss real examples of the importance of setting financial goals in life with a friend or a family member.
For successful goal-setting, you can follow five steps listed below. Let's get started!
Chapter 1. Purpose, types, and terms of goals
Chapter 2. Key elements of effective goal setting
Chapter 4. Practice setting SMART financial goals
Chapter 5. Ways to commit to and achieve goals