Make Your Saving Goals “SMART” To Achieve Them Faster

by Ella Ava Financial Expert at Financealoan

Goals keep you motivated; without them, you are less likely to budget to keep a tight rein on your spending. Almost all set a saving goal, but a few of you actually set SMART saving goals. They can accommodate you with an action plan to get rid of debt or stay on top of your expenses when money is tight.

SMART is an acronym that stands for:

Specific	·         What is it aimed at? ·         What steps will you take to achieve it?
Measurable	·         What benchmarks will you use to measure your success? ·         How will you know you have met your goal?
Attainable	·         Is it actually realistic? ·         Are you overambitious about this goal?
Relevant	·         How can other factors come your way to achieve this goal? ·         Do you have relevant strategies to achieve your goal?
Time-based	·         What is the deadline? ·         Will you be able to achieve your goal within the set time frame?

 

How are SMART goals different from regular goals?

A standard goal cannot be specific; it just expresses the desire to set aside money. For instance, “I want to save money.” No defined purpose is involved in this goal. You will be able to save money for a couple of months, but you will give up in the middle due to a lack of motivation. Instead, you should create a specific goal. You must know why you are saving money.

Simply put, setting aside €100 each month for the sake of building savings is a regular goal, whereas setting aside €100 each month for a period of 6 months to get rid of debt is a specific goal. Although the ultimate goal is to save money, SMART goals will give you a specific amount and specific time frame to achieve your goal. For instance:

·         “I will pay €1,000 each month for 12 months to eliminate my credit card debt.”

·         “I will put by €500 each month for 6 months to build an emergency cushion.”

Having SMART goals will help you achieve your goals faster and more smoothly. You will be in control of your money even in tough times. However, if you still need doorstep loans in Dublin, for example, they will not pose a threat to your finances.

Tips to achieve a SMART goal

Here are the tips to achieve a SMART goal:

·         Decide what you want to do

It is vital to focus on the endpoint of your goal. It is much easier to achieve your goal when you know where you have to start. For instance, if you want to eliminate your debt, you must know the starting point, meaning whether you want to start from high-interest debts or debts with a small amount. Likewise, you should know what you will use it for if you are saving. In simpler words, the more specific your goals are, the better it is.

·         Assess your available cash

You decide to set aside a particular sum of money each month to achieve your goal. This could be possible only when your budget allows for it. Look over your budget to see how much cash you need for other expenses. You may have to trim down your discretionary expenses as well to release some money from your budget. You will decide the time frame based on the sum of money you stash away every month.

·         Set a realistic timeline

To set a realistic timeline, you should divide the total money you want to achieve your goal by the sum you can lay aside every month. Giving some leeway to tackle unexpected expenses is crucial if they crop up. Using each penny of your available cash will cause problems otherwise.

·         Set milestones for larger goals

Achieving your large goals can be challenging. For instance, you may find it daunting to stow away €10,000 to clear your credit card debt. You should set a target to save €2,000 every quarter. This will help you stay on the track. You will find it less hard to achieve your goal when you set milestones.

·         Measure your progress and fine-tune your budget

You will have to track whether you are advancing towards your goals. Treat yourself as you achieve your first milestone. This will keep you motivated. Do not forget to fine-tune your budget when you face any complications in achieving your goals.

The bottom line

SMART goals are easier to achieve as you know how much amount you need to stash away for a specific period of time. You can set smaller milestones to achieve your long-term goals. In order to set your specific goals, you will have to look over your budget. Take help from a financial consultant if you do not know where to start.

The best part of these goals is that you can avoid relying on debt for recurring expenses. In case of emergency, you can borrow from money lenders in Dublin at lower interest rates.

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Created on Jun 16th 2023 08:11. Viewed 103 times.

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