SMART Goals Can Help Improve Your Finances

SMART goals consist of setting specific goals that reflect evolution, are attainable, and developed within a specified period of time. Learn how they can help you manage your money here!
SMART Goals Can Help Improve Your Finances

Last update: 16 April, 2021

Today’s article will describe how SMART goals can help you find a solution to your finances. This is because these are fundamental to clear income and expenses and to be able to meet your objectives.

As you can see, saving money is becoming an important daily activity but many people find it difficult to implement it.

Is this your case? Are you ready to be in control of your finances?

Saving money is almost impossible when people only focus on instant gratification. This is because they focus their attention on constant wants, fill themselves with unnecessary items and spend more than they have.

It’s important to focus on everything they want to obtain and accomplish. That’s the way to visualize themselves in the short, medium, or long term at a personal, family, and professional level.

What are SMART objectives?

These are concrete, clear, and thoroughly analyzed objectives and each letter of the acronym has a meaning that helps understand the characteristics.

Let’s explain each of them below:

  • S means the objective has to be specific, that is, what you want to achieve must be clear
  • M indicates the objective must be measurable, this means there are statistics or strong elements to verify how much progress you’ve made and how much remains to do
  • A implies the objective must be achievable. The aim here is nothing is adrift and there’s a certainty that the objective is attainable
  • R objectives must be relevant since what’s always sought is for new experiences to represent progress in life
  • T expresses the objective must be fulfilled within a stipulated time so you don’t leave the moment of your life in which you want to achieve what you’ve set to chance and define the necessary rhythms
A woman writing down her SMART goals.
Drawing up a plan of objectives is an intelligent solution for organizing one’s life.

Why is it important to learn to save money?

Learning to save is a transcendental process to promote financial responsibility as you shouldn’t spend every cent you earn. This reduces the risk of being left on the edge.

This allows you to acquire habits to only spend it on what you really need. It’s no secret that the economic situation can vary. In fact, there are comfortable and complicated moments when it comes to finances.

Thus, savings allow you to make it through rough times because it’s a backup to which you can turn to. Financial savings accumulate the resources with which to carry out new dreams and not remain in the vicious circle of unnecessary spending and few ambitions.

Furthermore, learning to save implies including SMART objectives in your own personal life. This is because these are decisive for consolidating investments, projects, and successful financial health.

SMART tips to improve finances

SMART objectives make people take their goals seriously and not leave them as just words or vague ideas that seldom transcend.

These are key so that all the proposals that flow and taken into account, begin to materialize and be assigned a work plan that allows referencing if they’re achievable. Here are some tips that can greatly help your finances.

1. Write down your SMART goals in a visible place

Making a list of all the projects you can think of allows you to always be aware of your aspirations. It reminds you that you want to progress further.

Writing down your goals is also a key activity to diagram everything you want to accomplish. Also, to determine what’s the deadline to achieve them. In addition to this, it helps recognize the highest priority needs.

2. Keeping track of money

It’s essential to keep a record of all the income you receive to be able to have clarity on the total amount you collect and note how you use the money.

Through this activity, you can be clear on how much you need for essential expenses. Also, how much you’re going to save and how much you owe — if you have any debt.

3. Evaluate savings methods

There are multiple saving methods and people are implementing more and more of them to find the best alternative for their welfare.

Have the interest to explore, inform and educate yourself about each of the consolidated savings processes. From this, you can acquire the best basis for analyzing whether the best decision for your finances is to invest, keep your money in the bank, create a fund or make alliances.

Three coin stacks and a few pens.
Having SMART savings is about knowing how to invest them so they generate profits while you figure out how you want to use them.

4. Establish daily SMART goals

This is crucial to always be clear about where you have to go to achieve your goals. It’s a positive exercise so that each day is an advance and save the money you allocated from the beginning of the process.

SMART goals can strengthen your habits and responsibilities

You must learn to let yourself be carried away by the objectives and not by marketing bait to avoid unnecessary expenses. Deciding to start immediately with new habits is a priority.

Also, you have to think of saving as an advance, and not as a sacrifice. This is because the money you save is positive for the stability of the future. The task becomes more bearable with SMART objectives.

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  • Olmedo Figueroa Delgado, Luis, Las finanzas personales. Revista Escuela de Administración de Negocios [Internet]. 2009; (65): 123-144.
  • Steffens G. Cadiat A. Los criterios SMART: el método para fijar objetivos con éxito [Internet]. (S.L): 50Minutos.es; 2016 [citado 02 de marzo de 2021]
  • López J. Las finanzas personales, un concepto que va más allá de su estructura [Internet]. Pereira: Facultad de Ciencias Administrativas de la Universidad EAFIT, 2016 [citado 02 de marzo 2021]