How To Set SMART Financial Goals

Setting SMART financial goals can help propel you into a life of success and comfort. It's a lot easier to create financial goals than we realize and once we know the different parts of what makes a goal success we are 10x more likely to reach it.

How to set SMART financial goals

Making your ideas something that you can visualize in your head and actively work toward is the core of SMART goals.

SMART goals are one of many methods you can use to get your credit in check, balance your paychecks, and reduce stress caused by financial anxiety.

Related Post: What are SMART Goals and Why You Need Them in Your Life

What are SMART goals?

SMART is an acronym that is used to break down big ideas into manageable parts.






It is a goal setting method used to organize your aspirations while making them something you can do in with your current circumstances. One of the reasons why goals fail or seem unachiebvable is because we want to do something without thinking of what it entitles.

What is NOT a SMART goal?

Let's say you want to raise your credit score but you have 8 different maxed out cards. Your goal, if you don't use the SMART method, may sound like "I'll clear the balances of my credit cards"

But if it were that simple you would of did it already.

You have to buckle down and figure out where your income is coming from, what you are spending money on, and, [if you stick to your budget] how long will this take you to clear the credit cards?

You'll be organized, prepared, and ready to tackle each card.

Related Post: This is why you can't save money

How to set goals

How can I create a SMART goal?

Get specific

There are various examples that you can follow but make a goal that fits your desires and what you can do. Your desires and your goals do not have to be separate.

And you can make changes without turning your life upside down and if everything does start to change try not to resist it. Maybe your current job, circle of friends, or even financial habits are holding you back.

Examples of specific goals

"Save $500 by December"

"Raise my credit score by within 6 months"

"Save for a car downpayment by the end of the month"

"Pay off my loan in two years"

Make sure it's measurable

The SMART goal should clearly be identified as achieved or not.

Yes, I reached my savings goal.


No, I did not bring lunch every day this week.

Examples of Measurable goals

Save $500 by the second week in December.

Notice how this goal now has a time frame. If you save the money and it's after the second week it's still an accomplishment it just wasn't this specific SMART goal.

How to make measurable goals

Be Active

What do you need to do to achieve your goal? The small and big factors that we neglect to consider, make the difference between success and failure. An easy way to think of all the obsta