Do you have big dreams that require having money, such as traveling the world or buying a house to call your own? We all have dreams for the future, but some of us simply cannot afford them right now. However, there are steps you can take to get closer to those big dreams financially. The first step is to set realistic goals. Setting realistic financial goals can help raise the odds of achieving them.
How to Set Financial Goals for Yourself – The S.M.A.R.T. Way
S.M.A.R.T. stands for Specific, Measurable, Attainable, Realistic, and Timely. Figuring out where you stand in all steps of a S.M.A.R.T. goal is how you can make it easier to attain your short and long-term financial goals.
- Set goals that are well-defined and clear as day. Get as specific as you can when setting your goals so you can achieve exactly what you want to achieve.
- You should be able to measure the success of your goals. This will give you a better understanding of how long it should take to achieve your goal, and the progress you’re making along the way.
- Your goals should be possible to achieve. Setting a goal that you will win the lottery is fun, but not necessarily attainable within your control. Choose a goal that you will have the power to achieve on your own as opposed to a goal with variable factors beyond your control.
- Your goal should be within reach and relevant to your purpose. They should challenge you, but you should be able to overcome the challenges that come with meeting realistic goals.
- In order to measure your goals, they must have timeframes and deadlines. Include a start date and a deadline for your goals.
Examples of Realistic Financial Goals
After you’ve become familiar with S.M.A.R.T. goals, you can start to set realistic financial goals for yourself, such as:
- Creating a budget. Keep all your goals on track by preventing overspending. You can create a budget with the 50/30/20 rule and budgeting approach in mind. This is where you allocate 50 percent of your income toward your necessary expenses, 30 percent toward your wants, and 20 percent toward your future financial goals, such as debt repayment, savings, and retirement funds.
- Building an emergency fund. Emergency funding can act as a safety net during an unexpected financial situation. At MaxLend, we suggest saving up enough money to cover at least three months of expenses.
- Paying off your debt. A realistic financial goal is paying off credit card debt or other money loans you’ve received. For example, you can set a goal to pay off your credit card debt in 90 days.
- Saving for retirement or college funds for your children. This is a long-term financial goal, as it’s never too early to begin saving for retirement.
After you’ve determined your financial goals, write them down and hold yourself accountable for contributing to them each and every day. Continue to check-in and monitor your progress. Once you’ve achieved a goal you’ve set for yourself, enjoy and move on to the next one!
When you’re in need of emergency funds, MaxLend offers an alternative solution to payday loans. You can apply for cash online and find out if you’re approved for an installment loan of up to $3,750 with MaxLend. For more information about obtaining cash loans online, contact us by calling 877-936-4336. We’re available 24/7.
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