Goal investment | Image Courtesy: appreciatewealth.com
People should begin their financial planning by setting SMART goals. Setting goals is important for every type of success and the same goes for financial succession. The SMART goals help to turn your ambitions into clear and actionable steps.
How can you apply the SMART goals to finance? These goals can help you to reduce your debt, save money to make a purchase and make you achieve your investment goals. The full form of the word SMART is:
Specific: You should be clear about what you want to achieve financially.
Measurable: You should quantify your goals so that you can track their progress.
Achievable: You should set goals that are realistic and challenging.
Relevant: You should align your goals with your financial needs and aspirations.
Time-bound: You should set a timeline for achieving goals.
Debt reduction
For example, you may have to pay Rs. 10,000 as debt. Instead of making a goal ‘I have to pay my debt’ you can make a SMART goal like ‘I have to pay Rs. 10.000 in debt by making monthly payments of Rs. 500 over the next 20 months’.
Benefits of setting SMART goals
- They help you to clearly define what you want to achieve and help you to focus on your efforts.
- They guide in making financial decisions and help to avoid unnecessary expenses.
- They keep you motivated and committed as you progress to achieve your goal.
- They help you to get a sense of control over your financial future.
By setting SMART goals for your finances you can plan your finances and move toward financial freedom.
You can start by setting SMART goals and making sure they are relevant to your financial situation. Investing money depending on your financial goals is called ‘Goal investment’. Your financial freedom begins in a single step of setting a SMART goal.
Appreciate offers a trading app that allows you to set investment goals and offers AI-based recommendations for your investment portfolio.