Are you overwhelmed by the multitude of financial priorities vying for your attention? Setting smart financial goals is crucial for securing your future, but knowing where to start can be challenging. Here’s a guide to help you prioritize your financial goals effectively.
How to make smart financial goals
Setting financial goals is much like planning a journey. Begin with your current financial status and determine your destination—where you want to be financially. Use the SMART criteria (Specific, Measurable, Attainable, Realistic and Time-related) to set clear goals. Whether you’re saving for college, buying a house or planning a down payment for a car, having a clear objective is essential.
Make a plan and automate itStructured planning is key to achieving financial goals. Set aside a portion of each paycheck for savings. Automate this process through direct deposit to ensure consistency. When saving, think in smaller, manageable amounts. People are more inclined to begin saving when they think of it as $5 per day rather than $150 per month.