Get SMART About Your Budget!

Budgeting can sometimes feel like a chore, particularly if you had a tough month where you spent more than you wanted to. Seeing every transaction pile up can be disheartening. Don't get lost in the weeds with how you're doing – get back on track with why you're budgeting!

Whether you want to pay off debt, build up your savings, save for retirement, or set aside funds to take your dream vacation, setting SMART financial goals is key to achieving any money target. SMART goal setting turns undefined intentions into concrete, actionable and attainable plans.

SMART stands for specific, measurable, achievable, realistic, and time-based. Here are some tips on how to set financial objectives using the SMART method.

• Specific: State your goal succinctly and clearly. This should be a detailed vision. The more specific your goal is, the more likely you are to plan for it and achieve it.
• Measurable: Assign a figure, being as accurate as possible. This could be a numerical number but it's a measurement that leaves no doubt about whether or not you've achieved your goal.
• Achievable: Try to set an aggressive goal that's also realistic. Think of this as setting good expectations for yourself.
• Realistic: Even if it's within reach, does the goal make sense? What are the trade-offs? Is this a goal that will benefit your long-term future?
• Time-based: How long is it going to take to achieve this goal? The answer (or estimate) will tell you if it's a short, medium, or long-term goal. Forecasting important factors like your future income, inflation rate, and the potential return on investment become more important the longer your time horizon is.