If you made a resolution about money this year, does it pass the SMART goal test?
Here’s an example: ‘Save £500 for a week’s holiday in September’ is a SMART goal. It is Specific, you know exactly what you need to do, save £500. It’s Measurable, you will know if you have achieved it because you will have £500 in September. It will be Attainable if you know for example you are a good saver. It’s Rewarding because you get the holiday you want. It’s Time-bound because you want it by September.
Having SMART goals makes the likelihood of achieving them so much greater. They give you something to focus on. You can then put in place the steps needed to get there. ‘I will pay £63 into my holiday savings for the next 8 months.’ If you apply the SMART goal test to your resolution and answer yes, great – go ahead and do it.
If not try a different step ‘I will record everything I spend this month so I can identify where I can make £63 of savings each month to go on holiday in September’. Again try the SMART test.
Your money patterns, beliefs and habits have the power to both hinder and help you. Turn your money resolution into SMART goals, your Money Warrior will love you for it. Notice your reactions and write them in your Money Journal whatever you choose to do.