Do you find yourself making the same New Year’s resolutions every time January 1st rolls around? If so, you’re certainly not alone. And as for why this may be happening, it’s probably because you’re not setting the right goals in the first place.
What makes a goal “right”? Several elements, which is what the SMART method entails.
What is the SMART Method?
The SMART method is a guide you can use to set goals. It is made from the following acronym, which tends to vary, and describes characteristics that each objective should have:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
If you set a goal that has those characteristics above, it will not only be crystal clear, but also extremely achievable.
Now let’s break down each part of a SMART goal and create examples based on a desire to save and make more money this year.
1. Specific
If your goal is not specific, you won’t have the motivation needed to achieve it.
To make a specific goal, answer these five questions:
- What is the goal that you want to accomplish?
- Why is the goal important?
- Who will be involved in helping you reach the goal?
- Where is the goal located?
- Which resources will you use to achieve the goal, and are they limited in any way?
Example: “I want to have extra money saved up this year so that I can move my family into a better apartment. I will first ask for a raise/more hours from my current boss. I will also do babysitting and pet sitting side gigs online to make extra money, while only eating out once a month to cut costs.”
2. Measurable
A goal must be measurable so you can track your progress. To make it measurable, answer these questions:
- How many or how much?
- When will it be finished?
Example: “I want an extra $5,000 saved up by December 31st.”
3. Achievable
While it’s good to aim high with your goals, they must be realistic so you can achieve them. To make your goal realistic, answer these questions:
- How will you accomplish the goal?
- When considering limitations, how realistic is the goal?
Example: “I have many years at my job, so asking for a raise is not out of the question. Since I have kids, a dog, and plenty of babysitting and pet sitting experience, making extra money from such gigs shouldn’t be difficult. Also, I can easily reduce eating out to just once a month.”
4. Relevant
The goal must matter to you. If not, you won’t feel motivated to achieve it. Answer these questions to determine if the goal is relevant to you:
- Is this goal worth your time?
- Is now the right time to go after it?
- Does the goal align with your needs?
Example: “Now is the right time to save an extra $5,000 by the end of the year since I’m ready to upgrade my family’s living conditions. We’ll have better schools at our disposal, and getting a raise and doing extra work is something I’ve wanted to do for years.”
5. Time-bound
You need that target date to push you towards reaching the goal. Having it also helps you break down the steps to achieve it.
Make your goal time-bound by answering these questions:
- When must the goal be accomplished?
- What can you do in the next six months to move towards it?
- What can you do today?
Example: “December 31st is when I must have the extra $5,000 sitting in my bank account. In the next six months, I can have a solid network of people needing my babysitting and pet sitting services. Today, I can sign up to a site like Care.com to find my first gig to start building my online reputation and get more work.”
Use the tips above to create your SMART goal, and you should not only see your money grow, but other parts of your life as well.
Section 8 Assist
