How to Set SMART Financial Goals

Today, I’d like to talk about setting SMART Financial goals. Setting SMART financial goals is a vital topic that should begin every money transformation journey, -and here is why:

“I wanna be a millionaire so freaking bad.”
-Bruno Mars

“In my early 30s, money was scarce, and I struggled as a woman and a single mother to my daughters. Still, I was determined not to let my present financial predicament screw up my future. With unwavering optimism, I set a goal for myself: I would be a millionaire by the time I turned 40 years old.” Yes, girl, bring it on!

—-And guess what?

It did not happen.

At 40, I was even broker than I was when I set the initial financial goal.

What went wrong? Why did my story not end like it does in movies like The Pursuit of Happiness? Was it because I was not born in America, the land of the plentiful? Was it because I am a black woman? What went wrong, Joyce? Why did I not achieve my goals but instead find myself in a worse position with so much debt and no savings?

Are You Really Setting Goals?

“A goal without a plan is just a wish.”
– Antoine de Saint-Exupéry

I’m a curious person who loves analysing things. So, as I tried to figure out why my millionaire dream became a financial disaster, I looked closely at my goal. Was it a tangible goal or just wishful thinking?

I conclude that my goal to be a millionaire at 40 was not a goal; it was wishful thinking, plain and simple.

If I knew then what I know now, I would have applied the SMART acronym to my wanting to be rich at 40.

Setting SMART Goals

Let’s break down SMART goals in simple everyday language:

Specific: Your goal should be super clear, like taking a picture with a sharp focus. It should answer questions like what you want to achieve, why, and how. Instead of saying, “I want to get healthier,” say, “I want to lose 10 pounds by jogging three times a week.”
Measurable: You need a way to track your progress, like using a ruler to measure something. Make your goal something you can measure with numbers. So, instead of saying, “I want to read more,” say, “I want to read one book per month.”
Achievable: Your goal should be something you can realistically do. Think about it like setting a goal that’s challenging but not impossible. If you’ve never run before, saying you’ll run a marathon next month might not be achievable.
Relevant: Your goal should make sense and fit with your overall plans. It’s like choosing the right puzzle piece for your puzzle – it needs to connect to the big picture. For example, if you’re trying to save money, setting a goal to buy a luxury car doesn’t really gel with your goals.
Time-bound: Give yourself a deadline and a target date to finish. It’s like having a finish line in a race. Instead of saying, “I’ll learn to play the guitar someday,” say, “I’ll learn to play three songs on the guitar by the end of this year.”

How Does Setting SMART Financial Goals Help You?

I am glad you asked………

SMART goals can make planning and reaching your objectives easier because they’re clear, trackable, doable, relevant, and have a set timeframe.

My goal to be super rich had none of these qualities. This is why I was still a broke ass at 40.

How about you?

Are you setting financial goals? And, are your goals SMART Financial goals?

“The trouble with not having a goal is that you can spend your life running up and down the field and never score.”
– Bill Copeland

Short, Medium, and Long-Term SMART Financial Goals

I used to run a financial freedom workshop and do one-to-one coaching on personal finance. Every session starts with setting financial goals. Setting goals from the onset is understanding your current money situation and identifying where you want to be in the short, medium and long term.

Skipping this step is like setting off on a journey with no particular destination in mind and no planning. It is a pointless journey that will waste your valuable time and scarce resources.

Be smarter than I was. Set clear financial goals as your first step. With time, everything else will fall into place.

To help you along this journey, I created this SMART Financial Goals workbook. I use it and find it keeps me accountable and focused.

I also have a YouTube Video on this topic; you can watch it here. If you’re looking for more inspiration from people who have successfully turned their finances around and achieved their goals, click here!

Final Thoughts

Congratulations, you’ve taken the first step towards financial success by exploring the world of SMART financial goals. Remember, achieving your dreams is within reach when you set clear and actionable goals.

To help you on this journey, I’ve prepared a free, downloadable Goal-Setting Workbook to guide you in applying the SMART principles to your financial aspirations.

SMART Financial Goals WB — SMART Financial Goals

And that’s not all – I’d love to stay connected with you! Join our vibrant community of goal-getters by subscribing to our newsletter. By doing so, you’ll be the first to know when I publish new blogs, share exciting tips, or have special goodies to give away.

Together, we’ll turn those dreams into reality. Click here to grab your workbook and join our inspiring community of achievers. Here’s to your financial success!

Create Your Own Financial Success Story!

Hi there, I’m Joyce. With over 25 years in the finance industry, I’m here to help you achieve financial independence. My journey from struggling to financial freedom shows that transformation is possible.

This blog offers practical tips and insights to help you manage money, boost income, and live the life you deserve.

Let’s create a life of abundance and joy together!

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