How do you set SMART financial goals?
SMART Financial Goals identify Specific outcomes; indicate Measurable and Achievable actions; recognize the Reasons for wanting to attain them; and establish Target dates for completion. Goals should be in writing. If you have multiple goals, they should be prioritized. If you are married or getting married, both of you should agree on your goals and how to achieve them. Set SMART goals to keep you motivated and focused.
What are short-term financial goals?
Short-term financial goals are those goals that you would like to achieve in five years or less. The reason for separating short- and long-term goals is because the number of years that you have until your target date will affect where you should save or invest the assets you are accumulating to reach these goals. Sample short-term goals may be to pay off all debt besides your mortgage and save $1,500 in a mini emergency fund.