Goal Setting: the SMART way

“Goal setting is the process of identifying something that you want to accomplish and establishing measurable objectives and time frames.”

In my article “Financial Planning: A Guide”, I mentioned about Goal Setting. It will be discussed in details today.

There are 3 types of goals

1. Time-based goals. These are goals that will be achieved based on time frame. It could be short-term or long term goal; it could be stepping-stone goals or lifetime goals. 
2. Focus-based goals. These goals are either big or small. Big goals will involve a lot of time and effort like learning how to write codes for a specific programming language. It will not happen overnight and for sure, it will take a lot of effort. Small goals on the other hand will only involve little effort and less time. Learning how to make a paper airplane for example will take a little effort and a little time.
3. Topic-based goals. These goals are related to certain topics or aspects. It could be financial, professional or career, or personal goal. Maybe you have a goal to save money for a planned vacation, or you plan to become a SCRUM master.

Set SMART goals. It is a systematic way of setting goals, and leads to a better and clearer path. SMART stands for Specific, Measurable, Attainable, Relevant, Time-bound.

Specific

Be as specific as possible in setting up your goals. This will give you a clearer sense of direction. It will be easier to create your action plans if you have a very specific goal.

Measurable

Set goals that are measurable. It is better to set time, dates or amounts. Goals that are quantifiable are most likely to be achieved than vague ones. For example, if your goal is to save money, set an amount so it will be a clearer objective.

Attainable

Set goals that are attainable. Never make goals that are almost impossible to achieve. Set goals that are manageable. Be more realistic. You will only get frustrated if you set unrealistic goals.

Relevant

Set goals that are relevant to your direction in life. Align your short-term and long-term goals. This will greatly influence your focus. For example, if your long-term goal is to attain financial freedom, then saving a specific amount each month could be your short-term goal.

Time-bound

Set a timeline for your goals. Having a timeline will help you set proper action plans. It will also set a sense of urgency especially if you are still far from achieving your goal and the deadline is very near. It will also give you more self-fulfillment when you reach milestones.

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