Smart Financial Literacy

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Specific One of the most important considerations is to set an actual target. Rather than saying ‘I want more money’, be specific. I want to save for a new car that I can drive to work. Measurable In order to know if you are on track to reach your goal, you need to be able to measure your progress. Similar to the first point, this again requires you to be specific and set an actual target. I want to save $10 000 for a new car that I can drive to work. Attainable Having a specific goal is important, but this must be balanced against setting a goal that you can achieve. Well-set goals will provide motivation by challenging you, but are possible for you to attain. One thing to consider is if others in a similar position to you have achieved this goal before. Realistic This concept is related to achievability but focused more on your individual situation. Given the resources and time you have available, is it likely you will be able to reach your goal? If you currently only save $5 per week, then a $10 000 target may not be realistic. Time-bound One of the most critical aspects of any goal setting is having a time frame. This may be a specific event on a set date you are saving for or a timeline you have set yourself: I want to save $10 000 in the next two years for a new car that I can drive to work. Understanding the time you have available will also help decide if a goal is realistic.

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