Be Financially SMART!

”Be SMART While Defining Your Future Financial Goals”

– Happy Economics

Today’s topic will be a straight forward one and it will also require you to think deeply about every detail. As you work towards completing your university degree or the National Youth Service Corps (NYSC), money management is a crucial part of achieving your goal to successfully move into the adult life. If you are a business owner or an employee, setting goals is what gets you to effective money management. You have to understand the end result you want and the steps to take to achieve them.

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What are some of your personal goals?                   

Think!

One of the approaches you can follow to achieve your personal finance goals is to follow the SMART strategies/SMART acronym. With this strategy, you can set your short, medium or long term financial goals.

You have to learn to pen down realistic goals and actively work towards achieving them. Every established company or person out there today had at one time penned down their financial goals and it has worked and is still working for them. It’s not easy, but as the saying goes, nothing good comes easy.

Here are some things to note about writing down your financial goals:

  • Details: write in excruciating detail, don’t skip anything.
  • Look at it often
  • Evaluate and adjust when needed.

Doing these will help you make good financial decisions and build a strong financial backbone for your future.

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Photo Credit: IQmatrix.com

 Practical Illustration:  The Goal Here Is TO GO ON A VACATION

Specific

You have to be clear in what you want

  • Smart Goal: I want to go to Hawaii, US next year Summer
  • Not so Smart Goal: I want to visit somewhere in US next year

Measurable

Set a specific amount you want to achieve

  • Smart Goal: I would need around #40,000 to spend per week on food and outing
  • Not so Smart Goal: I would save some money to enjoy on the trip

Attainable

Think seriously about your wants versus needs. It should not be too difficult to achieve

  • Smart Goal: I will go on this trip with friends and split the costs
  • Not so Smart Goal: I will go alone and spend daily on restaurant food

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Realistic

Recognize your situation and set achievable goals

  • Smart Goal: I will  save #100,000 monthly from my salary of #200,000 for the next 10 months
  • Not so Smart Goal: I will save #170,000 monthly of my salary of #200,000 for the next 5 months

Time-Bound

Start the countdown toward your goal

  • Smart Goal: I want to save #600,000 by 9th of August, 2018
  • Not so Smart Goal: I want to save #600,000 by next year Summer

You can share strategies you have used or still using to achieve your goals in the comment section below.

PS: Share some SMART goals with us and we just might feature you on the blog!

Have a great week, and until next time,

Happy Economist.

🙂

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