What is a SMART financial goal?

A SMART financial goal is a goal that is Specific, Measurable, Achievable, Relevant, and Timebound. By following the SMART criteria, you can create a clear and welldefined financial goal that is more likely to be achieved.

Here's what each part of the SMART acronym means in the context of financial goals:

Specific: Your financial goal should be clear and specific. For example, instead of setting a goal to "save more money," set a goal to "save Rs. 10,000 per month for the next 6 months."

Measurable: Your financial goal should be measurable so that you can track your progress. For example, if your goal is to pay off your credit card debt, you can measure your progress by tracking the balance on your credit card each month.

Achievable: Your financial goal should be realistic and achievable. Setting an unrealistic goal can be demotivating. For example, if you have a low income, setting a goal to save Rs. 50,000 per month may not be achievable.

Relevant: Your financial goal should be relevant to your overall financial plan. For example, if your longterm financial plan is to retire early, your shortterm financial goal could be to increase your monthly retirement savings contributions.

Timebound: Your financial goal should have a specific deadline. This helps to create a sense of urgency and helps you stay motivated. For example, if your goal is to save Rs. 10,000 per month for the next 6 months, your deadline is 6 months from now.