Make S.M.A.R.T. Resolutions

This year more than one-third of all resolutions made will be centered on personal finances, according to a survey by BMO Wealth Institute.

Goals related to financial issues will make up 36% of this year’s New Year’s resolutions, ranking second only to the traditional favorite; health and fitness at 51%.  Financial goals were ahead of personal development and volunteerism; 31%, success in love; 19%, and career and work related issues; 17%.

Of those respondents who had made financial New Year’s resolutions in the past, 60% reported to have kept them, while only 42% of those who made health/fitness goals stayed on track.

No matter what goals you set for yourself to be successful you will need to be objective, have a realistic target in mind, know what you are trying to accomplish; and why you want it.

Making S.M.A.R.T goals

S.M.A.R.T. goals are Specific, Measurable, Attainable, Relevant, and Timely. 

Specific – A general goal would be, “Save more for retirement” But a related specific goal would be, “Set up an automatic withdrawal out of my bank account once per month and have the money go directly into my RRSP.”  A specific goal has a far greater chance of being accomplished because it has defined parameters and constraints.

Measurable – There must be a logical system for measuring the progress of a goal.  To determine if your goal is measurable, ask yourself questions like:  How much money? How much do I want to save my years end?  How will I know when the goal is accomplished?  When you measure your progress, you stay on track, reach your target dates, and experience the exhilaration of achievement that spurs you on to continued efforts required to reach your goal.

Attainable – To be attainable; the goal must be realistic; it must be something you are willing and able to work towards.  The big question here is:  How will the goal be accomplished?

Relevant – Relevance stresses the importance of choosing goals that matter.  For example, an internet entrepreneur’s goal to “Make 25 chicken sandwiches by 3:00PM.” may be Specific, Measurable, Attainable, and Timely, but lacks Relevance to an entrepreneurs overarching objective of building a profitable online business.

Timely – A goal must be grounded within a time frame, giving the goal a target date.  A commitment to a deadline helps you focus your efforts on the completion of the goal on or before the due date.  This part of the S.M.A.R.T. goal criteria is intended to prevent goals from being overtaken by daily distractions.

When you set goals that are truly important to you, you will be more motivated and figure out ways to achieve them.   You can accomplish almost any goal you set for yourself; if you plan your steps wisely and establish a time frame that allows you to carry out those steps. 

I want to take this opportunity to wish you and your family a happy and healthy 2014!

Have a great weekend,

Tracey

Sources:  Direct excerpts from blog by Marc Chernoff, of Marc and Angel Hack life – practical tips for productive living.  And Advisor.ca post by staff 12-27-13