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Setting SMART Goals
So you want a PSP™, that cool
new purse, or a car. Or, you’re
thinking about covering college expenses after you graduate
from high school. One way
to get or do these things is to set financial goals. Your goals can be considered
short-term, medium-term, and long-term, and they can improve your finances or
help you pursue a career. Any financial goal you set will help you do and buy
the things you want. Your career goals will help you get ahead, and that means
learning new skills and making more money.
Short-term goals will be reached within the next three months.
Financial: Save $25 by the first of next month to buy my dad a birthday present.
Career: Read about types of careers I might be interested in by the end of next
month.
Medium-term goals will take between three months to one year to reach.
Financial: Save $400 in 12 months to take college prep exams.
Career: In eight months, learn how to organize dad’s business documents
and write checks for his business.
Long-term goals take more than one year to reach.
Financial: Save $2,000 by the beginning of my senior year for a down payment
on a car.
Financial: Save $10 per week during the next three years for college or trade
school expenses.
Career: By January of my sophomore year, have a list of all the right courses
and tests required to get into engineering school and a list of possible engineering
colleges.
Notice all the examples have a time frame (such as “by the beginning of
my senior year”). The financial goals have dollar figures (such as “$10
per week”). These two things make goals SMART! Goals must be specific and
realistic to be reached successfully. Here’s how to do that the SMART
way.
Specific: “I want a used car teens like to drive with less than 60,000
miles on it,” rather than, “Hey, I sure need to get some wheels!”
Measurable: “I want to get a B+ in algebra” rather than, “I
better get my grades up.”
Attainable: “I’ll share the driving with my friends to lower my cost
of gas,” rather than, “I’ll drive everywhere at anytime!”
Realistic: “I’ll improve my grade in reading by one letter grade,” rather
than, “I’m going for straight As!”
Time-frame: “I’ll have enough money for my expenses by September
of my freshman year of college,” rather than, “I want to have the
money when I’m in college.”
With SMART goals, you can figure out what you need to do or save so you can get
what you want. And they will help you draw up an action plan and track your progress.
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