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SMART Financial Goals
Setting goals is an important step in developing an effective spending plan. Without goals,
you may find that you spend money based on the moment—without a thought as to where
you want to be in the future. In creating goals, you control your future by deciding where you
want to go, when you want to get there, and what you need to do to get it done.
As you create your goals, be certain they are SMART (specific, measurable, attainable,
realistic, and time-oriented). SMART financial goals meet the following standards:
Specific – Your goals should be specific with dollar amounts, dates, and identified resources
to be used to accomplish the goals.
Measurable – Make your goals measurable by determining the amount of money that needs
to be set aside on a regular basis to accomplish your goals.
Attainable – Your goals need to be attainable based upon factors that include time frame and
income level. Your goal should stretch you slightly but not be so far out of reach that you may
quit trying.
Realistic – Your goals needs to be realistic (“doable”) based upon your circumstances. Can
you create a realistic plan to make your goal a reality?
Time-oriented – Create a specific timeline for accomplishing your goals. To achieve your
goals, you must be willing to make trade-offs in your financial life. Set aside time on a regular
basis to monitor progress towards meeting your goals.
Take the time to put your goals in writing on page 2 of this handout. Short-term goals are
goals that can be achieved within one year. Intermediate-term goals are goals that can be
achieved within one to three years from now. Long-term goals are goals that will take longer
than three years to achieve.
Because events occur that you do not foresee, you will need to make changes to your plan.
Be ready to modify your budget as circumstances change. You may not have enough money
to work on all of your goals at once, so you will need to prioritize your goals. Once a goal is
achieved, start on the next goal. With commitment and discipline, you can take control of your
financial future.
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South
Dakota State University is an Affirmative Action/Equal Opportunity Employer and offers all benefits, services,
education, and employment opportunities without regard for race, color, creed, religion, national origin,
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