Setting SMART Saving Goals

Anyone who works any where with any form of appraisal system should be only too familiar with SMART goals, for those fortunate enough not to have had this acronym drummed into them by over zealous HR types this stands for:

S – Specific – Objectives should be descriptive, succinct and provide clarity of what is to be achieved

M – Measurable – Objectives should clearly state the tangible targets that can be measured in the future

A – Aspirational – Objectives should be challenging but achievable, motivational and not demoralising

R – Realistic – Objectives should be based on sound background knowledge to ensure they are achievable

T – Timebound – a timescale should be set against the achievement of each objective in order for performance measurement to be undertaken*

So, for example, ‘I want to be skinny, like Kate Moss’ wouldn’t be a SMART goal. But ‘I want to lose 6lbs by August 2010’ would be. SMART goals can also be applied (and I would actively encourage you to do so) to savings plans, so…

Saving Plan # 1 – The Holiday of a Lifetime

becomes…

I want to save £1,583.80 by 31/08/10 for our Malaysia trip

Savings Plan # 2 – A Beautiful Wedding

becomes…

I want to save £7,500.00 by 30/09/11 for our wedding

Savings Plan # 3 – Rainy Day/Future Fund

This is the only one which I don’t feel comfortable setting a SMART goal for at present as I just don’t think it’s realistic to start saving for this yet, with such expensive short-term aims. Plus by over-stretching myself I think I’ll just end up demotivating myself and splurging when I should be saving.

What would your SMART saving goals be? Why not set some today?

* Big up to Marketing Planning – The Official CIM Coursebook by Karen Beamish & Ruth Ashford where I have paraphrased this explanation from, oh and for helping my pass my CIM course!

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3 responses to “Setting SMART Saving Goals

  1. Pingback: 2010 the year I… | BABE ON A BUDGET

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