Which is the recommended way to structure financial goals?
The recommended way to structure financial goals is to follow the SMART criteria:
Specific: Clearly define exactly what you want to achieve. For example, instead of setting a vague goal like "save more money," specify a specific amount or percentage you want to save each month.
Measurable: Make sure your goal is quantifiable so you can track your progress. Having specific numbers or targets will help keep you motivated and accountable.
Achievable: Set realistic goals that align with your current financial situation and resources. Be honest with yourself about what you can realistically accomplish within a certain time frame.
Relevant: Ensure that your goals are relevant to your overall financial objectives and priorities. Your goals should align with your values and what you want to achieve in the long term.
Time-bound: Set a deadline for achieving your goals to create a sense of urgency and motivation. Having a specific timeframe will help you stay focused and committed to reaching your goal.