After assessing our financial status, we should set our financial goals. Without goals, we have no target in our financial planning and we can achieve nothing. Without goals, it is very difficult to draft up a proper financial plan for ourselves. Goals are actually what we wish to achieve. However, most of us have no idea how to set the financial goals effectively.
Typically, one of the methods to set goals effectively is getting S.M.A.R.T.
Specific. When we set our financial goals, the goals must be specific. Keeping the goals specific, we can set our plan easier, as we can plan for specific action to achieve specific goals.
Example: To get enough education funds for the son to study at Australia by using both education plan policy and bluechips investment.
Measurable. As we need to revise our financial plan regularly, we need to make sure our goals are measurable. If we cannot measure it, we cannot imagine it. Measurable goals make us clearer what is our goals and easier for us to judge if we have achieved, partial achieved or not achieved. Having a measurable goal, we can see the change occurs.
Example: To get RM300,000 of the education funds for the son to study oversea from both education plan policy and bluechips investment.
Attainable/Achievable. When we set our financial goals, we will think of the way we want to achieve the goals. The financial goals must be achievable and not too far from our ability. The feeling of success helps you to remain motivated.
Example: To get 15% average annual return from the bluechips investment and 7% average annual return from the education plan policy.
Realistic. Realistic means something do-able. When we set our financial goals, we must be realistic. Looking at the resources that we have and the status that we are in, set a realistic goal.
Example: By using RM10,000 as capital and yearly top up of RM5,000 to invest in bluechips. Pay RM300 per month for the education plan policy.
Timely. All the goals that we set must be put a time frame. Without time frame, we will never start to move towards the goals. No time frame, no commitment.
Example: To get RM300,000 of the education funds for the son after 15 years.
Typically, one of the methods to set goals effectively is getting S.M.A.R.T.
Specific. When we set our financial goals, the goals must be specific. Keeping the goals specific, we can set our plan easier, as we can plan for specific action to achieve specific goals.
Example: To get enough education funds for the son to study at Australia by using both education plan policy and bluechips investment.
Measurable. As we need to revise our financial plan regularly, we need to make sure our goals are measurable. If we cannot measure it, we cannot imagine it. Measurable goals make us clearer what is our goals and easier for us to judge if we have achieved, partial achieved or not achieved. Having a measurable goal, we can see the change occurs.
Example: To get RM300,000 of the education funds for the son to study oversea from both education plan policy and bluechips investment.
Attainable/Achievable. When we set our financial goals, we will think of the way we want to achieve the goals. The financial goals must be achievable and not too far from our ability. The feeling of success helps you to remain motivated.
Example: To get 15% average annual return from the bluechips investment and 7% average annual return from the education plan policy.
Realistic. Realistic means something do-able. When we set our financial goals, we must be realistic. Looking at the resources that we have and the status that we are in, set a realistic goal.
Example: By using RM10,000 as capital and yearly top up of RM5,000 to invest in bluechips. Pay RM300 per month for the education plan policy.
Timely. All the goals that we set must be put a time frame. Without time frame, we will never start to move towards the goals. No time frame, no commitment.
Example: To get RM300,000 of the education funds for the son after 15 years.
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