How to Set S.M.A.R.T Goals

In financial planning, the most important thing that you need to do is to set financial goals. Your goals could be controlling your spending so that you could pay off your study loan or buy a home/car. Regardless of what your goal is, ensure that it is SMART i.e. specific, measurable, realistic and can be achieved within a certain time frame. So learning to identify and set clear goals is key to your success in life.

Your specific goals will depend on a number of factors—your values, age, financial situation, and interests.

Sample of financial goals

  • controlling your money so you have a little left over every month
  • paying off debt
  • having an emergency cushion in case of car break down or medical emergency
  • buying a home
  • buying a car
  • saving for retirement
  • purchasing "big-ticket" items, like electrical appliances
  • planning a vacation

What is SMART goal?

Example: Johan’s goal:

To save for a vacation in Pulau Redang that costs RM1, 000 in 4 month’s time. He needs to save RM250 per month.

Specific

To go for a vacation in Pulau Redang – NOT want to go for a vacation

Measurable

Need to have RM1,000 – NOT need to have money

Attainable

Must save RM250 per month – NOT waiting for someone to give free traveling gift voucher

Realistic

To go to Pulau Redang in 4 month’s time – NOT to go to London in one month’s time based on RM250 savings per month

Time-bound

To buy it in four month’s time – NOT when I have money
 
| page 1 | 2 |