"I want to be better with money" is not a goal. It's a wish. Goals need specifics.
The Problem with Vague Goals
| Vague | Specific |
|---|---|
| Save more | Save $5,000 for emergency fund by December |
| Pay off debt | Pay off $3,000 credit card in 10 months |
| Start investing | Put $200/month into starting next month |
Watch Out
If you can't measure it, you can't achieve it.
Make Goals SMART
- Specific: Exactly what you're doing
- Measurable: A number you can track
- Achievable: Realistic for your situation
- Relevant: Actually matters to you
- Time-bound: A deadline
Short-Term vs. Long-Term
| Timeframe | Examples |
|---|---|
| This month | Build $500 buffer in checking |
| This year | $1,000 |
| 3-5 years | Pay off student loans |
| 10+ years | Retirement, house |
Pro Tip
Work on 2-3 goals at once max. Spread too thin and you'll achieve none of them.
Calculate What It Takes
Example: Save $6,000 in 12 months
- $6,000 ÷ 12 = $500/month
- $500 ÷ 4.3 weeks = $116/week
- $116 ÷ 7 = $16.50/day
Suddenly it's "skip one lunch out" instead of "save six thousand dollars."
Track Progress
Do This
- Write goals down (phone notes, spreadsheet, paper)
- Check progress monthly at minimum
- Celebrate milestones (without spending your progress)
- Adjust if circumstances change
When Goals Compete
Prioritize in this order:
- (starter $1,000)
- on 401k
- High-interest payoff
- Full emergency fund (3-6 months)
- Additional retirement savings
- Other goals
Quick Win
Pick one financial goal right now. Make it SMART. Calculate the monthly/weekly amount. Set up automation.