Review View Help Ford Title Subtitle Subtle Em 1 Normal 1 No Spac. Heading 1 Heading 2 Styles Paragraph Important Aspects to be considered in Goal Setting Your financial goals should follow the "SMART" principles 1. Specific: The goal should be specific and not vague. For example, "I want to be a wealthy person is not specific because we are not sure what amount of money can be termed wealthy since each person has a different perception of wealth. For example, you can state, "I want to have $10,000,000 at the time of my retirement, I will retire at the age of 65. I have 40 years left to save this amount." Be clear and detailed with your goals. 2. Measurable: "What gets measured gets managed" - Peter Drucker. If we have no measurement, we will not be sure about the quantity. Hence, we have to quantify the goal in monetary terms, "I want to save $50,000. Or, I will save $3,216.80 per month (538,601.62 per year) for the next 40 years in order to have a retirement savings of $10,000,000 at my retirement age of 65 years old. 3. Achievable. The goals we set should be a little beyond reach but not at a level to discourage us from pursuing it. Hence, it should be challenging but within reach. Napoleon Hill wrote in his famous book, Think and Grow Rich, "whatever the mind can conceive, and believe, it can achieve. However, if you are dreaning of becoming a professional boxer but you hate training in the gym 4-6 hours a day, don't like eating healthy, don't like disting, are afraid getting your nose broken, and do not like to be hit in the face, maybe boxing is not a realistic goal that can be achieved for you. Perhaps coaching might be better. Set achievable goals, 4. Realistic The goal that we set should be realistic. I want to have $100,000 in the next two years is not realistic if we are unemployed or our income is too low to reach this goal. However, if you are able to save $1,000 per month for the next two years, then your goal can be "I want to save $24,000 within the next two years by saving 51,000 each month. I will start saving March 1, 2021. with an end date of February 28, 2023." 5. Time bound: While setting a goal, we should specify the time by when it shall be achieved. For example, if you state your goal is to buy a three-bedroom single family home with a two- car garage, in New Rochelle, NY which costs $1,000,000 by saving $200,000 for the down. payment. This goal satisfies other aspects of SMART goals except the time. If we add in the next four years", it becomes more complete Example of SMART Goal dal hp AaBbct ct 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em. Paragraph Styles Goal: I want to purchase a Residential apartment Specific: I plan to save money for the down payment to purchase an apartment. Measurable: The down payment required is 24,000 dollars Achievable: I plan to save $1,000 each month from my salary. Realistie: I can save this amount from my current salary of $3,000 per month # Time bound: I want to purchase this flat in the next two years from today's date. Goals can be classified into three types Short term: Up to 1 year Intermediate Term: More than 1 year up to 5 years Long term: Beyond 5 years Financial Goals Template: Namelsh Personal Financial Goals Date February 16, 2021 Short-Term Goals (1 year or less) Prority Tareet Date Cost Estimate Goal Intermediate-Term Goals (2 to 5 years) Goal Prority Target Date Cost Estimate $ o hp > AL t . 1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em E Paragraph Styles Financial Goals Template: Name(s) Personal Financial Goals Date February 16, 2021 Short-Term Goals (1 year or less) Prority Target Date Cost Estimate Goal Intermediate-Term Goals (2 to 5 years) Goal Prority Tareet Date Cost Estimate Long-Term Goals (6+ years) Prority Goal Target Date Cost Estimate O ED hp Picture Tools PFIN project Instructions (4) - Word Mailings Review View Help Format Tell me what you want to do . Normal 1 No Spac... Heading 1 Heading 2 Title YA Subtitle Suhtlem. Paragraph Goal I want to purchase a Residential apartment . Specific: I plan to save money for the down payment to purchase an apartment, Measurable: The down payment required is 24.000 dollars Achievablet I plan to save $1,000 each month from my salary. Realistic: I save this amount from my curent salary of $3,000 per month # Time bound: I want to purchase this flat in the next two years from today's date Goals can be classified into three types Short-term: Up to 1 year Intermediate Term. More than 1 year up to 5 years Long term: Beyond 5 years Financial Goals Template: Name(s) Personal Financial Goals Date February 16, 2021 Short-Term Goals (1 year or less) Prority Target Date Cost Estimate Goal Intermediate-Term Goals (2 to 5 years) Goal Prority Target Date Cost Estimate O 3 e C Review View Help Ford Title Subtitle Subtle Em 1 Normal 1 No Spac. Heading 1 Heading 2 Styles Paragraph Important Aspects to be considered in Goal Setting Your financial goals should follow the "SMART" principles 1. Specific: The goal should be specific and not vague. For example, "I want to be a wealthy person is not specific because we are not sure what amount of money can be termed wealthy since each person has a different perception of wealth. For example, you can state, "I want to have $10,000,000 at the time of my retirement, I will retire at the age of 65. I have 40 years left to save this amount." Be clear and detailed with your goals. 2. Measurable: "What gets measured gets managed" - Peter Drucker. If we have no measurement, we will not be sure about the quantity. Hence, we have to quantify the goal in monetary terms, "I want to save $50,000. Or, I will save $3,216.80 per month (538,601.62 per year) for the next 40 years in order to have a retirement savings of $10,000,000 at my retirement age of 65 years old. 3. Achievable. The goals we set should be a little beyond reach but not at a level to discourage us from pursuing it. Hence, it should be challenging but within reach. Napoleon Hill wrote in his famous book, Think and Grow Rich, "whatever the mind can conceive, and believe, it can achieve. However, if you are dreaning of becoming a professional boxer but you hate training in the gym 4-6 hours a day, don't like eating healthy, don't like disting, are afraid getting your nose broken, and do not like to be hit in the face, maybe boxing is not a realistic goal that can be achieved for you. Perhaps coaching might be better. Set achievable goals, 4. Realistic The goal that we set should be realistic. I want to have $100,000 in the next two years is not realistic if we are unemployed or our income is too low to reach this goal. However, if you are able to save $1,000 per month for the next two years, then your goal can be "I want to save $24,000 within the next two years by saving 51,000 each month. I will start saving March 1, 2021. with an end date of February 28, 2023." 5. Time bound: While setting a goal, we should specify the time by when it shall be achieved. For example, if you state your goal is to buy a three-bedroom single family home with a two- car garage, in New Rochelle, NY which costs $1,000,000 by saving $200,000 for the down. payment. This goal satisfies other aspects of SMART goals except the time. If we add in the next four years", it becomes more complete Example of SMART Goal dal hp AaBbct ct 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em. Paragraph Styles Goal: I want to purchase a Residential apartment Specific: I plan to save money for the down payment to purchase an apartment. Measurable: The down payment required is 24,000 dollars Achievable: I plan to save $1,000 each month from my salary. Realistie: I can save this amount from my current salary of $3,000 per month # Time bound: I want to purchase this flat in the next two years from today's date. Goals can be classified into three types Short term: Up to 1 year Intermediate Term: More than 1 year up to 5 years Long term: Beyond 5 years Financial Goals Template: Namelsh Personal Financial Goals Date February 16, 2021 Short-Term Goals (1 year or less) Prority Tareet Date Cost Estimate Goal Intermediate-Term Goals (2 to 5 years) Goal Prority Target Date Cost Estimate $ o hp > AL t . 1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em E Paragraph Styles Financial Goals Template: Name(s) Personal Financial Goals Date February 16, 2021 Short-Term Goals (1 year or less) Prority Target Date Cost Estimate Goal Intermediate-Term Goals (2 to 5 years) Goal Prority Tareet Date Cost Estimate Long-Term Goals (6+ years) Prority Goal Target Date Cost Estimate O ED hp Picture Tools PFIN project Instructions (4) - Word Mailings Review View Help Format Tell me what you want to do . Normal 1 No Spac... Heading 1 Heading 2 Title YA Subtitle Suhtlem. Paragraph Goal I want to purchase a Residential apartment . Specific: I plan to save money for the down payment to purchase an apartment, Measurable: The down payment required is 24.000 dollars Achievablet I plan to save $1,000 each month from my salary. Realistic: I save this amount from my curent salary of $3,000 per month # Time bound: I want to purchase this flat in the next two years from today's date Goals can be classified into three types Short-term: Up to 1 year Intermediate Term. More than 1 year up to 5 years Long term: Beyond 5 years Financial Goals Template: Name(s) Personal Financial Goals Date February 16, 2021 Short-Term Goals (1 year or less) Prority Target Date Cost Estimate Goal Intermediate-Term Goals (2 to 5 years) Goal Prority Target Date Cost Estimate O 3 e C