One way to help add focus to your finances to help save money and budget properly is to come up with S.M.A.R.T. financial goals. These are specific, measurable, achievable, relevant, and time-bound economic goals that give you something to strive for that can help with your financial planning.

In this guide from Fast Auto Loans, Inc., we will explain the benefits of S.M.A.R.T. financial goals and budgeting tips that can help you achieve your goals. We will also explain how title loans can help you stay on track with your financial planning when unexpected emergencies arise.

What Are S.M.A.R.T. Financial Goals?

S.M.A.R.T. financial goals are focused and specific goals that give you a target to achieve when financial planning. It can be hard to stay on track when saving money if your goal is just to save money. Having a specific goal, such as paying off your student loans early, buying a new car, or moving to a better house, all have specific dollar amounts you must save, giving you a target to achieve with your savings.

S.M.A.R.T. is an acronym for Specific, Manageable, Achievable, Relevant, and Time-Based. Turning whatever you want into a SMART goal can help you achieve it more effectively.

Let’s take a closer look at each of the five elements of a S.M.A.R.T. goal:

S - Specific

First and foremost, a S.M.A.R.T. financial goal must be specific and not vague at all. The more specific you are about what you want to achieve, the better. Being specific helps you stay focused by preventing any distractions.

Rather than saying, “I want to save money,” you can say, “I want to save money to pay off my car.” This gives you more focus when using budgeting tips, as you know exactly what you wish to achieve.

M – Manageable

A S.M.A.R.T. economic goal must also be manageable. While it’s good to have big dreams and grand visions, you must break your goals down into manageable parts. That way, you won’t overwhelm yourself along the way and give up on your goal before making any progress.

Give yourself a manageable financial goal that you can realistically achieve by hitting benchmarks. For example, let’s say you have $10,000 in student loan payments left. Set a goal to save $500 every month; that way, you can pay off your student loan in about 20 months, depending on how much interest you accrue.

A – Achievable

Always remember that it’s important to be honest with yourself when setting your goals. That’s why SMART goals must also be realistically achievable based on the time and resources you must devote to them.

For example, trying to save money for an $80,000 vehicle may not be realistic when you only make $15 an hour. Setting up a more achievable goal, such as buying a $25,000 car, is more manageable and gives you a realistic goal to strive for that you can achieve.

R – Relevant

The goals you choose will likely take a lot of time and commitment on your part. For that reason, you’ll want to choose goals that are relevant to your desires.

Unfortunately, many people make the mistake of choosing goals based on the expectations of other people, like their family members, while ignoring what they want for themselves. As a result, pursuing those irrelevant goals causes more pain and frustration than anything else. Only set S.M.A.R.T. financial goals that can provide you with joy or personal fulfillment.

T – Time-Based

S.M.A.R.T. goals must be time-based. People often make the mistake of saying they want to pursue their goals ‘someday,’ but that doesn’t end up happening. By setting timeframes and deadlines, you’ll pursue your goals with a sense of urgency.

Having a specific timeframe in mind gives you more focus to achieve your goals. For example, let’s say you want to go on a Hawaiian vacation next year. However, you need to book ahead to get all the reservations you want. You can set a goal to save the money you need for the vacation by the end of the year.

Resources That Can Help You Achieve S.M.A.R.T. Financial Goals

Now that you understand what S.M.A.R.T. financial goals are, it’s important to understand how to implement them. There are plenty of resources available to you that can help you stay on track with achieving your S.M.A.R.T. financial goal. Free planning tools are available online that can help with financial goal setting.

The following are some resources you can use to help with S.M.A.R.T. financial goals:

• Budgeting apps: An app like Mint can help you track how much money you make and how much money you spend. Tracking your income and expenses can help you establish a budget to assist with your savings.
• Savings calculators: You can use savings calculators to establish a time frame for how long it will take you to achieve your goal. You can calculate it based on what you need to save and how much you can save every month.
• Personal finance software: Websites and applications like Personal Capital and Quicken can provide budgeting tips based on your income, expenses, and financial goals. If you have a long-term financial goal, like saving for retirement, personal finance software can help provide tools for saving for your future.
• Financial advisors: If you would rather speak to a real representative, you can do so online, in person, or over the phone. They can look at your income and expenses and help you with financial goal setting. They can establish a plan based on your personal preferences to help you achieve your S.M.A.R.T. financial goals.

What Are The Benefits Of S.M.A.R.T. Financial Goals?

The framework of S.M.A.R.T. financial goals can make it easier to achieve your goals. Rather than having broad, unfocused goals that you wish to achieve at some point, you will have a specific goal in mind, with a dollar amount you need to save and a time frame you need to save it in. Pursuing S.M.A.R.T. financial goals can benefit you by helping with financial planning.

The following are some of the benefits of S.M.A.R.T. financial goals:

1. Providing Accountability For Financial Planning

Having S.M.A.R.T. financial goals helps you stay accountable to yourself. For instance, it’s easy to determine whether or not you’re making any progress when your goals are specific and time-based. If you’re not making enough progress and your time is running out, you’ll have to work with a bit more urgency.

When you have a personal financial goal, you will get personal fulfillment out of achieving it; this can provide its own level of accountability. Failing to achieve this will have the opposite effect, providing people with personal accountability to achieve their financial goals.

2. Staying Focused On Your Financial Goals

SMART financial goals also help prioritize your financial goals by identifying which ones are more relevant to your needs and wants. Pursuing specific goals with limited time will help you focus so you can get rid of any distractions.

Rather than getting distracted by luxuries, you can focus on achieving a financial goal that matters to you. Laying out all the details of your financial goal and establishing a time frame can provide a different level of focus than just saying you wish to save money.

3. Improving Your Decision-Making

When you have a specific goal in mind with personal relevance, it can be easier to make the right choice when faced with temptation. For example, let’s say you’re saving money for a vacation. You want to buy lunch on DoorDash when you have perfectly good food at home.

When pursuing a S.M.A.R.T. financial goal, it can help you make the right decision because you are seeking to achieve something that matters to you. Avoiding temptation and making the right financial decisions to achieve your goals faster are some of the benefits of S.M.A.R.T. financial goals.

4. Teaching Financial Maturity

The tenets of S.M.A.R.T. financial goals can help you develop techniques for handling your finances. Improving your decision-making can not only help you achieve your financial goal but also help in your life after achieving your goal.

By practicing financial discipline to achieve your goal, you can show yourself that being more mature with your finances can help you in the long run. This can affect how you spend and save money after you finish with your S.M.A.R.T. financial goal.

Stay On Track With Your S.M.A.R.T. Financial Goals With Title Loans

Financial emergencies can threaten all of the progress you have made on your S.M.A.R.T. financial goal. If you’re struggling with financial planning because of an urgent expense, Fast Auto Loans, Inc. is here to help with our title loans. These are loans that those who have paid off their cars fully can qualify for using their lien-free car title as collateral.

We allow borrowers of all credit types to get approved for up to $15,000 in emergency cash. You can even start the process online without ever having to make an in-store visit. You can start the process online with our inquiry form and receive directions from a friendly loan associate. We will come to you to verify your requirements and help you get quick cash to handle your financial emergency.

Get A Title Loan With Fast Auto Loans, Inc. Today!

S.M.A.R.T. financial goals can help you with saving money for a personally relevant expense. However, no one plans for financial emergencies during the financial goal setting stage. Don’t let unexpected expenses ruin your progress on a financial goal, and get emergency cash with Fast Auto Loans, Inc. through our Arizona title loans.

Start the fast and easy approval process for title loans by filling out our online inquiry form. A loan associate will call you to discuss what our process entails, what requirements you must meet, and how you can get approved for emergency funds today.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.