Setting a financial goal starts with your life goals. Things you want to do, places you want to visit; things you want to accomplish in the next few years are some items you might want to list. Another thing you will want to consider is the expenses that occur between the time you graduate from college and you get a job. This will give you a rough idea of what and when your expenses might be.
Short, medium and long-term goals are necessary for financial success.
- Short Term- Save $50 by next month to buy a pair of shoes.
- Intermediate Term- Save money from on campus job to buy a business suit for job interview.
- Long term- Save $2500 from summer job over next 3 years for down payment on my first house.
All goals should be SMART goals...
(S)pecific (M)easureable (A) ttainable (R) ealistic and (T) ime Bound.
- Example SMART goal- I will pay $1000 credit card balance off by end of the school year in 10 months.
Pay credit card balance - (Specific). $1,000 balance to a $0 balance- (Measureable) Currently Employed and I am capable of saving (Attainable). The amount of money I plan on paying is within my budget- (Realistic). 10 months will be plenty of time for me to pay off my credit card- (Time Bound)
Write out exactly what you want to achieve and share it with a family member of friend.
Sharing goals with others requires additional accountability on your part and you'll have a network of individuals supporting you in achieving your goals.