A common framework for goal setting is the SMART goal. Each letter in the acronym represents a component of a good goal.

Specific: A goal should help you focus on something specific. Instead of setting a goal for “having enough money” you can break it down into components. This is an opportunity to focus on more than adding to your stock portfolio. Look at your total wellbeing and pick something specific that would make you happy. Perhaps first a goal to eliminate some spending so you will need less money. Pick something that might benefit you in multiple ways like eating less fast food. A specific goal can become a mastered behavior with practice!

Measurable: Once you have a specific goal you can establish a way to measure it. The measure should be easy to use; otherwise, you won’t use it. Following the earlier goal to remove an expense like fast food, note how many times per week you eat at a fast food restaurant and aim for one less visit per week. Put that money into a jar that you can use for something else to promote your wellbeing.

Achievable: New Year’s Resolutions are notoriously difficult to keep. One of the top reasons is that they are so distant that we give up. Make your goals achievable so that they stretch you but not break you. If you are just starting to spend less money on fast food, don’t try to eliminate all fast food immediately. 

Relevant: Your goals should be relevant to everything else in your wellbeing. It makes no sense to sacrifice your overall wellbeing for a financial goal. You are a total person and your goals should support you… Mind, Body, and Spirit.

Timely: Put a time frame around your goals to which you can commit daily. A goal that is months or years into the future is more like a wish. Set your financial goals for something you will do daily or at least weekly.