Ah, it’s that time of year again when resolutions and goal setting accompany a cold glass of nog. This process of projecting what you want to accomplish over the next 12 months is a great exercise to maintain forward momentum with your priorities. Now, you might expect the typical financial advisor to focus exclusively on financial goals (which don’t get me wrong, those are important!). However, a true partner in financial planning will also discuss and incorporate other elements of your life such as relationships, career, personal growth and development and health and wellness to name a few. The best financial plans are unique to you and provide achievable targets with a framework for incremental, consistent progress.
One of the most common and popular frameworks for well-structured goals is the SMART Goals framework. SMART stands for:
- Specific - it should be clear
- Measurable - you should know how to track progress
- Achievable - the goal should be realistic and attainable
- Relevant - how does the goal relate to other priorities and objectives you have
- Time-bound - set a deadline to create urgency and a timeline for completion
An example of a SMART goal might look something like this:
“I will research and select 4 workshops to attend by the end of 2025 that focus on one of the following elements of self-improvement: active listening, time management, emotional intelligence and embracing a growth mindset”.
This goal is
Specific by identifying what my goal is: self-improvement; it is
Measurable by identifying how many workshops I want to attend; it is
Achievable by not being overly ambitious on the time commitment; it’s
Relevant to improving myself for personal and professional relationships (applying to other goals and objectives I have - such as career advancement); it’s
Time-bound, set to be complete by the end of 2025.
I would be remiss not to mention at least a few ideas for SMART financial goals!
- Project your personal (and business if applicable) cash flow for the year. What percentage are you saving, spending? Do you have a plan for unallocated cash flow if and when it comes in? Are you investing in yourself? (The greatest wealth is health, as they say!)
- What are your big expenditures for the upcoming year? Are you ready for them? Do you have enough cash set aside or have you reviewed all of your available financing options?
- Has it been 5+ years since you have reviewed your: estate plan, insurance policies (auto, home, life)? If so, it’s time for another look!
If you struggle with where to start in setting your 2025 goals, schedule a meeting with us and we’ll be more than happy to help! Or if you already have your 2025 goals in place, share those with us too!
