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A financial resolution

A financial resolution

One of my financial resolutions for 2008 is to increase my savings by $4000. This will be a pretty big stretch for me, because I’ll be adding that goal to my previously existing goals. (Which are already taking quite a bit of my money.) Here’s this goal defined using the SMART method:

Specific – To increase my current high-yield savings balance by $4000 by December 31, 2008. I intend to do this by making regular contributions with each paycheck, and additional contributions each time I earn non-salary income.

Measurable – I will know that I’ve achieved this goal when my balance is $4000 greater than it currently is. I will also be able to measure progress by seeing if my balance is increasing steadily, ideally by at least $334 per month.

Achievable – Although it will be a stretch, I do believe that it’s achievable. Reaching the goal will require me to both spend less and earn more income.

Realistic – It is a realistic goal because my spending is already trending downwards and my income is gradually increasing.

See Also

Timely – I have one year to reach this goal. (Or 13 months if I start now, which I’m doing.)

I chose this goal because I think it will help me feel a little better about one of my other goals — maxing out my IRA. It’s been hard for me to contribute money regularly to my IRA, only to watch my money “disappear” into the ups & downs of the stock market. I think I’ll feel better about continuing with that goal if I’m also putting some money in a place where I can watch it increase.

View Comments (5)
  • The SMART method is used by many disciplines, all of them having to do with achieving goals. At my company we use it to create our Goals and Objectives every year, for example, but the method is applicable in many settings. It really helps focus your efforts, and will also help you track down which step was the cause for failure, if that were to happen, which I don’t think it will in this case :)

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