MoneyCounts: A Financial Literacy Series Smart Goals 11-A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214

Description Goal-setting is a road-map to success with a higher level of financial security, freedom, and literacy In a road trip with no purpose and destination in mind, you might enjoy the freedom of changing courses several times, but your journey will be definitely convoluted with useless stops and wasted resources In a well-planned road trip with researched visits, useful stops, and pleasant destinations, you would still have the freedom to take detours and impulsive stops, but you could always get back on track and keep moving forward In your financial life, the planned trip would be what every people dream of retiring on a sandy beach with plenty of financial resources

Learning Outcome Discuss the importance of goal setting Understand SMART goals (key elements of effective goal setting) Identify steps to goal setting Practice setting SMART financial goals Discuss tips and ways to commit to and achieve goals

Purpose of Goals “The tragedy of life doesn’t lie in not reaching your goal. The tragedy lies in having no goals to reach.” -Benjamin Mays

Types of Goals in Your Life Business Wealth & Financial Personal Development Spiritual Family & Relationship Professional Development Health & Exercise

Terms of Goals Short term Long term Enabling: Short term that lead to long term goals (stepping stones) Long-term goals Enabling goals Short-term goals

Short-term and Long-term Goals Foundational Provisional Long-term Lifetime Capstone

Financial Goals Become debt free Protect health & other insurance plans Establish a saving account or emergency fund Protect your family financially Build assets Control spending Retire early or comfortably Reach financial freedom and security Create a multiple income streams Make ends meet

Before you plan, picture the destination!

S M A R T Key Elements Specific Measurable Attainable Realistic Timely What exactly do you want to accomplish? M Can you assess/measure your progress? A  Is your goal within your reach? R Is it relevant toward your life's purpose? T Is there a deadline for completion? 

Specific S Specific You must fully answer the 6 "W" questions: What do you want to accomplish? Be specific! Who is involved? Name participants if more than you! Why are you doing this? State your reasons! Where would you be? Identify a location! When do you start and end? Establish a time frame! Which resources do you need? State requirements and restraints! e.g. “Get in shape” vs. “Join a health club and workout 3 days a week”

M Measurable You must fully answer these 3 "H" questions: How much? Quantify what you need! How many? Count specifically!  How will I know if it is accomplished? Set a standard or rubrics!

A Attainable Goals need to be challenging but achievable. You should answer these questions: Can I feasibly do this? Is achieving this goal at least 50% believable to me?   Did I set my limit just right, not too high and not too low? e.g. “Practice one week before by running around the block.” “Practice one year before with someone who has done it.”

R Realistic (Relevant) You must decide if it is worthwhile for you to spend your time and energy on it. You should answer these questions: Does this specific goal contribute to my life and happiness? Does this specific goal facilitate reaching other goals pertinent to my life? Does this specific goal help me reach financial security and freedom?

T Timely You must establish a timeline and deadlines for each of your goals. A short-term goal usually includes a deadline of a month or two (within one year). A long-term goal usually has a deadline of one to five years. A life-term goal usually is for the rest of your expected life (Retirement plans).

Steps to Goal Setting Identify and List SMART Goals Write and Prioritize Them Research Barriers and Solutions Discuss with Experts Plan, Act, Evaluate, Sustain, and Assess

Identify and List SMART Goals

Write and Prioritize Them GOALS in writing are DREAMS with deadlines

Research Barriers and Solutions Follow the source Ask questions Read between the lines

Discuss with Experts

Plan, Act, Evaluate, Sustain, and Assess

To commit and achieve your goals… Share your vision Stay accountable Control your choices Reward yourself Enjoy your journey

MoneyCounts: A Financial Literacy Series Comments and questions 11A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214