Creating Financial Goals for 2023

Have you ever heard of S.M.A.R.T. goals? They can be used for just about any goal you may have, whether that’s developing yourself, making something good happen at work, or saving for that special thing you’ve always wanted. We’re here to help walk you through making your financial goals S.M.A.R.T. – or Specific, Measurable, Attainable, Relevant, and Time-Bound. Goals are much easier to digest and accomplish when utilizing the S.M.A.R.T. method.

To start, think back to your 2022 finances. What’s something that you wish you had accomplished? How can you do better in 2023?

We’ll use the example of purchasing a house – or, more realistically, affording a down payment – to show you how to make your goals S.M.A.R.T.

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Specific

When you start making goals, it can be easy to slip into ideal dreams. “I want to buy a house.” That is a good dream, but it can be challenging to understand how to accomplish it as a specific goal. Specify how much you would like to have in your savings by the end of the year.

“I want to buy a house.”

Versus

“I would like to have $10,000 in my housing fund by the end of 2023. This money will go towards my down payment.”

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Measurable

What metrics will you use to determine if you are meeting your goal? Deciding on the metrics can make your goal more tangible because it provides you with a way to measure your progress. If your specific goal is to have $10,000 in savings for a down payment, you could measure it by saying, “I have to save $834 each month to be on track.” Now, each month you can see exactly where you stand and will know how to adjust moving forward to meet your goal.

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Attainable

Financial goals tend to be more long-term than one year. We recommend using each year for a milestone in your overall goals. Milestones are a series of steps along the way that result in the completion of your main goal once they are added up. If your next financial goal is to purchase a house, use this year to get one step closer. If you want to save $10,000 for a down payment but can only afford to save $400 a month, it will take you just over two years to reach your goal. ?

We have a variety of financial calculators available as a resource for planning, estimating and exploring your financial opportunities to make sure your goals are attainable. You can find them on our website: https://www.greatsouthernbank.com/financial-calculators.

Attainable goals are meant to inspire and motivate you, not be discouraging.

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Relevant

When making a goal, you also want to ensure it is relevant.

When applying this aspect to buying a house, you must ask some long-term questions. Where will you live? Once you pay the down payment, will you have enough money to maintain house expenses and pay off the rest of the mortgage? Some of these questions will help drive you to your financial goals and give you a better understanding of your goal.

This aspect of goal-creating can also help you maintain motivation for your goals. When reviewing your budget, you can take the time to say, “This was a tough month. I wanted to spend more, but my money went into my house fund. And I want to own a home.” Then, you can take some time to peruse listings in your desired area to remind yourself of the tangible goal.

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Time-Bound

This term stresses the importance of grounding goals within a time frame – giving them a target date. Anyone can set a goal, but if they lack realistic timing, success becomes less likely. Since financial goals take time, reviewing your finances periodically can help remind you of your goals.

“By the end of 2023, I will have saved up 45% of what I need for a down payment on a house.”

Keep up the motivation! These financial goals can be passive, but it can be easy to overspend. Providing time constraints creates a sense of urgency and will help you stay on track.

When it comes to reviewing your finances, our bankers are always happy to go through them with you for expert support. Contact your nearest banking center at any time to schedule a visit for your free financial check-up.