SMART Planning
SMART planning is about giving yourself direction, not pressure. It’s a flexible roadmap, rather than a crystal ball to predict your entire future.
Most people don’t suffer financially because they’re cannot manage money. They fail because they never made a plan.
Setting SMART goals
You may have heard of SMART goals before, used in many different contexts SMART goals also apply to money.
SMART stands for...
Specific: your goal is clearly defined and detailed
Measurable: you can monitor and track progress
Achievable: your goal is realistic for your lifestyle
Relevant: contextually relevant to you and holds meaning
Time-bound: you can set a deadline to achieving it
SMART Goal-setting and Impact on Your Motivation
Read the following statements and tune in to how you feel. How motivated do you feel about committing to each statement?
A. “I want to travel”
B. “I want to save £3,000 over 18 months which is £167 a month ”
No wonder it's hard to save for what you want, when most of the time your thoughts are based on ideas that can only be described as wishful thinking. Both statements equate to the same amount yet your mind cannot fully grasp a vague goal like example A. Example B is SMART, one small step short of putting aside a monthly amount that enables you to save the budget required to travel.
Your Life in Jars
To make planning easier, think about putting together plans in layers.
- Short-term: next 1 to 3 years
- Mid-term: 3 to 10 years
- Long-term: 10+ years
When you think about it this way, it can help reduce overwhelm and feelings of panic. You don’t need to fix your whole life, you just need a direction for the next chapter.
Financial independence is about more than money. It’s about psychological safety. Taking small steps to build security purposefully without guessing and without drifting.
Key Takeaway
Clarity makes everything easier. A SMART plan is simple, flexible and powerful in helping you achieve a secure future.
Learn More
For more practical tools explore these free resources to help you take control of your money.
Article: The Secret Steps to Financial Independence That Most People Overlook By Kristina Byas
Book: Behavioral Finance: The Second Generation by Meir Statman, PhD
