Make It SMART: The One Thing You Should Do to Set Better Goals

Now that we’ve convinced you that you need to set goals, it’s time to talk about setting SMART goals. You may have heard the term SMART before, but if not, it stands for Specific, Measurable, Attainable, Relevant, and Time-bound. Using this principle is critical for setting high-quality goals that you can actually achieve.

All goals are not created equal. Have you ever set a New Year’s goal of exercising more only to continue to have to re-set it year after year? If you didn’t make this a SMART goal, you likely had no idea where to start with making this a reality or figuring out if you achieved this goal. SMART goals help you move out of the realm of dreams and into the realm of action. Let’s walk through setting and refining a goal using the SMART technique for a common goal: “I want to buy my first home.”

Specific

Your goal should define what you want you to accomplish and who is involved with accomplishing it. Example: I want to save enough money to afford the down payment for a $300,000 house.

Measurable

Your goal should define a key performance indicator or metric that you can measure your progress against. Example: I want to save a 20% down payment for a $300,000 house.

Attainable

Your goal should be reasonable based on your skills, finances, and other factors that would contribute to the attainment of your goal. This does not need to be included in your goal statement but attainability should be considered when developing the statement. Example: I want to save a 20% down payment for a $300,000 house. I make $70,000 a year, so this is an attainable goal within a reasonable time frame.

Relevant

Your goal should be relevant to the current state of your life and/or your long-term vision for yourself. This does not need to be included in your goal statement but relevance should be considered when developing the statement. Example: I want to save a 20% down payment for a $300,000 house because I need a bigger space and to build equity.

Time-bound

Your goal should have a target date or deadline otherwise it may drag on forever with no real progress. Example: I want to save a 20% down payment for a $300,000 house in 5 years.

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We went from, “I want to buy my first home,” to “I want to save a 20% down payment for a $300,000 house in 5 years. At an average of $12,000 of savings required per year, this is attainable on my salary. This is relevant to me because I need a bigger space and want to build equity.”

Now you have a well-defined goal and a solid foundation for building a plan to achieve this goal. While it took some time to walk through this example, the more you utilize the SMART concept, the more it will become second nature when setting goals. This principle has been the single most important tool for me in setting better, achievable goals, and I hope it will be as transformative for you.