Final answer:
SMART goals stand for Specific, Measurable, Attainable, Realistic, and Timely. This acronym represents a structured approach to setting clear and trackable objectives that are achievable within a defined timeframe, which are especially useful for making sound financial decisions.
Step-by-step explanation:
When you hear the term SMART goals, it refers to a framework for setting objectives that are well-defined and achievable. SMART is an acronym representing five key characteristics of goal-setting:
- Specific: Goals should be clear and detailed, not broad or general, stating exactly what is expected.
- Measurable: Goals should have criteria for measuring progress and success, making it easy to track your achievements.
- Attainable: Goals need to be realistic and achievable within your current resources and time constraints.
- Realistic: They should be practical, considering your abilities and circumstances.
- Timely: A target date for completion creates urgency and prompts action.
Using SMART goals can significantly help you make well-informed financial decisions that guide you towards your future aspirations.