Smart Goals

1. True or False: Setting goals can serve as a powerful motivator for

2. individuals to take action and work towards achieving their aspirations.

• True
• False

True or False: Failing to reach one's goals always results in negative

consequences, such as diminished self-esteem and a sense of failure.

• True
• False

True or False: Not setting any goals in life can lead to a lack of direction and purpose,

potentially causing dissatisfaction and a feeling of being adrift in one's life.

• False
• True

What best describes the difference between short-term, mid-term, and long-term goals in financial planning?

• Short-term goals are achieved within two years, mid-term goals within 10 years, and long-term goals take more than 10 years to achieve.

• Short-term goals are typically small, mid-term goals are moderate in size, and long-term goals are massive financial achievements.

• Short-term goals involve spending money, mid-term goals involve saving money, and long-term goals involve investing money.

• Short-term goals are achieved within a month, mid-term goals within a year, and long-term goals are those achieved in retirement.

When planning for short-term financial goals, which of the following strategies is most important?

• Acquiring real estate for long-term appreciation

• Developing a 30-year retirement plan

• Investing in a diversified stock portfolio

• Setting aside a portion of each paycheck for savings

A mid-term financial goal could include:

• Purchasing a new car within the next six months.

• Saving for a down payment on a house in the next 2-5 years.

• Funding your child's college education that's 15 years away.

• Planning for retirement in 40 years.

Long-term financial goals often involve:

• Emergency savings for unexpected expenses.

• Paying off credit card debt within the next year.

• Building a retirement nest egg over several decades.

• Going on a vacation next summer.

Which of the following is an effective strategy for planning and achieving long-term financial goals?

• Relying solely on Social Security benefits for retirement income.

• Consistently contributing to a retirement savings account and investing wisely.

• Saving money without any specific long-term goals in mind.

• Taking out high-interest loans to fund long-term investments.

Why do people set goals?

• To impress others

• To motivate themselves and track progress

• Because society expects them to

• To win prizes and rewards

What is one potential consequence of not setting goals or failing to reach them?

• Increased self-esteem and self-worth

• Decreased motivation and direction in life

• Improved time management skills

• Better physical health