SMART Goals

What does SMART stand for in the context of financial goal setting?

• • Simple, Measurable, Achievable, Relevant, Timeless

• • Strategic, Measurable, Attainable, Realistic, Timely

• • Specific, Measurable, Achievable, Relevant, Time-bound

• • Significant, Measurable, Actionable, Relevant, Timeless

Why is it important to make financial goals specific and well-defined?

• • To make them more challenging

• • To avoid setting any goals

• Vague goals allow for more flexibility in financial planning

• • To ensure clarity and reduce ambiguity

How does the "M" in SMART financial goal setting differ from the "S"?

• • "M" emphasises setting a goal that matters personally, while "S" is about specificity.

• • "M" involves quantifying the goal to make it measurable, while "S" is about making the goal clear and specific.

• • "M" focuses on creating goals that are manageable, while "S" is about setting goals that are significant.

• "M" refers to the financial motivation behind the goal, while "S" is about setting a timeframe for the goal.

Which of the following represents a SMART financial goal?

• I want to save money.

• I might save some money this year for the down payment of my dream car.

• I will save as much as possible whenever I can.

• I will save RM500 per month for the next 12 months to create an emergency fund.

Why is it important to align financial goals with personal values (the "R" in SMART)?

• •  It makes the goals less specific.

• • It ensures that goals are entirely unrelated to one's values.

• • It creates a stronger motivation to pursue and achieve the goals.

• • It has no impact on the achievement of financial goals.

A goal should be __________ so you know when you have achieved it.

• specific

• realistic

• achievable

• measurable

Make sure the goal is within reasonable reach.

• Measurable

• Achievable

• Specific

What does the R in SMART stand for?

• Responsible - a goal must allow you to take charge.

• Respectful - a goal must allow you to be kind and polite.

• Relevant - a goal must be something that is important to YOU

• Repeatable - you must be able to do the goal over and over again.