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You Are Here: Home » Goals » How to Create SMART Financial Goals – Is It Time Bound?

How to Create SMART Financial Goals – Is It Time Bound?

Published or updated December 11, 2014 by Glen Craig

We’re reaching the end of our SMART goals.  We’ve gone through making the goal specific, being able to measure it, making sure it’s attainable, and looking at how relevant it is.  Now we’ll ask if your goal is Time-Bound?

A good goal will be time-bound or timely.  It will have a starting point, an end point, and measurable time or milestones in-between.  Time adds dimension to specific, measurable, attainable, and relevant.

By making your goal time-bound you give yourself a framework to focus with.  Without deadlines for your goals, it’s easy to let your goals drift away and be put off for other things that may seem more pressing.  You need to know when your goal will end.  A finish point can be a big part of whether your goal was a success or not.

Time makes your goal more specific.  “I’ll eliminate this credit card debt in eight months.”  Time adds the “when” to your goal when you are flushing out the specifics.

Time makes your goal more measurable.  “I’ll put away X dollars every Friday then pay of N dollars extra on the 3rd of the month with my bill.”  Time tells you when aspects of your goal need to be done by.  It helps to keep you accountable as you measure your goal.

Time puts a bounds on the attainability of your goal.  Paying off your debt by next week is impractical while giving yourself ten years may be too much time.  Too little time and you may be putting too much stress on yourself while too much time may not have enough of an effect.  It needs to get done in a specific time to make it a real attainable goal.

Time helps answer if the goal is relevant.  Is the time needed the best use of my time?

Time is the final piece of the SMART goal strategy (Specific, Measurable, Attainable, Relevant, Time-Bound).  In all, this can be an effective way to make sure the goals you set will be achieved.

Make your goals SMART and achieve all that you can!

Filed Under: Goals Tagged With: how to create smart financial goals, time-bound goals

About Glen Craig

Glen Craig is married and the father to four children that he spends the day chasing as a stay-at-home-dad. He took an interest in personal finance when he realized most of his paycheck was going toward credit card bills. Since then he's eliminated his credit card debt and started on a journey towards financial freedom.

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Comments

  1. Matt says

    January 10, 2011 at 11:00 am

    For me, a combination of a “loose” time framework combined with an approximate dollar goal (I’ll save around $500 for a new bike within the next 6-8 months, for example) seems to work the best. I don’t beat myself up if I only have $430 after 9 months. I still have a chunk of savings for whatever goal I’m after, without feeling too much resentment at myself for not hitting the exact mark at the exact time.

    • ffb says

      January 10, 2011 at 6:58 pm

      But you still have a time frame which is important.

      Different goals require different variations and guidelines on what you want to achieve and how and you have to know yourself as well.

  2. krantcents says

    January 10, 2011 at 7:38 pm

    I think this an important part of holding ourselves accountable. If your goal was save $100 by Friday, is $90 okay? That is up to you! If you needed $500 for your rent, is $490 okay? Probably not! If I wanted $5 million by the time I retire, is $4.9 okay? Probably yes! I agree with your answer to Matt.

  3. Kristeen Smith says

    January 12, 2011 at 2:38 am

    Hello,

    I was hoping I could write a guest post on your website http://freefrombroke.com/, with an article related to your site, I believe this will be of interest to your readers. The article will be 100% original, written just for your blog and will not be posted else where. Of course this will be completely free for you, however I would appreciate a live link back to our site. If you’re interested in this idea, please get back to me. I would like to add one more thing, I will promote the content on social networking sites which will help the post to get traffic and serp ranking.. If you are looking for link swap from a high page rank site, let me know I can go for that deal too which will be free..

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Glen CraigI'm Glen Craig - I used to live paycheck-to-paycheck, drowning in credit card debt. I turned that all around and now I build wealth rather than debt.

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