S.M.A.R.T. Goals That Are Even Smarter

by Ramona Creel

Get Smart

We're going to do a little role-play, using the example of eliminating debt (a common concern) to take those S.M.A.R.T. goals to the next level! Pretend that you are carrying a pretty heft amount of debt — let's say, $20,000 on your credit cards, another $10,000 owed on your cars, a $50,000 home equity line from when you added on that extra room, and another $125,000 on your mortgage (this may sound like a lot, but it's actually a fairly typical scenario for your average over-extended American these days.) Your goal in the new year is to try to eliminate as much debt as possible, and to trim your budget so that you can pay the maximum toward these bills. A great idea in theory, but how do you turn a nebulous concept like “get out of debt” into a series of concrete, achievable steps? You get smart about it!

  • specific (a resolution called “get out of debt” is too big and vague to be meaningful — you need something to work toward that feels more tangible and purposeful — a goal like “pay off $6,000 of my debt in the next 12 months and adjust my budget so I avoid adding to the balance” is going to resonate with you and motivate you in a way that “get out of debt” just doesn't — it gives you something solid to work toward, a light at the end of the tunnel that you can actually see)
  • making specific even smarter (redefine your goal in more specific terms, but don't just stop there — the next step is to break that one big goal down into a set of smaller mini-goals, making them easier to accomplish — goals like “pay off my highest-interest debt first” and “refinance my mortgage for less than 4% interest” and “stop using all credit cards until the balance is zero” are going to help direct your actions when it comes to accomplishing your bigger goal — the two work together in tandem, one providing the big picture, and the other clarifying the details)
  • measurable (the trick to accomplishing any goal is being able to measure your progress toward completion — how exactly do you quantify “improve my financial situation” so you know when you've achieved that objective? you can't! — your only hope of success comes from attaching a number to your goal so that you can tell whether you're on track, falling behind, or ahead of the game — when you change “improve my financial situation” to “pay off $6,000 of my debt and put a further $2,400 in savings for emergencies,” you're setting a much more measurable goal — and don't forget to actually track your progress each month on a spreadsheet or in an accounting program — measurable is only useful if you can actually see what you're accomplishing, and the impact will be even greater if you can convert your numbers to a graph or chart format)
  • making measurable even smarter (deciding on a measurable end-result of your goal is great, but breaking that down into monthly or weekly increments is even better — looking at that $6,000 payoff and $2,400 in savings might seem overwhelming — how are you going to accomplish that? — by paying $500 a month toward your debts and $200 a month into savings — and taking that measurement each week or month is not only going to help you stay better-informed about your progress, it will also keep you motivated to stick with it to the end)
  • action-oriented (too often, we set goals that are passive rather than active — it's almost as if we expect our wildest dreams to just materialize out of thin air, instead of recognizing that we have to work for what we want most — a goal like “be in a better financial position in December than I am in January” is meaningless — what's going to cause it to happen? — you're more likely to take the necessary steps when you create a goal with a lot of verbs in it, because those “action words” remind you that some effort is required on your part — go instead for a goal like “reduce my spending level so it falls below my income level and devote the difference to paying off my debt” and you'll have more success)
  • making action-oriented even smarter (a single action-oriented goal is better than nothing — but if you really want to blow your goals out of the water, break each one down into a series of action-oriented steps — ask yourself what exactly needs to happen in order to make that goal a reality, then turn each of your answers into its own mini-goal — so in balancing your spending and income levels so you can pay off debt, you might find a series of mini-goals like “review the past year's credit card, bank, and payroll statements” / “create a spreadsheet detailing my income and expenses for the past 12 months” / “review each cost category and look for specific ways to reduce those expenses until total outlay is less than total income” / “pay the difference between income and expense each month toward the highest-interest debt and the minimum on everything else” / “once that debt is paid off, move to the next highest-interest debt, adding the payment for the previous debt to it” / “continue until all debts are paid off” — now that's action-oriented!)
  • rewarding (people tend to set goals for themselves that are more of a burden than a joy to accomplish — but if you aren't having fun, or at least seeing some benefit from your actions, you won't stick with it — and when it's a goal that requires you to give up something that you enjoy like spending, because it's causing something detrimental to your life like debt, you need to replace the lost item with another reward — throughout the process, remind yourself how good it will feel to be debt-free, to have that stress lifted from your shoulders — and whenever you feel the urge to splurge, take a look at your spreadsheets and see how much progress you've made — you'll be less inclined to blow it all when you can see how far you've come)
  • making rewarding even smarter (keeping your eye on the big prize at the end is one thing, but giving yourself more tangible rewards along the way is going to feel a lot sweeter — create a plan right from the beginning for rewarding yourself as you achieve each of your mini-goals — when you pay off that first credit card, you will have some friends over for a nice dinner to celebrate — when you save enough for your emergency fund, you will spend a whole Saturday catching up on video rentals you've been dying to see — once you've refinanced your mortgage, you're going to repaint the kitchen the color you've always wanted it instead of that hideous yellow — it doesn't have to be an expensive reward to be motivating)
  • timely (the final step in achieving any goal is setting a deadline — ask anyone trying to complete their PhD and they'll tell you that projects can drag on forever if you don't have a specific finish-line you're aiming for — unfortunately, with most goals, there's no external task-master cracking the whip, so you have to be the one to choose an ending date — be realistic but also try to challenge yourself to really work for that deadline — of course you can eliminate your debt in 10 years, but why not attempt to do it in five? or even two?)
  • making timely even smarter (sometimes that final deadline can be a bit hard to achieve without a few intermediate milestones — saying that you're going to be debt-free in a year is one thing, but when will you need to accomplish each step along the way to make that happen? — pull out your list of steps and work backward from the end, figuring out a reasonable time-frame for each — if it turns out that you simply can't do them all in the space allotted, extend your final deadline — if you think that you can get them accomplished faster, move it up some — then at each step along the way, you only need to worry about the next milestone, rather than the deadlines for 12 other steps after it — this is a nice way to keep your eye on the prize without becoming overwhelmed)

© Ramona Creel, all rights reserved. Ramona Creel is a modern Renaissance woman and guru of simplicity -- traveling the country as a full-time RVer, sharing her story of radically downsizing, and inspiring others to regain control of their own lives. As a Professional Organizer and Accountability Coach, Ramona will help you create the time and space to focus on your true priorities -- clearing away the clutter other obstacles and standing in the way of that life you've always wanted to be living. As a Professional Photographer, Ramona captures powerful images of places and people as she travels. And as a travel writer, social commentator, and blogger, she shares her experiences and insights about the world as we know it. You can see all these sides of Ramona -- read her articles, browse through her photographs, and even hire her to help get your life in order -- at www.RamonaCreel.com. And be sure to follow her on Twitter and on Facebook.