By Golden 1 Credit Union

April is National Financial Literacy Month, which highlights the importance of financial education and maintaining healthy financial habits. Financial education enables people to make informed decisions about finances and achieve financial goals. Without proper financial education, it could be challenging to navigate the complex world of money and finances.

Financial Literacy Month is also a great time to set financial goals. It’s important to remember to set goals that are both manageable and motivational to create a path for success. Be intentional about how you want to not only achieve goals, but how you can progress to ensure they don’t become an afterthought.

You can strive to keep financial goals by following the SMART formula: specific, measurable, attainable, relevant, and time bound. Here’s how Golden 1 Credit Union, one of the nation’s largest credit unions, recommends using the SMART formula in five easy steps:

1. Be specific with the goals you are setting

When creating goals, it’s often common to create general ones that are too broad and don’t have direction. Instead, try including specific goals and distinct tasks that can make sticking to them easier.

For example, instead of your goal being “I want to save money,” adjust it to be more specific such as “I am going to save $200 every month for the next six months.” Utilizing financial apps can help set up a recurring transfer from your checking account to a dedicated savings account.

2. Create goals that are measurable

It's hard to achieve a goal when there is no final marker to measure success. Having a measurable goal not only keeps you motivated but also helps keep track of overall progress.

For example, instead of a generalized goal of saving money, choose a specific number such as a goal of saving $1,500 by the end of the year. You can start saving $125 every month and check your balance along the way to ensure you’re on track or see if you need to make any adjustments to meet your specific savings goal.

3. Determine if your goals are attainable

Sometimes we want to see results immediately without understanding the amount of work needed or the financial factors at play. When creating any goal, especially a financial one, it’s important to remain realistic and focus on outcomes that are attainable.

For example, having a large amount of debt you want to pay off, but also wanting to make a large purchase such as a new car or house may not be feasible. Although making a big purchase may be a want, it might not be attainable while also paying off debt. You have a better chance of success if the goal is attainable, and it’s best to focus on goals we can afford to accomplish.

4. Ensure your goals are relevant

Creating and dreaming of a goal that is personally relevant to you can add extra motivation.

For example, buying a house may be a huge personal goal that you want to achieve this year. Make the necessary steps to research home loans, find a Realtor, and start learning which style home may fit you best. Picking a relevant financial goal is all about what you see for your future.

5. Set time boundaries for your goals

When submitting assignments or a work project there is always a deadline that allows you to plan accordingly to accomplish the task. The same should go for any financial goal you would like to achieve.

For example, if you want to pay down debt, save a specific dollar amount, or pay off a mortgage or car loan, it’s important to set a timeline for yourself. This allows you to plan ahead, stay motivated, and feel accomplished when that goal has been met.

In today’s world, there are countless ways to learn about finances, including how to save. Golden 1 serves all those who live or work in California and offers free educational resources through its Financial Wellness Center including videos, podcasts, webinars, and interactive learning modules on a variety of topics, such as how to set an achievable budget and stick to it. It’s important to remember that even if you don’t accomplish every one of your goals, the act of making them and thinking SMART when working toward them can still have positive effects on your financial wellness.