Invest Safely: Investing Success - SMART Goal Setting

Sunday, January 23, 2011

Investing Success - SMART Goal Setting - M is for measureable

For the second topic in this series, we'll focus on "M"; A SMART goal is Measureable.

You'll need some sort of system, process, or procedure that allows you to record progress toward a SMART goal.

If your job required answering a phone, you might have a goal to answer the phone within the first two rings. But how would you know how often you met your goal?

You need some way to record the number of rings for each call.

Lets continue with the example we started yesterday (saving $24,000 per year). If you save towards this goal in any type of account (bank account, savings account, trading account, etc.), you'll probably have access to a paper or electronic statement that can use to measure the account balance over time.

Or, if you are disciplined enough, you could diligently balance your check book...

Right, lets let the bank handle this one! But don't forget about your personal financial statements! As your account grows, you will also be keeping track of it using your personal balance sheet.