Are you tired of living paycheck to paycheck, wondering where your money goes, and feeling like you're not getting ahead? You're not alone. In today's fast-paced, expense-filled world, it's easy to get caught up in the cycle of financial stress. But what if you could break free from the cycle and take control of your finances once and for all? Setting SMART financial goals is the first step towards achieving financial freedom and living the life you deserve. In this article, we'll explore the power of SMART goal-setting and provide you with a step-by-step guide to setting financial goals that will transform your relationship with money forever.

How to set SMART financial goals

​​​​​Here are 7 key points to help you set SMART financial goals:

1. Specific: Clearly define what you want to achieve, avoiding vague statements like "I want to be rich" or "I want to save money". Instead, specify what you want to achieve, e.g., "I want to save for a down payment on a house", "I want to pay off my credit card debt", or "I want to build an emergency fund".

2. Measurable: Quantify your goal so you can track progress and stay motivated. For example, "I want to save ₦5,000,000 for a down payment on a house" or "I want to pay off ₦800,000 in credit card debt". Having a specific amount in mind will help you create a clear plan.

3. Acchievable: Ensure your goal is realistic based on your income, expenses, and financial constraints. Consider your budget and financial obligations before setting a goal. For instance, if you earn ₦500,000 per month, saving ₦200,000 monthly might be achievable, but saving ₦500,000 monthly might not be.

4. Relevant: Align your goal with your values and priorities. Ask yourself, "Is this goal truly important to me?" or "Will achieving this goal improve my financial well-being?". For example, if becoming a homeowner is a top priority, saving for a down payment is a relevant goal.

5. Time-bound:  Set a specific deadline for achieving your goal, e.g., "within the next 12 months" or "by the end of 2025". Having a timeline will help you stay focused and motivated.

6. Written: Write down your SMART financial goal and review it regularly to stay focused and track progress. Consider creating a vision board or posting your goal somewhere visible to remind yourself of what you're working towards.

7. Accountable: Share your goal with a trusted friend or family member and consider regular check-ins to track progress and stay motivated. Having someone to hold you accountable will help you stay on track and overcome obstacles.

A Sample

​​​​​Here's an example of a SMART financial goal for ₦100,000 (you can also use this template to set yours)

I want to save ₦100,000 for an emergency fund within the next 6 months."

Breakdown

- Specific: Save for an emergency fund

- Measurable: ₦100,000

- Achievable: Based on my income and expenses, I can realistically save ₦16,667 per month for 6 months

- Relevant: Having an emergency fund will help me cover unexpected expenses and avoid debt

- Time-bound: Within the next 6 months

- Written: I will write this goal down and review it monthly to track progress

- Accountable: I will share this goal with my partner and schedule monthly check-ins to stay on track

Action plan

- Set up automatic transfers of ₦16,667 from my checking account to my savings account on the 1st of each month.

- Review my budget to ensure I can afford the monthly savings amount.

- Consider ways to increase income or reduce expenses to accelerate savings.

- Use the 50/30/20 rule to allocate my income: 50% for necessities, 30% for discretionary spending, and 20% for saving and debt repayment. 

By following these points and example above, you'll be able to set SMART financial goals that will help you achieve financial freedom and success. Remember to review and adjust your goals regualrly as your financial situation changes.