We’re heading into a new year, which means many of us will soon be making our New Year’s resolutions. Each year, around 2 out of 3 Americans make a resolution related to financial goals. However, statistically, 80-90% of our resolutions will fail (often within the first few weeks of the year!) So, how can you turn your financial resolutions into a plan that will actually stick? The answer is SMART goals! SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. Let’s break down these five concepts.
1. Specific
Specific goals give you a clear target.
“I want to save money” may be a great idea for a goal, but you will be able to reach your target more easily when it is more specific. Try something like, “I want to save $1,000 for my emergency fund”, instead.
2. Measurable
To reach your goals, you need to track your progress. If your goal is to save $1,000 in 2026, you can measure how much you save each month to keep track of your progress.
Tip: Measuring your goals frequently can keep you motivated to achieve long-term goals. Consider planning a reward for yourself once you reach a milestone. For example, for every $250 you save toward your $1,000 goal, reward yourself with something small that you have been waiting to buy, like a new book or a ticket to the movies.
3. Achievable
Be realistic!
Maybe it is doable for you to save $100 a month for 10 months to reach $1,000, but not to save $500 a month to reach $5,000. Setting your goals too high can lead to frustration.
4. Relevant
Don’t forget to think about your goals in context.
Does your goal fit your life? Why is it important to you? Building an emergency fund may be important to you because it will help you handle unexpected expenses without going into debt.
5. Time-bound
Set a deadline… and keep it!
For example: “I will save $1,000 for my emergency fund by October 31.” Deadlines keep you motivated and on track.
Why SMART Goals Work
SMART goals turn big dreams into small steps. They help you stay focused and celebrate progress along the way. Whether you want to stick to a budget, pay off debt, save for a vacation, or build an emergency fund, SMART goals make it possible. (Tip: SMART goals aren’t just for finances; you can use this same framework for your other goals, too!)
Get Started!
Grab a pen and write down one SMART financial goal today. Small changes add up to big results.
Want help setting or achieving your financial goals? You’re in the right place! We offer education and resources on many topics such as budgeting, managing credit and debt, building savings, housing, investments, retirement, and estate planning. Reach out to UF/IFAS Extension Clay County at (904) 284-6355 or email Ella Dinkins at edinkins@ufl.edu.
Sources:
https://fisher.osu.edu/blogs/leadreadtoday/why-most-new-years-resolutions-fail
Fidelity’s 17th Annual Resolutions Study
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