One Key to Increasing Wealth: Setting SMART Goals

You can take many paths to increased wealth1,2,3, but it helps to have a recognized and easy-to-apply framework to structure your goals. The S.M.A.R.T. framework provides the structure and accountability4 that can help you turn your financial intentions into tangible results.5

Consider using the S.M.A.R.T. strategy to achieve financial goals like saving for college, starting a business, growing your income, paying off debt, reducing your taxes, or accumulating tangible assets.

Setting S.M.A.R.T. Goals to Unlock Hidden Wealth

S.M.A.R.T. stands for Specific, Measurable, Attainable, Relevant, and Time-bound. Setting financial goals using these parameters can produce your desired results — and can create momentum that leads to wealth growth.

• Specific goals identify a well-defined outcome.
• Measurable goals establish an identifiable standard for success.
• Attainable goals aim for the possible.
• Relevant goals align with your priorities.
• Time-bound goals create urgency.

These five elements turn mere wishes into distinct targets with firm deadlines that, when achieved, can multiply into significant increases in income, net worth, and long-term financial security.

S.M.A.R.T. Goals: Two Examples

So what do S.M.A.R.T. goals look like in real life. Here are two examples.

Growing Your Retirement Account

Let's say you want to increase the size of your retirement account over the next several years so you can retire more comfortably. Here's how you would express that as a S.M.A.R.T. goal:

"I add $300,000 to my retirement account over the next five years by adding $5,000 per month to it during that time."

This seems simple, but it is a S.M.A.R.T. goal because it's:

Specific: It provides a monthly amount you'll save to reach your goal.

Measurable: Since you've defined the exact amount you'll save monthly, you can track your monthly progress toward your goal.

Attainable: You know with your income and assets, you can save this amount monthly. But, if your income changes, you can adjust your monthly goal to make saving the money achievable.

Relevant: Your goal is to increase the amount you save each month to your retirement account. So, you increase savings by a specific amount each month to achieve a number that you believe will improve your retirement experience.

Time-bound: You've set a five-year timeframe, which allows you to track your progress toward the goal and make necessary changes.