My Budget Goals

Interactive Video

[An apartment complex with a “For Rent” sign in the front yard.]

Narrator: People have different goals in mind when they decide to budget—some are trying to catch up on savings or paying off debt; others are trying to get ahead to invest in their futures. 

[A fork in the road with one path leading to “pay off debt” and the other leading to “save for retirement.”]

Whether you are trying to save more, gain control of your money flow, save for a big vacation, a car or house, or the future in general, goals are great motivators.

[An animation shows 4 icons: a piggy bank, a dollar sign, a boat with sun in the sky, and a bar graph with a clock; moving toward a target, and then disappearing after making contact.]

Think about your current money situation. Write down three things that you would like to accomplish with your money by the end of this year if you used a budget. It can be anything! Keep it simple; don’t try to write fancy goals - just simple notes like “save for an apartment security deposit” or “pay off a credit card.” There are no right answers; this is all based on your personal situation.

[3 text input boxes for entering 3 budget goals.]

Ok, great, we’ll come back to those ideas later.

[A list of the goals entered on the previous screen.]

According to the Journal of Applied Psychology, “The more specific your goals are, the more motivated you become, increasing your chances of achieving your goals.”

[The quote from the Journal of applied Psychology displayed on the page.]

Money or budget goals shouldn’t be treated any different—be S.M.A.R.T. about your goals.

[A woman sitting in front of her laptop reading a budgeting sheet in a spiral notebook.]

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-Based. Select each card to explore the SMART components.

Card 1: 

Front - Specific

Back - If a goal is  specific, it gives you a focus.

Card 2:

Front - Measurable

Back - If a goal is measurable, it provides evidence of what you accomplished.

Card 3:

Front - Achievable

Back -  If a goal is achievable, you’ll think it’s possible.

Card 4:

Front - Relevant

Back - If a goal is relevant, it has meaning to you. 

Card 5:

Front - Time-Based

Back - If a goal is time-based, it holds you to a deadline to get it done.

Financial goals created with the SMART format work best when they are focused on shorter-term achievements. That way, you can revisit your goals, make adjustments, and see progress. They also give you a mental boost sooner when you achieve them. That is great motivation to keep going and  build toward longer-term goals.

[An animation that shows an empty jar with a label of $500 becoming a half-full jar with a new label of $1000. The jar then becomes completely full. A clipboard, next to the jar has a piece of notebook paper on it with the goal, “Save $500 in 4 months for an emergency fund,” printed on it. The $500 is crossed out and becomes $1000.]

Take a look at an example of a well-written SMART budget goal. This can give you an idea of how to come up with your own.

[On-screen text]

Goal: Deposit $150 per pay period into my savings account to save $1500 for an apartment security deposit by the end of December.

• Specific: an apartment security deposit
• Measurable: $1500 in savings account
• Achievable: $150 per pay period
• Relevant: ready to be independent
• Time-bound: end of December

Ok, so let’s now revisit that budget-related list of things you’d like to accomplish this year. Pick one that is the most important to you right now. 

[The 3 budget goals entered on a previous screen with check boxes next to them.]

Now let’s take that idea and fill in the SMART framework with information.

[On-screen text]

Fill in the SMART framework with information.

Specific: What will your focus be?

[A text entry box for entering a specific focus for the budget goal.]

[On-screen text]

Measurable: What would be the actual evidence that you accomplished your goal?

[A text entry box for entering a measurable component for the budget goal.]

[On-screen text]

Achievable: What would make this realistic and possible to do?

[A text entry box for entering an achievable component for the budget goal.]

[On-screen text]

Relevant: What makes this important to you? Why would you do it?

[A text entry box for entering a relevant component for the budget goal.]

[On-screen text]

Time-Bound: When can you complete this goal?

[A text entry box for entering a time component for the budget goal.]

Ok, let’s put it together now. Look at the notes you wrote for each letter and put them together into a goal statement. Use this template to help create in your statement.

[On-screen text]

Enter your goal in the template by typing over the text. Use the SMART ideas for reference.

A goal template with text entry boxes

I will [enter Specific Focus - use action verb] [enter Measurable evidence - use nouns]

by [enter Time-Based deadline]

by [enter how you will do it-Achievable]

because [enter why it’s important-Relevant

[Smart components entered on previous screens displayed at the bottom of the page for reference.]

Take a second to jot down this goal. You could add it to your action steps later, if you want to.