When you practice Smart Finances, you understand how money management works. It’s not just about earning money, but also about creating ample savings and growing your assets. In other words, if you understand how to earn money, do you know how to hold on to it and make it grow?
Smart Finances requires that you plan not only for immediate financial needs or wants, but also for the long-term. And, Smart Finances may require you to be open to alternative ways to generate additional income.
Businessman and author Paul J. Meyer first described SMART goals in his 2003 book, Attitude Is Everything: If You Want to Succeed Above and Beyond. SMART criteria are five characteristics that help make goals effective and meaningful.
• Specific: Defines what you want to accomplish, who is involved, where, when, and why.
• Measurable: Includes indicators and metrics that can track progress.
• Achievable: Ensures the goal is realistic and attainable, and that you have the necessary skills, resources, and time to accomplish it.
• Relevant: Determines if the goal aligns with broader goals and is important.
• Time-bound: Sets a deadline for accomplishing the goal.
Once you have identified your goals using the SMART criteria, the next step is to create a plan of action. Here is an example of a SMART financial goal: “I am increasing my income by $3,000 within the next six months. I can do this by obtaining a raise at my job, by getting a higher paying position, or by working more at my home-based side hustle.”
This smart financial goal is specific and is measurable by dollar amount—$3,000 within six months translates to $500 each month, which is realistic and not a “dream goal.” It is relevant, aligning with the goal of earning more money. And it is time-bound—although there are six months to achieve the goal, it is stated in a positive and present way, not as a vague or future possibility.
Post-pandemic, many people decided they liked working from home and were willing to make sacrifices to continue doing so. This may have required quitting a job, finding a permanently remote position, working in a hybrid role or committing to entrepreneurship. No matter where or how you work, it’s always prudent to live with smart finances. When you choose to join Nikken, we are here to support you every step of the way—whether it’s your side hustle or new business endeavor.
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