Published: August 2007
Smart Goals by Edgar Bateman III
There is a technique for setting goals called S.M.A.R.T. goals.
S - Specific
I want to have my XYZ credit card paid off by May 1st for example. Statements like I want to pay my credit cards off this year is not specific enough. When you set a specific date and item to pay off. Then you can sit down with your budget and find out how much you must pay each month to reach that goal and/or change the specifics of your goal.
M - Measurable
Statements like I want to increase my net worth are not measurable. I want to increase my net worth by 10% is something that can be measured.
A - Attainable
Sometimes we set goals that are not attainable which can cause us frustration when they are not reached or progress is not very obvious. Saying that you are going to pay off $30,000 in debt in 90 days is not realistic without any additional income. I am not saying that we can't money miracles cannot happen. However, we all know that we must face financial strongholds in our lives and prove ourselves to be good stewards over what God has already blessed us with in order for God to bless us with more.
R - Realistic
For instance, if you are trying to cut back on some things in your budget to save more it is not realistic for a family of 5 to live off of a $150 food budget. If this is what is required to reach this goal then the goal is likely not realistic. Re-examine the goal and set a more realistic target.
T - Tangible
Goals must be something that you can see, feel, etc. Setting goals like I want to manage my finances better this year is not something tangible. Your improvement in stewardship is a matter of opinion.
Now we know how to set goals. How do we execute on our plan and actually reach those goals. There are 3 very important aspects to reaching your goals:
Deadline
Set a timeframe to get it done. Done just say you want to pay off a bill. establish a date you want to have it paid off.
Consequence/Reward
Set a consequence or a reward for reaching and/or not reaching the goal. (Reward) If you reach the goal you could promise yourself a dinner out, of course not paid for on the card you just paid off. (Consequence) You could cut some other luxury out of your budget and take the money and add it to the bill you didn't pay off by your deadline.
Persistence
In order to reach goals you must be persistent and work hard and not give up when you things get rough. Changing behaviors is not easy even if we know it is the right thing and know the result will be worth it.
Persistence is a very important piece to this puzzle. We have to figure out how to get through those rough times when we want to give up.
There is a simple if not always easy way to execute on a goal and maintain the required persistence. Let's take a look at what a goal is. We must also remember that a goal is something that changes what we produce, attain, have, acquire or to put it simply, our output. It comes from us saying that we want something different. In order to have something different we must change the way we think. If not, then we will not be able to reach our goals.
As a man thinketh, in his heart so is he... Proverbs 23:7
If you still think you are broke and in debt then you can want to be debt free but will not be able to attain it. So in addition to focusing on our goals/output we must also consider our inputs and thoughts. We do this by changing what we are listening to, watching and reading.
In business there is a concept called the Pareto Principle or the 80/20 rule. This rule says that 80% of your revenue will come from 20% of your customers and/or 80% of your defects will come from 20% of the products you produce. We can apply this to our lives and reaching our goals by making sure that we do what we need to do with the 20% of our lives that produce 80% of what we have.
That breaks down to about 5 hours per day. Where are these hours? This is the time we spend getting ready for work, driving to work, winding down from work, or just watching TV or some other non valuable task. If we take the time to make sure that we are inputting new and productive things during this 20% of our lives then it will be much easier to reach our goals and as a result change what we have.
Set smart goals and do what is best with the most important 20% of your time and you will have a life that is more fulfilling than it ever has been.
Sincerely,
Edgar Bateman III,
DEBate Enterprises
