Achieving Financial Success for 2025 (The S.M.A.R.T Way)

The Pew Research Center found that right behind health, exercise or diet, people are most likely to make a New Year’s resolution to improve their finances. The study also found that those who make resolutions are more likely to keep them.  

One of the best ways to stick to a financial goal is by using the S.M.A.R.T method. 

1) Ask yourself: what is your financial goal?  

Here are some examples of financial goals you may be hoping to achieve: 

Saving for a vacation 
Growing your emergency fund 
Saving for school or to buy a house 
Paying off debt 
Living independently 
Getting ready for Retirement  
Being able to afford a hobby like playing an instrument 

As you can see, there aren't any rules to making a financial goal for 2025. It can be something fun or practical. 
You get to be the CEO of your financial life and decide how you want to improve your finances.

2) The breakdown of the S.M.A.R.T method

Now that you have your financial goal, this is the breakdown.

S – Specific 

M – Measurable 

A – Achievable 

R- Relevant 

T – Timebound  

Specific 
What am I hoping to achieve?  
Who will benefit from my financial goal?  
What specific thing will I accomplish? 

Example: If you are planning to save for a big vacation, don’t say your goal is to plan for a big vacation. Write down every detail. Are you flying to this destination? How much is a round-trip ticket? If you are driving, how much will gas cost to get to your destination? How much are hotels each night? How much might it cost you to go out to eat, visit attractions, and travel within your destination? Do you need to buy traveler’s insurance or special clothing for this trip? Do you have a pet that needs to be boarded? That would be another expense. Figure out exactly how much this trip will cost you. Saving $2,000 or $500 is too general. Each dollar should be accounted for. 

Measurable  
How much does it cost?  
How will I know when I accomplished my goal? 
How can I check my progress? 

Example: If you are trying to save over $100,000 for retirement, you can consider your monthly expenses and income to figure out how much to save each month towards your financial goal. To learn more about how much to save for retirement, check out Brooklyn Public Library’s retirement resources.  

Achievable 
Is this goal something that I can actually achieve?  
Do I have the tools and support I need to accomplish this goal? 
 
Example: If you tell yourself you want to be a millionaire tomorrow, that is probably not achievable for most of us. It is best to think about why you want to be a millionaire. Is it the luxurious lifestyle? The ability to go out to eat whenever you please or maybe it is the endless pampering? Maybe you want more pedicures? Whatever it is you dream, make sure it is something you can actually achieve with the right budget. You will get discouraged if you are chasing a goal out of reach.

Relevant 
Is this something I need? 
Is this a goal I even want?  

Example: If you were saving to buy a car, but you end up moving to Brooklyn in an area you can get to work with a train, you may find this financial goal is no longer relevant and want to readjust what your S.M.A.R.T goal is. It is not only difficult, but little fun to save for a goal you aren't into.

Time bound 
When will I reach this goal?  
Is the time frame reasonable? 

Example: Maybe you are hoping to attend culinary school, but it is too expensive right now, so you save for the next school year. This would be a great way to measure how you can save with an end goal in sight. It is no fun to save and save without knowing when you might achieve your goal!

This blog post was inspired by the S.M.A.R.T goals tool at the Consumer Financial Protection Bureau.