×

Goal Setting

After budgeting, you can begin to set your goals with any excess income you may have.

This goal could be anything, for example, to save for an emergency fund (3 months’ worth of expenses) to pay off a debt or to begin investing.

Whatever your goals, it’s important that they are SMART.

Specific
Measurable
Achievable
Realistic
Time-bound

An example of this could be:

My goal is to pay off my interest free credit card within 6 months. There is an outstanding balance of £600 and after budgeting; I know I have £100 per month spare. By paying off £100 at the end of each month, I will have paid off my credit card in 6 months.

This method could be applied to both saving and debt repayment.

The next section will look at borrowing money in more detail.

In this section

january

Budgeting

retirement

Goal setting

Borrowing money

Paying off debt

pensions

Credit scores