Financial Planning Fundamentals (ACBUS107A): SMART Goals Explained

This assignment analyzes the application of SMART goals across various aspects of financial planning. It outlines specific, measurable, achievable, relevant, and time-bound goals, including debt reduction, savings, and investment strategies. The assignment details how to reduce expenses, manage debt, save for retirement, and contribute to superannuation. It provides a framework for setting financial objectives, emphasizing the importance of disciplined saving, and the role of time horizons in achieving financial stability. The analysis covers the importance of setting financial targets and offers insights into the process of saving for college and retirement, ensuring the student's financial well-being. The assignment is based on ACBUS107A Financial Planning Fundamentals.

TEMPLATE FOR SMART GOALS
GOAL 1: REDUCE EXPENDITURE
SPECIFIC Limit use of credit cards, scrap holiday allowance
MEASURABLE At the end of a period what has been saved can be measured
ACHIEVABLE The budget to give guidance
REALISTIC There are areas where expenditure need to be curbed
TIME The time the process may start and end can be ascertained
SUMMARY The goal will reduce expenses as envisaged
GOAL 2: REDUCE DEBT
SPECIFIC Do not borrow by use of credit cards
MEASURABLE The reduction in debt can be determined in dollars
ACHIEVABLE It can be done
REALISTIC It should be done because the debt has become burdensome
TIME The timing can be ascertained
SUMMARY Debt burden to reduce
GOAL 3: MAINTAIN CASH RESERVE OF $10,000
SPECIFIC Send surpluses to the reserve
MEASURABLE The amount to be set aside for the purpose can be determined in dollars
ACHIEVABLE The client has the capability to do it
REALISTIC It should done because it will contribute to the future well-being of the client
TIME When the action will start and end can be determined
SUMMARY Maintaining a cash reserve is SMART

GOAL 4: BOOST CONTRIBUTIONS TO SUPERANNUATION
SPECIFIC Client to increase contributions
MEASURABLE The extra amount contributed can be determined in dollars
ACHIEVABLE The client has the capability
REALISTIC It should be done for increased benefits
TIME Beginning and the end of the contributions can be determined
SUMMARY The goal meets the requirements of SMART
GOAL 5: SAVE FOR COLLEGE FOR KIDS
SPECIFIC Client to set aside some amount monthly for the purpose
MEASURABLE The amount saved is measurable in dollars
ACHIEVABLE The client is determined
REALISTIC Children are yet to be bone but the earlier the savings are made, the better
TIME When it can be done can be determined by the client
SUMMARY The goal is also SMART
GOAL 6: SAVING FOR RETIREMENT
SPECIFIC The client to set aside some amount every month for the purpose
MEASURABLE The amount saved can be measured in dollars
ACHIEVABLE The budget can accommodate the amounts
REALISTIC Saving for retirement is wise
TIME Possible to set time when it will be done
SUMMARY Saving for retirement meets all SMART requirements