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Financial Goals
Definition
Financial goals are specific targets for saving, spending, investing, or debt reduction that guide financial decisions and measure progress.
Explanation
Effective financial goals follow the SMART framework: Specific, Measurable, Achievable, Relevant, and Time-bound. Short-term goals (under 1 year), medium-term (1-5 years), and long-term (5+ years) create a complete financial plan.
Writing down goals increases commitment. Review progress regularly and adjust as circumstances change.
Example
SMART goal: Save $12,000 for a home down payment in 24 months by saving $500 per month in a dedicated high-yield savings account.