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Article Title:
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Setting SMART Financial Goals

Article Description:
====================

Managing your money wisely is the best way to make sure you and
your family gain financial security.  Money management is also
extremely important if you own a business.


Additional Article Information:
===============================

503 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-07-26 12:48:00

Written By:     Josh Pike
Copyright:      2006
Contact Email:  mailto:[EMAIL PROTECTED]



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Setting SMART Financial Goals
Copyright © 2006 Accion USA
Written by: Josh Pike
Accion USA
http://www.accionusa.org/



Managing your money wisely is the best way to make sure you and
your family gain financial security.  Money management is also
extremely important if you own a business.  All business owners
need to understand how money comes in and goes out of their
business-if you ignore budgeting details, your venture might not
be successful.  There are many similarities between budgeting for
yourself and budgeting for your small business.  When you
understand the basics of money management for yourself, you will
be more prepared to set up a budget for your company.

To manage your money wisely, start by setting financial goals and
establishing a budget plan to help you achieve those goals. 
Financial goals are simply statements about things you wish you
could afford; for example, you may have a goal to establish an
emergency savings fund of $2,000 by the end of the year. 

What are your personal financial goals?  If you had $2,000, what
would you do with it?  Would you invest it in your small
business?   Would you buy a car?  Would you make a home
improvement?

You will be able to accomplish your goals if you manage your
finances and put money aside on a regular basis.  The key is to
setting financial goals that are Specific, Measurable,
Attainable, Realistic, and Trackable (SMART):

 * Specific. State exactly what you want to achieve, how you're
going to do it, and when you want to achieve it. For example:

General Goal Statement:   I want to improve my finances.
Specific Goal Statement:   I want to pay off my credit card bill
in 8 months by negotiating a payment plan with my creditor.

 * Measurable.   A financial goal should be measurable so you
know when you have achieved it.

General Financial Goal Statement:   I will pay off most of my
credit card debt soon.
Measurable Goal Statement:   In the next six months, I will pay
three of my five credit card bills in full.

 * Attainable. Make sure the financial goal is within reasonable
reach.

General Goal Statement:   I will save money.
Attainable Goal Statement: I will save $1,000 in a year by
putting aside $3 each day.

 * Realistic. Is the economic goal realistic for you? Don't
ignore your limitations. Your economic goals need to be tasks
that you can reasonably accomplish. 

General Goal Statement:   By managing my money well, next year I
will become a millionaire. 
Realistic Goal Statement:   By managing my money well, next year
I will be debt free and will have an emergency fund equal to
three months of living expenses.

 * Trackable. Being able to track your progress encourages you to
keep going and reach your fiscal goal.

General Fiscal Goal Statement:   I will increase my savings goal
every year.
Trackable Statement:   Each year I will save 10 percent more
money than the previous year.


If you are SMART about setting financial goals, you will be well
on your way to managing your money in a way that will provide
financial security for you and your family for years to come.





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Article written by: Josh Pike. For more helpful tips about 
managing your money and to improve your financial literacy, 
visit Your Money and You (http://yourmoney.accion.org).

This article was provided by ACCION USA: http://www.accionusa.org
ACCION USA provides business loans up to $25,000 to small 
business owners who need financing to expand their businesses.


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