Being Smart about your Wealth Creation Needs:
SMART - stands for Specific, Measurable, Action Based, Realistic and Time Bound.
Wealth means different things to different people. For some Wealth means a lot of gold, for few it’s their dream house, for some it could be a lot of real estate and for many it could just be some liquid cash.
In many cases however, we aspire for more than one of the above leading to confusion which hinder us from reaching our goals. That is when the SMART approach will help us.
Be Specific: First decide what is that you want to achieve. Instead of saying you want to be rich, define what rich means to you. Is it a car, a house etc
Measurable: Make it measurable. Once you have decided it’s a house, quantify a house. It’s a 2 BHK in Malad, Mumbai @ 1.25 Crs or a 3 BHK in Banaswadi Bangalore 80 Lacs, 50 Lacs Liquid Cash, and 5 Lakhs worth of Gold etc
Action Based: Once you have a quantified goal make it action based. All goals are mere wishes unless they are acted upon. The best way to act on it is to start saving for it today.
Realistic: Keep the goal realistic. If I am earning say 8 Lacs every year, it would be unrealistic to dream of buying a 5 Crs worth farm land in Chatharpur, Delhi despite the goal being specific, measurable and action based.
Time Bound: Not but not the least, make it time bound. Have a specific, realistic time frame by when you would like to achieve the goal.
For more on how to plan your finances, get in touch with our Wealth Experts or click on the calculator to know what it takes to achieve your SMART goals.