Financial management requires a correct attitude, action and goals. According to a survey conducted by Harvard University in 1979 on MBA business students, 84% of them did not have a clear goal, 13% had a clear goal, but did not write it down. The rest of them have clear goals and write down execution plans in detail. 

That 13% of the students who had clear goals but didn't write them down had an average job income twice as high as 84% ​​of those who didn't have clear goals and didn't write them down. Meanwhile, that group of 3% of students who have clear goals and write down their implementation plans in detail have an average job income ten times higher than those who have no clear goals or write them down!

Hence, it is needed to have a goal when we are planning for our wealth. A goal is an event or achievement that you want to achieve at a certain point in time. The SMART goal setting method can help you to make your goals more efficient and detailed. The clearer the goal, the easier it will be to help you achieve your dream. Every letter in the "SMART" represents different meanings.

S = "Specific"

The goal needs to be clear. You must clearly define the details of the goals such as people, things, time, place, and things. The sentence, "I want to make money." is very ambiguous. You can set a clearer goal such as "I have to deposit RM10,000 in my bank account by the end of the year 2021." 

M = "Measurable" 

Goals must be quantified. The quantification does not necessarily have a unit, but there must be a number. For example, to increase the performance by 30% within half a year, or to increase the market share of the company’s products by 50% by next year. 

A = "Achievable" 

If the goals set are too far out of reach, you will be soon demotivated, and you will simply give up in the end. When you set goals, don't be too harsh on yourself. The point is to have an achievable goal so that you would have the motivation to make daily efforts.  

R = "Relevant"

Goals need to be realistic. Suppose you hope that your income will increase by 25%, you need to think of ways to realize it. You need to access or check your current economic situation. To increase your current income, you can get part-time jobs, changing jobs, start investing, and so on. Even if the goal for two different persons is the same, their situations are different; hence, their goal settings will be different.

5. T = "Time-Bound"

You need to have a timetable in the process of achieving your goals. For example, if you want to save RM100,000 in three years, you need to decide how much money you need to deposit in one year or one month. As long as you follow the planned timetable and check it from time to time, you will eventually achieve your goal.

In the process of setting goals and putting them into action, setbacks or resistance are likely to occur. These are normal. When you are setting goals, if you think of any expected setbacks, just drop by. Write it down and take the time to think about the solution.