Setting S.M.A.R.T goals are one way to personally monitor and gauge goal attainment. Alice is trying to accomplish five goals that are contingent on having a steady stream of income all the while eliminating debt and increasing assets. Each goal seems to be long term in nature and can only be realistically set once she has been gainfully employed. Consider she has the career she wants and makes enough income to start planning where she will live and what type of lifestyle she will enjoy.
Putting her goals in order from most relevant to least paying off her student loans seems more attainable however is a long term goal.
S. specific
a. paying off student loan
Alice may have more than one type of debt however specifically targeting her student loans will help her be credit worthy when it comes time to shop for a house. Eliminating that kind of debt will free up extra income that she could save for her children’s education and a down payment. Depending on the amount of her loans she can plan based on the current interest rates or devise a plan to make payments that will prevent interest accrual.
M Measurable
b. buy a house and save for children’s education
Where Alice is now, in debt, compared to where she wants to be, a home owner, will take more time and planning. She will have to think about where she wants to
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Whether she has one, two or three children paying for collegiate level education can cost hundreds of thousands of dollars over time. She has already experienced what it will be like to pay off her own student loans so now she can apply the same strategy to saving money by investing and using interest rates to her advantage. Accumulating assets may not be as immediate a goal as eliminating her student loan debt however once she completes that part of the plan she can buy into stocks or bonds or savings accounts that will mature over