Managing the personal finance is a lot of work. But this is the kind of job that everyone, irrespective of their income and expenses, should spend time on. Personal finance can easily be handled with the help of financial advisors- there are even bot advisors these days. Talking about bots there are bots even for the traders. This is a relevant addition to the market as more and more people now consider trading as an important part of their investment strategy. When you choose a bot or a trading tool online this trading software would carry out the trades with the level of automation you set. The same applies to the use of bots for management of your personal finance portfolio as well. Full automation and partial automation are both possible. But you should have the right strategy to ensure that you are making the best use of your hard earned money.
SMART goals are Specific, Measurable, Achievable, Realistic, Time limited goals. These attributes are perfect to add to your personal financial objectives.
Specific – this is about being particular about what you need from your finance portfolio. Get to the details about your objectives and have a clear understanding of why you set each goal. You should be able to answer all the ‘what’ ‘where’ and ‘why’ questions about each investment and each personal finance goal you set.
Measurable – goals which cannot be measured can get a little complicated to handle. You should be able to easily monitor the progress of your plan. This would help you understand where you are and how far the goal is from your position.
Achievable – goals do not always have to be very ambitious. Achievable small goals can easily add up and help you reach your destination. Do not set too many strict rules for your finances which might later be difficult to follow. Set small goals that are easy to achieve and these would motivate you to follow your plan.
Realistic – every personal finance goal being set would be influenced by the market conditions and other external factors. So do not frame your objectives and plans based on ideal conditions alone. Set realistic goals taking the imminent risks into account.
Time-limited – goals without timelines might prove to be futile. Again the timelines too would have to be practical. Have a grace period that could be afforded in this case. What should you do if you are not able to meet the goal within the set timeline? Having clear and realistic targets would be a great thing to give you that gentle push to strictly follow and analyze your personal finances.