Hello friends,

It's almost the last quarter of the year. Now is good a time as ever to reflect on how we can finish the year strong. As I'm writing this, I'm sitting with less money in the bank than what I had a few months ago. I've had a pretty big financial year:

1. Moved twice across the country
2. Purchased a home
3. Mom retired and now I take care of both my parents too
4. Helped my parents to complete remodeling/renovating their 1950s house

These things cost money.

Now, student loan repayments are starting up again (don't even remind me how totally unsurprising this turned out to be). I had such high hopes earlier this year, but I always knew there was a big chance the legislation wouldn't pass. (Just didn't want to speak it into reality.) Furthermore, I knew that if it didn't go through the Supreme Court, that President Biden wouldn't push back on it or try alternative options to forgive student loans.

Because of this, it's time to re-visit this topic and make changes as needed. How will I do this?

Why, with SMART goals!

What is it

In case you've never heard of a SMART goal before, it stands for:

1. Specific
2. Measurable
3. Achievable
4. Relevant
5. Timely

Getting started with SMART

These are the main questions I ask myself when I want to get SMART.

Specific: What exactly do you want to achieve?

1. Why do I want to achieve this?
2. What is required for me to achieve?

Measurable: Attach a number to it! This will help you to track your progress and know when you've reached your goal.

1. How will I measure progress or success?
2. What are the metrics I'm looking at?
3. What is the target or desired outcome in numerical terms?
4. How often will I assess my progress?

Achievable: Is it realistic and feasible?

1. What are the potential obstacles or challenges, and how can I overcome them?

Relevant: Does it relate to other parts of your life? Will it fit with your long-term goals?

1. Why is this goal worth pursuing at this time?
2. How will achieving this goal contribute to my personal or professional growth?
3. Is this goal relevant to my current situation?

Timely: What is the timeframe?

1. What is the deadline for achieving this goal?
2. What steps must I take each week, quarter, etc. to achieve the goal?

Applying it towards money

Here is how I'm using the framework to help me meet my financial goals over the foreseeable future.

1. Specific - Being clear about the goal...
   • Mine is about paying off my student loans so that I can once again refocus on replenishing my savings.
2. Measurable - I've paid a decent amount of my loans back. However, I still accumulated about 25K in student loans for graduate school.
   • Now, I owe $31,617.45 before repayment starts and interest hits again.
3. Achievable - I'm incredibly thankful because if my income doesn't change, I should be able to make my student loan payments just fine. Now, I don't have 32K just sitting in the bank to throw at my loans, but I plan on breaking the total into smaller steps.
   • If I apply $550 a month, I should be able to pay it off in 5 years.
4. Relevant - Long term, being free of student loans would allow me to focus those funds elsewhere, including replenish my savings faster and helping me prepare for retirement.
5. Time-bound - My goal is to have my student loans paid off in 5 years!

Putting it all together: My goal is to pay off my student loans in five years to allow me to invest that money in other areas. I will do this by paying $500 towards my balance each month.

Bonus thought: Not a part of the "SMART" method, but it's just as important. The key with any type of goal-setting is to recognize the progress. I think the best thing you can do for yourself is to give yourself some wiggle room to have an off-month if it's truly needed. For example, if you have a surprise bill that derails your plan to pay $500, and you pay $300 - that's okay too. You're still making gains. Of course, the goal is to return to the plan you created, but it is utterly useless to get down on yourself because you paid a little less one month. You catch my drift? This little act of self-care will take us further - trust me. 🙂

Other considerations

Like I previously mentioned, my financial circumstances changed a lot recently. Due to this, I would be slightly foolish to rule off the fact that it could change again.

Afterall, my work involves helping companies to onboard and offboard workers in this country and other countries. I've seen many companies be in hypergrowth and hire like crazy. I've also (unfortunately) seen many RIFs (reductions in force). While they are both stressful, I find that termination is especially sensitive. Afterall, it's never fun to lose your job. It's also especially frustrating when it's nothing that you did in particular, but rather, a downsizing, etc. I empathize a lot with workers going through these hard transitions.

Consider your other responsibilities

It is one of my biggest priorities to ensure the safety and stability for myself and my family (including my pup, Penny)!

Aside from paying off my student loans, I want to make sure that I plan for an emergency savings, invest in my retirement, be able to pay my mortgage, and put food on the table. With careful money management and a budget, I can do just that!

This is to say that no matter what your goal, please make sure you're meeting your basic needs first and foremost. And remember: if you work a job that pays commission, never ever budget around the OTE. Base your budget on your basic salary because variables are not guaranteed.