Q1. What are financial goals?
Targets for managing money, like saving for a home, retirement, or debt repayment.
Q2. Why must goals be specific?
Vague goals like “save money” lack direction. Specific goals drive action.
Q3. What is the SMART method in finance?
SMART = Specific, Measurable, Achievable, Relevant, Time-bound. It ensures realistic planning.
Q4. How do short-term goals differ from long-term goals?
Short-term goals (1–2 years) cover emergencies or vacations; long-term goals cover retirement or home buying.
Q5. Why should goals be broken into milestones?
Smaller steps prevent overwhelm and make progress trackable.
Q6. How can automation help in achieving goals?
Auto-transfers to savings/investments remove the temptation to skip contributions.
Q7. How often should financial goals be reviewed?
At least once a year, or when life circumstances change.
Q8. What role does budgeting play in financial goals?
Budgeting allocates resources, ensuring money is available for goals.
Q9. Why is discipline critical for financial goals?
Consistency, not one-time action, drives success in long-term planning.
Q10. How do achievable goals improve financial confidence?
Meeting goals step-by-step builds motivation and financial security.