Whether it’s fitness or finance, the new year ushers in opportunity and excitement to start anew and form new habits.

While we all start the year fired up to make changes, we often lose that excitement halfway through January, just like how the crowd at the gym on January 2^nd looks a lot different than the crowd on February 2^nd.

In last year’s January Headlines and Fine Print episode, PACU President & CEO Dion Williams discussed how any day can be “Day One” for implementing a change, and how not to be discouraged if you slip up.

But how do you channel that energy into a plan? By being SMART.

The SMART approach to goal setting was introduced by George Doran in 1981 and has since become a standard tool in both professional and personal development.

S            Specific               Create goals that are clear and well-defined.

M           Measurable       Track your goals with concrete criteria.

A            Achievable         Ensure your goals are within your power to reach.

R            Realistic              Align your goals with your broader priorities and be practical.

T            Time-bound      Create and follow a deadline to hold yourself accountable.

Maybe you’ve been saving for retirement for years, or you haven’t even started yet, but you plan to retire in 10 years.

The “S”

While the goal is specific and well-defined, it has one caveat: how much money is enough to retire in 10 years?

You may have an employer-sponsored retirement plan that offers online tools to help you project what is needed. If not, there are online tools and financial planning professionals who can assist you with that calculation.

Retiring is a great goal to work toward; however, be sure to attach a specific dollar amount so you know when you’ve achieved it.

The “M”

Tracking your progress toward reaching your goal is not only a fantastic motivator, but it’s also a measuring stick for how far you’ve come and how much further you have to go.

While trying to reach your goal, consider setting aside some or all of a pay raise to increase your savings, contribute enough to qualify for the maximum employer match or pay off a debt. These are all great benchmarks to check that you are on track to achieve your goal.

The “A”

As you work toward your goal of retiring in 10 years and examine the dollar amount needed to reach this goal, you may find that 10 years may not be achievable.

Don’t panic! While this might feel discouraging and make you want to give up, try recalibrating your approach instead.

If 10 years isn’t possible, is 12? Will there be opportunities available in the next two or three years that will allow you to catch up and get back on track?

Give yourself some grace and be willing to adapt, because when it comes to retirement, taking action is better than doing nothing.

The “R”

While “Realistic” and “Achievable” may seem similar, there is a distinct difference between the two. Achievable is more about the possibility of reaching the goal, whereas Realistic explores whether the goal makes sense.

Dion uses himself as an example here. With three daughters in college, putting all of his eggs into retiring right now might not make the most sense, especially with current expenses and potential future expenses such as weddings, which would be covered.

The focus on retirement doesn’t have to stop. Perhaps you need to take a moment to see how competing demands on resources, such as home improvement or paying off debts, unfold. It’s a balancing act with no right or wrong answer.

Consider and balance competing wants and needs with the available resources to ensure you set realistic goals within realistic timelines.

The “T”

Whether it’s 10 years or more, having a timeframe is essential. Humans function better when we have time-bound deadlines. It creates urgency and accountability. It brings goals more into focus.

Retiring in 10 years is a more steadfast goal than the general goal of wanting to retire at some point in the future. The timeframe encourages action on the steps needed to achieve the goal.

Putting SMART Goals into Action

Remember that it doesn’t have to be the start of a new year to start planning and working towards achieving your goals.

And Piedmont Advantage is here for you every step of the way, whether you want to sit down with one of our financial counselors to discuss your financial goals or are ready to open a savings account that brings you one step closer to financial success.

Want to learn more about the headlines and fine print of other financial tips and topics? Check out past episodes of Headlines and Fine Print on Spotify and YouTube.