A 'SMART' financial goal includes which of the following attributes?

The attributes of a 'SMART' financial goal are designed to ensure that the goal is well-defined and attainable within a specific timeframe. The correct choice outlines the essential components that make a financial goal effective.

Firstly, 'Specific' means that the goal should be clear and precise, providing a clear direction. For example, instead of aiming to "save money," a specific goal would state, "save $5,000 for a down payment on a house."

Next, 'Measurable' indicates that the goal should have specific criteria to track progress. In this context, being able to quantify the amount you want to save or the percentage by which you want to reduce expenses is crucial.

'Action-oriented' refers to the need for a goal to be accompanied by actionable steps that can be taken to achieve it. This element emphasizes that mere aspirations won’t lead to results unless there are defined actions to execute.

The term 'Realistic' implies that the goal must be achievable considering available resources, time, and constraints. Setting an unrealistic financial goal can lead to frustration and demotivation.

Finally, 'Time-based' means that there should be a deadline for achieving the goal. Setting a time limit creates urgency and helps maintain focus on the objective