When setting financial goals, they should be?

Financial goals should be specific, measurable, action-oriented, realistic, and time-based to ensure clarity and facilitate effective planning. When goals have these attributes, individuals are better equipped to outline actionable steps to achieve them and measure their progress along the way.

Having specific goals means that they are well-defined and can be clearly understood. Measurable goals allow individuals to track their progress, providing a way to quantify achievements and make adjustments as necessary. Being action-oriented encourages individuals to focus on the steps necessary to achieve the goals. Realistic goals ensure that the targets set are attainable and aligned with one's current resources and constraints. Time-based goals introduce a sense of urgency and help in setting deadlines that can motivate individuals to take consistent actions toward reaching their goals.

Vague, broad, or loosely defined goals lack clarity and make it difficult for individuals to know what steps they need to take, leading to confusion and diminished motivation. Goals that are too flexible may not compel individuals to take action, as they can easily shift without solid commitment. Thus, the well-structured framework of specific, measurable, action-oriented, realistic, and time-based goals acts as a roadmap for financial success.