Set SMART goals to improve financial stability

Plan and save to enhance your finances

Sibongile Mashaba Deputy News Editor
September marks the start of my Christmas shopping.
September marks the start of my Christmas shopping.
Image: Sibongile mashaba

Having a big family means I must have a financial plan for any eventuality.

It also means having strong financial management skills, which include knowing what to buy, where and when.

September marks the start of my Christmas shopping. Someone may think it’s probably too early but I have reasons for spreading out my Christmas shopping.

Firstly, I don’t like putting myself under pressure – I have better things to do with my time. Secondly, because I have a big family (three households) that I do stuff for, spreading out how I do my shopping is important.

Thirdly, stockpiling has changed my life and knowing I won’t need to buy some items for months brings me so much relief and importantly, leaves me with more money in.

Another reason is I’ve realised that some of the sales we see is December are not real sales. Lastly, saving is the ultimate goal no matter what.

If you follow sales throughout the year, you will realise that if you had bought some of the things probably in July, you would have saved a lot more. Some December sales are not sales at all. In some instances, you’re paying more than you should for some items.

So, how does starting my shopping in September help me save?

When you’re not under pressure, you make sound decisions. When you buy some stuff early, you can focus on getting the rest the next month.

If, like me, you like spoiling your loved ones with gifts, shopping when you still have time gives you the freedom to buy exactly what you desire for them to have.

For example, if you are buying four gifts with a total cost of R2,500, if you buy two in one month, you will only need R1,500 to get the others. If you spend R800 on one more, you can't get the last gift the next month.

You have still spend R2,500 to get the gifts over a couple of months. Isn’t that better that spending R2,500 at one go? It is, trust me. It shows that you have control over your finances and saves you from using money you don’t have at one go. We all know how short December is and how, self-imposed, January is the longest month of the year.

If you plan your spending and save, you’ll realise that January is just a normal month.

Jean Rossouw, head of CSI and financial education at Capitec, urges that you look beyond viral financial “quick fixes” and embrace a Specific, Measurable, Achievable, Relevant and Time-bound (SMART) approach to managing your finances.   

This approach, she says, can help you build long-term financial stability.

"In a world where financial information often goes viral for the wrong reasons, we're advocating for a return to smart, strategic thinking about money. While viral social media trends like “girl math” might make for entertaining social media content, SMART goals make cents for Mzansi. 

"While these trends can be entertaining and amass millions of views, they don't provide a realistic strategy for financial stability.”

Having a big family means I must have a financial plan for any eventuality.
Having a big family means I must have a financial plan for any eventuality.
Image: 123RF

Rossouw says SMART goals offer a practical and effective alternative to trendy financial shortcuts.

“By breaking down larger financial aspirations into SMART goals, individuals can create a clear roadmap for their financial future. Think of SMART goals as your financial GPS. They guide you to success with clear, actionable steps that align with your long-term aspirations." 

Here are tips on how SMART goals can be applied to enhance one’s financial wellness: 

Be specific: Instead of vague goals like "save more money", aim for concrete objectives such as "save R10,000 for studies by August 2025". 

Make it measurable: Break down your goal into trackable milestones. This could mean saving R800 each month. 

Keep it achievable: Ensure your goals are realistic, considering your current financial situation. If saving this amount feels too ambitious, start with a lower amount and gradually increase it. 

Ensure relevance: Align your financial goals with your broader life plans and values. Whether saving for education, starting a business, or building an emergency fund, your goals should align with your aspirations. 

Set a timeline: Establish specific deadlines for your goals to maintain focus and motivation. This could involve weekly, monthly or quarterly targets. 

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