1. Making SMART Decisions

2. Decision Making
Careful decisions and wise use of resources can help you achieve your financial goals
Reviewing the success or failure of past decisions helps you make better decisions

3. Management
The process of organizing and using resources to achieve predetermined objectives
Identify resources
Setting goals
Making decisions
Solving problems
Evaluating results
Good management skills can help you achieve all the goals you set for yourself

4. Sense of Direction
Some people always seem to know what they want and where they are going
They seem to know what is important and what is not worth serious attention
This sense of direction and purpose is often a key factor in separating people who achieve what they want from those who do not

5. Sense of Direction
Developing this sense of direction and purpose requires a clear understanding of personal needs, wants, values, goals and standards

6. Needs and Wants
Needs-items you need to survive: food, clothing, shelter
Psychological needs-feelings of safety, security, love, acceptance, approval and success
Wants-Items you would like to have; not essential for life

7. Values Personal beliefs about what is important and desirable
Influence the way you live and think, your decisions, actions and behavior
Values differ among people
Values govern and direct your life, even if you are unaware of them

8. Values
Identifying your values will give you a sense of control

9. Values Some important values for many people are: A loving family
Loyal friends
Good health
A meaningful career
Financial security
Inner peace

10. Values List
Some people need to make a list of everything that is important to them
As you meet new people and have new experiences, what is important to you may change
As life unfolds, values will also change
Some values become more important and others less so

11. Value System
Guides your behavior and provides a sense of direction in your life
As you continually make different decisions, eventually a value system is created

12. Value Example
If you value doing well in school, you will participate in class, complete your homework and prepare for exams
If loyalty to friends is high in your system, you will help your friends when they need you
If popularity ranks higher than loyalty, you may find it difficult to stand by an unpopular person or cause

13. Ethics A moral principle or belief that directs a person’s actions
Ethics often conform to accepted standards of right and wrong

14. Ethical behavior Honesty Fairness Reliability Respect Courage
Tolerance
Civility
Compassion

15. Ethical Behavior
Expected from businesses, government and indivduals

16. Unethical Behavior
Usually considered wrong
Sometimes illegal

17. Unethical Behavior Taking office supplies from your work
Surfing the Internet on company time
Returning used merchandise to a store

18. GOALS An objective you want to obtain
Usually closely related to values

19. Example
If education is one of your values, preparing for college might be one of your goals
This goal might motivate you to begin a savings program to pay for advancing your education

20. Goals
You can set goals for almost anything in life

21. “To Be” Goals Related to personality and character
Includes career choices

22. “To Do” Goals
Cover the endless list of things you might want to accomplish
Examples:
Learn to play the piano
Make the basketball team
Go to college
Travel
Organize your life

23. “To Have” Goals Easy to identify and continually change
Include the endless list of routine purchases such as socks and toothpaste
Also include higher priced items for which you need to plan and save
Examples:
A new watch
A car
Concert tickets

24. Evaluating Goals
No one has enough resources to reach all of his or her goals at one time
You can get the most from your resources by planning how and when to use them
You will be able to control your life better

25. Identifying Goals Rank in order of importance
You can direct our time, energy and money to the goals that are most important to you

26. SMART Goals S=Specific “Getting rich” isn’t a goal
For a goal to work it has to be specific
You need to have a number and work towards that number

27. SMART Goals M=Measureable
Once you have a specific goal, you need to be able to measure your progress

28. SMART Goals A=Attainable
I’d love to write and publish a book. Doing so is on my “bucket list“. I can easily fantasize what it will be like to hold my own finished book in my hands, and display it proudly on my bookshelf. Even better if it hits the bestseller list! I’ll go on Oprah! I’ll get a six-book deal! I’ll be the next J.K Rowling! That’s not a goal; it’s a daydream.

29. SMART Goals R=Realistic
Goals need to be realistic and related to your real life
I’d love to walk on the moon someday, but doing so isn’t a goal of mine. It’s totally unrealistic. If you want to make radical changes to your life, that’s fine. Goals can help you do that. But they need to start with small, specific, attainable steps.

30. SMART Goals T=Time Bound Your goals need to have a time frame
When you set a goal, give yourself a concrete time frame in which to accomplish the goal

31. Saying, “I want to save $5,000 for a trip to Argentina over the next 18 months” is a much more attainable goal than saying, “I want to save for a family vacation.” I know exactly how much I need to save, and how much time I need to do it in. Figuring out how much to save each week becomes a simple math problem, and I can easily check my progress as I go along.

32. Short Term Goals
Goals that you want to achieve within the next 3 months

33. Medium-Term Goals
Goals that you want to achieve within 3 months to a year

34. Long-Term Goals
Goals that take you more than 1 year to achieve