M is for Measurable - Money Clouds & SMART Goals pt. 3
Just as you must know exactly what it is you are saving toward, you must have a way to benchmark your progress towards reaching your goals. When talking about financial goals, measurable is almost always a given since it’s easy to count up how much you have saved and how much further you have to go.
The problem for most of us (and by “us” I mean millennials) is that we don’t measure our progress along the way, and oftentimes don’t even have an end amount in mind when it comes to saving our money.
Say you are trying to build an emergency fund. Rather than stating “I want to have enough money in case of emergency” you should set a dollar goal, perhaps something like “I want to save $1,000 to pay for essentials in case an emergency strikes.” This allows you to easily measure your savings progress towards your goal.
The nice thing about using a savings app like Money Clouds is that the progress is automatically measured for you, eliminating the need for clunky spreadsheets or memory-based tracking.
This is why goal-based saving works well for so many people. Knowing you have an end-point and knowing exactly how close you are to reaching that point makes saving money almost like a game. And for most of us, playing games is a heck of a lot more exciting than simply saving money.