It’s Hard to Hit a Target That You Cannot See (Episode 14)

Updated: December 8, 2021

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Summary of Episode 14:

As a financial planner, it’s important for me to know your financial goals before I can confidently give you advice on what you should do with your money. (3:17)

Mentioned study: The origins of the S.M.A.R.T. Criteria

The definition of having S.M.A.R.T.E.R. goals. (5:54)

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time-Bound
  • Exciting
  • Recorded

Mentioned podcast episode: It’s Hard to Improve What You Don’t Measure.

Mentioned blog article: List of Websites That Offer FREE Online Courses

The reason why your goal should be measurable is because you need to measure and record your progress. This way, you can see if you’re on the right track or if you need to adjust your plans, in order to achieve your goal. (11:42)

If you don’t have financial goals, you are at risk of spending your money unnecessarily. (12:45)

Your financial goal is what will dictate where you should invest your money. (14:01)

The matching principle states the best way to minimize financial risk is to match the time period of an asset or investment, to the time period of your financial goal. (14:20)

By basic definition, the matching principle means you should invest in low-risk investments for short-term goals; moderate-risk investments for medium-term goals; and high-risk investments for long-term goals. (17:00)

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