How to Set SMART Goals? | CA Rachana Ranade - YouTube

Hey folks!!! CA Rachana Ranade here and I welcome  you all to a brand new video which is about  

Dreams, Aspirations and Financial Goals. Well  everyone has dreams someone would want to  

retire early, retire rich, someone would want  a good house which is like sea facing house,  

someone would want to become a very famous  teacher in India or maybe in the globe  

but then always remember this dreams are no one's  monopoly it's all about execution how do you  

execute them how do you visualize them so for that  you have to set goals which are smart goals but  

then what do we mean by smart goals is exactly  what we are going to discuss in today's video. 

S stands for Specific. M measurable, A achievable,  R relevant and T time bound these are smart goals. 

Now let's understand the exact  meaning of SMART with the help of  

three examples. The three examples  that I am going to give are properly  

distinguished the first example is  a complete non-financial example,  

second example is a financial example which I feel  is applicable for everyone and the last financial  

example might be applicable to few of you all  okay. So let's understand what do we mean by  

specific goal setting? so specific means what you  have to be as clear as precise whenever you want  

to decide that yes I want to achieve this thing be  very specific be very clear okay. So first example  

that is what that is a financial or non-financial?  Obviously that is a non-financial example.  

Is it specific? Yes. Why? Number one let's  understand what do I mean by a specific goal  

number one you have to very clearly mention what  do you want so do you know what you want? Yes but  

second point which comes here is which steps will  you take to accomplish that. Now does Shaharukh  

Khan tell what steps he will come will he take  to accomplish that chand tare? No, so now the  

conclusion is that first one is not a specific  goal right let's change the second goal which  

is applicable for everyone is to be financially  independent so is the answer what do you want to  

achieve is? Answered Yes. I want to be financially  independent, second thing that you have to ask is  

which steps will I take to become financially  independent? Now for that I can say that I will  

do a monthly SIP so which steps will be taken  that is also answered so I can say that the  

second example is a specific goal, third example  assume that my example is I want to buy a car okay  

Honda Civic LX Variant car okay and to buy that I  am going to again do a monthly SIP so again what  

and which steps are both answered Yes so I hope  specific in all three cases is absolutely clear. 

Now the second one is that it should be a  measurable goal now what do we mean by measurable?  

I should be in a position to answer the question  how much I had read it somewhere that if it can  

not be measured it can not be improved  so you have to get an answer to how much  

so let's check in all these three scenarios  whether these goals are measurable or not?  

First let's start with Shahrukh Khan's goal  sari duniya me chaunm now it can be different  

what is the interpretation of dunya for a  few people sari dunya can be their friends,  

for a few people sari duniya can be their fb  followers, for for few people sari dunya can  

be their two million followers maybe, okay so how  much is sari dunya that how much is not answered  

in this one so the first is not a measurable goal.  In the second case if you remember I told you  

in the previous case that I am going to start an  SIP okay but SIP of how much? I did not mention  

in the previous case so if I say that I am  going to start an sip of 20,000 rupees per  

month so that I will be financially independent  is that a measurable goal now? Yes okay because 

20,000 rupees is a measurable thing right and  to buy that Honda Civic car now either I can  

again mention the sip amount or I can say that  the current car cost is around 19,00,000 rupees  

and if I consider inflation then let's say after  five years the cost of the car will be 25,00,000  

rupees. I want to save that much money 25,00,000  rupees is that measurable? Answer is Yes. 

Now the third one is whether the goal is an  achievable goal or not? So to check whether it  

is an achievable goal or not ask few questions  to yourself number one do I have the necessary  

skill sets knowledge or money to achieve that  goal? number two if I don't have that skill  

set knowledge or money can I acquire that? and  number three can I dedicate my time and efforts  

to acquire that skill? right so first let's  start again with our Shahrukh Khan example  

Chand Tare tod lao it is not an achievable  goal at all so cross complete cross right.  

Second one is becoming financially independent  but then a person says I want to become financial  

independent agreed but I am not a financially  literate person then what does that person have  

proper knowledge proper skills no question can  he achieve that? Yes how ?By watching my lectures  

right every day that person is going to watch one  lecture of Basics of stock market then Fundamental  

Analysis then Technical Analysis and that  person is going to be financially independent,  

financially literate okay once after becoming  financial literate see one one more important  

point was that person ready to take that much  dedicated efforts or not if yes then it is  

possible okay so it's a journey from becoming  financially literate to becoming financially  

independent right so second one is achievable.  Third one for that no skill set is required as  

such but you require money so assume that a person  says that on an average monthly I am able to save 

30,000 rupees so on an annual basis roughly around  3.6 lakhs I will be able to save so let's say in  

a time frame of five years will that person be  able to achieve his dream car? Answer is Yesss.  

So I hope you have understood what do we mean  by achievable goals but then what's the problem?  

Problem is that we tend to over estimate ourselves  we believe that I can buy a house, I can buy  

a car, I can go on an exotic vacation all at one  point of time but then this can be a bad financial  

planning if you are not setting achievable and  realistic targets what is the solution? There  

for that I just came across INDmoney app in this  app what happens is that you can set personalized  

goals and you can also easily track each and every  goal what you have to do is just download the app  

enter all your investments enter all your incomes  and monthly expenses then go to plan your goal and  

that's where you can add as many goals as you want  once you select your goal you can also check out  

the inflation adjusted amount of the goal and if  you need a loan the app will also calculate your  

EMI and adjust your future incomes and expenses  accordingly, after that what you can check is  

whether this goal is achievable or not? whether  you can afford that or not? and you if not you  

can also modify the goal and make it achievable  by changing the amount or changing the year. 

The next one is that it should be a relevant  goal. Now what do you mean by a relevant goal?  

First of all you have to ask yourself that  why do you want to accomplish it is there  

any reason behind it or not? You have to check  whether it is in line with your overall life  

goals with your overall life values or not if  your answer is yes to these questions then I  

can say that it is a relevant goal again back to  our three examples now when Shahrukh Khan says  

for whom so if it is this scenario then  okay he wants to impress his heroine okay  

but if Shahrukh khan is Devadas  now whom is he going to impress  

so at that point of time all these Chand Tare  and everything become absolutely irrelevant  

no sense okay so again the first  one is absolutely irrelevant,  

second one is about being financially independent  okay now is that is that a very much relevant goal  

yes a person can say that uh I want to take care  of my buddha Mabap bin byahi bahan and all that  

3 Idiots okay so uh there can be a proper relevant  goal for that I want to be financially independent  

because I should be able to take care of myself,  my parents, my children, that is relevant. You  

should be able to answer why and here you did find  out why that's why it is a relevant goal. If I am  

talking about the Honda Civic now a person may  say that I want to buy a Honda Civic LX because  

number one I have four people in my family and  number two I want to upgrade my lifestyle that  

is the reason why I want to buy it so have you  gotten your answers to why yes and that is why I  

can say it's a relevant goal okay very important  this video is not sponsored by Honda Civic  

and the last one is a time bound goal  comparatively a simple one because the  

word itself says it should be time bound so  which question is going to be answered when  

will I achieve it that question is going to be  answered so for example you can have a time bound  

uh timeline of let's say six months it you could  have it for six years or whatever as per your goal  

so again let's start with our Shahrukh Khan's  example when he says that my banjo.........okay  

so in this case he doesn't say when does he  want to become popular so again a big cross  

for Shahrukh Khan so sorry Shahrukh Khan I have  not given you tick mark for even one parameter  

but do not worry I am a die-hard fan of  yours okay anyways let's move on with the  

second one which is about being financially  independent now if I say that I want to be  

financially independent at the age of 45 is  that a time-bound goal? Yes okay and the last  

one is about that Honda Civic car can I say  that I want to buy this car after five years  

again that's a time-bound goal I hope you have  understood this one of the simplest parameters  

now before we conclude I would just like to add  that in the same song Shahrukh Khan says.......and  

I think that's what he followed in his  life whatever he thought he had to achieve  

I guess he did achieve it and that's why  I feel that he's called as the King Khan  

right if you feel that you would also want to have  smart goals and if you achieve them you can just  

imagine the joy that you are going to have after  achieving them so do not be late think about it  

write down your smart goals mention at  least one smart goal of yours in the  

comment section I had be really happy  to read it and I will be happy to help  

you if I can in my small own manner right  till then take care, Jai Hind and bye bye.

you