SMART Analysis

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The SMART planning model is a universal outline of actionable steps used to set up goals that create a forward

direction that can be applied to any and all plans or goals that are important to ones present and future

ambitions.

The SMART acronym, when considering goals, begins with being specific in ones overall objectives or what

you wish to accomplish as a goal. In the case of Alice, her specific goal is to immediately start working, so that

she can start paying off her student loan, along with paying for her living expenses incurred, because she has

to support herself with the income she now earns though her employment. Another specific goal while earning

an income is to budget to purchase a home. Along with paying for her …show more content…

Setting a budget to

save for the purchase of her home, and sticking to that plan, no matter what comes her way will position her to

have saved enough money for a down payment. Again, this is measurable and attainable over time if she

follows her plan. This is also realistic and can be achieved over time or is timely.

Using the SMART analysis for each of her goals, we can easily see how staying disciplined and consistent will

help her achieve her goals.

Pay off student loan- So with her earned income of $35,720 a year, her student loan payments are $7700 a

year leaving $28020 remaining. Since this is an obligation with her continual payments, she will be able to pay

this off over time that will coincide with SMART, specific (paying off), measurable (payoff over time), attainable,

realistic, timely ( all possible over time, within budget to achieve).

Buy a house- Since she has only $28020 remaining of her budget, her rent of $10,800 and living expenses of

$14400, leaves her with a remaining amount of $2820 she has to save for the purchase of a home. Using the

same principles of SMART, this is attainable over time in terms of specifics (saving for a home),

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