You've been S.M.A.C.ed!

    While I have been working hard to stick to my budget and pay down debt (though, as I confessed, I have STILL been using the credit cards), part of my problem that I had weak goals. That didn't help my progress and it's not a good idea as you grow in your financial knowledge and want to work toward bigger dreams.

    I did have a had a goal: Get out of credit card debt by Sept. 2007.
    But that's a weak goal.

    Why? It isn't S.M.A.C.

    S.M.A.C. means Specific, Measurable, Achievable and Compatible. A good goal is SMAC.

    I learned this is the first seminar I ever attended about personal finance (actually, I was writing about a man who traveled the city doing these seminars and I watched his presentation to teachers at a local elementary school). It comes from the David Bach Finish Rich stuff.
    But I didn't pay much attention. I don't have a good excuse. I just felt like "Yeah, yeah. Goals. I got it, I got it."
    My mother always told me I was too smart for my own good.

    So let's overhaul my debt repayment goal.

    Specific: What are the details? What will it cost? How much time will it take?
    Weak goal -- Get out of credit card debt.
    Strong goal -- Pay off $10,989 on Mastercard by Sept. 2007.

    Measureable: How will you know if you're making progress? What checkpoints will you have?
    Weak goal -- I'll pay more than the minimum.
    Strong goal -- I will set up my online bill pay to put $700 a month on the credit card. If I earn extra money in a month, I will send a separate check for that amount.

    Achievable: What action will you take within 24 - 48 hours? Who will you share this with? What challenges might there be and how will you overcome them?
    Weak goal -- I'll start right away.
    Strong goal -- I will set up the automatic bill payment in the morning before work. I'll tell my guy what my plans are. I must be careful not to go over budget and shortchange what I put on the card.

   Compatible: What values does it help you accomplish? Will achieving this goal conflict with any your values?
    Weak goal -- It'll be better to be out of debt.
    Strong goal -- Eliminating my credit card debt will give me peace of mind about my financial security. It will help me lay a strong foundation for the future of my future family!

    That, my friends, is how I should have been laying out my goals. Even the things I mentioned in my Personal Challenge posts were good goals, but poorly planned.
    So here's a new goal for the week:

    I will reevaluate my budget to determine exactly how much money I would need to put on my credit card to pay off $10,989 by September 2007.
    If I do not have enough in my budget to pay off the total by September, I will determine how much more money I would need to do it.
    If this debt repayment by September 2007 is unrealistic, I will create a new repayment goal compatible with my current budget.

    How's that? And, remember, these things are never etched in stone. Life happens quickly and it doesn't wait for you to figure out what you're doing. Just keep checking to make sure things are working.

    DH
   
   

Comments

[Leigh Ann]

Just hang in there. Debt sucks, but you are on the right track. You will get it paid off. One day at a time!

[HC]

This is a great post. I'm pulling for you.

[leanne]

You are gaining so much perspective on how to handle your debt. Every day you are doing things to get closer to being debt free.

I just (finally) started my own blog and I tell the story of how I got out of debt. Check it out if you get a chance. :) Thanks!

www.changecanbeagoodthing.blogspot.com

~leanne

[Jennifer]

If you're still using credit cards, why not chop them up? That's what I did. It was scary but liberating. I've been using my debit card ever since and it really helps you avoid spending money you don't really have.

[Wanda]

Those are great tips... and good luck!

[Mission Debt Freedom]

You'll get there! Make a couple small goals at first to get some momentum going. If you have a small balance or two out there make that your first goal. When you pay them off, buy yourself something you've been wanting with CASH! A new cd, dvd, shirt, etc...just keep it small and do not use the credit cards.

[3ThingsAboutMoney]

Another fantastically useful post on how to think about debt. Hang in there and thanks for taking the time to inspire me with your thoughtful posts

[Clink]

sounds like you've got a much better handle on things. Good luck.

[BeefStooge]

I think you have an important asset that maybe you haven't realized yet. By keeping this blog and having dedicated readers you have ACCOUNTABILITY! Financial stuff is sometimes tough to do on your own because you can rationalize things to yourself (charging a new computer) whereas an accountability partner may raise an objection.

We (your readers) should hold you to your goals and objectives. I'll be the first to bark at you charge anything else...believe it!

[Moneymonk]

Very post post, sista. You're sure to get out of debt by following those steps