Setting financial goals is a critical first step in any plan. But many people get tripped up on one of the most basic steps: finding ways to measure progress and scale their goals to be realistic. By following the SMART goal strategy—Specific, Measurable, Attainable, Realistic and Timely—people can take more control of their finances and increase their chances of success.

Smart financial planning helps high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals and families create concrete objectives that align their assets with their ambitions, values and long-term vision. By breaking down broad financial aspirations into measurable, actionable goals, the SMART approach to planning can reduce stress and build accountability, all while improving decision-making.

Smart Financial Planning: A Guide to Making Informed Investment Decisions

For example, Jim and Elizabeth may have the goal of saving $1.5 million for retirement. To make this more specific, they could work with their financial advisor to break the goal down into a series of savings and investment targets. By determining the best accounts to invest in, including those that allow contributions to grow without paying taxes (unlike traditional savings), they can adjust their targets to make the $1.5 million goal more attainable.

Making a financial goal measurable can be as simple as writing it down and measuring your progress with a ruler. Achieving a measurable milestone gives you something to celebrate and helps keep you motivated. Achieving a measurable milestone also encourages you to push yourself, but be sure your goals remain realistic and within reach. For example, a lofty goal of saving $1 million in a year is unlikely to be achieved unless you have some unusual circumstance beyond your control.