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Alice Should Be Specific, Measurable, Attainable, Realistic And Time

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A good financial plan should be Specific, Measurable, Attainable, Realistic and Timely. In life, failing to plan is equal to planning to fail and you have got to put your things in the right basket to be successful. With the case of Alice even though she had plans to live a debt free life in the future, if her plans are an illusion then it is definitely not going to happen and she needs more than just an idea to let it happen for her. Now let’s justify her case using the S.M.A.R.T model.

1. Specification, in order to get what you want out of something you need to be specific. For instance, if you move into a clothing store to get a new suit, you are literally not going to get every suit been hanged in that boutique but 1 or 2 of them and without pointing out nobody will know what you are actually after and the same goes with making proper decisions for our life. Alice was specific at what she wants to achieve; she wants to pay off her student loan, buy a house and save for her children’s education, accumulate assets, retire and travel around the world in a sail boat. She had a clear vision that needs to be established and that is what she is going after. …show more content…

Her Plans needs to be ‘Measurable’. Alice needs to get something done and in order to achieve them she has to know what, when, where, and how to do it to keep her on track. Alice was able to quantify her decisions into monetary terms and the number of years set to make this dreams real to achieve her short term and long term goals. She needs to know when to use her resources “Within the next decade, she foresees having a family; if so, she will want to purchase a house and perhaps start saving for her children’s educations” (Personal finance, P 12, ENGL1103TextbookBusComForSuccess_2 retrieved from ) It is actually clear that Alice has a measurable vision and so should every good financial plan

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