Saving Money Grocery Shopping

We all know that coupons save money but here are a few other ways you can save money food shopping without having to spend your Sundays sifting through the paper cutting out all the latest coupons.

Choose The Right Store

Picking the right store to go to will make all the difference in the world when it comes to your grocery costs. While every store offers sales and discounts from time to time when you know which store consistently provides you the lowest prices on the items you buy everyday then you can maximize your savings.  Do you shop at a Whole Foods or Trader Joes? A national chain market like Vons/Safeway or Ralphs/Kroger or do you shop at a Super Wal Mart? Each of these stores will have a different everyday price for the exact same item. Take some time to figure which store has the best prices for what you buy.  It may seem like a lot work but you only need to do it once; if you were to buy a big ticket item like a new TV I’m sure you would take the time to shop around for the best price.  Well if you spend $200 per paycheck on groceries that comes out to $5,200.00 per year so it is in your best interest to invest some time into this research.

Find Alternatives To Expensive Items

What are the most expensive items on your grocery list? Have you ever looked over your receipt and determined which items are the biggest budget busters? When you know what the most expensive items on your grocery list are then you can begin to find alternatives you throw into mix to help lower costs.  A package of 4 sirloin steaks typically costs many times more than an equivalent package of chicken breasts. Or how about trying lean ground beef, which would be a much cheaper alternative to sirloin steak, and forming it into patties and cooking like you would a steak. That’s something I do for a quick weeknight meal many times.

Plan Ahead

Planning ahead is both a huge time and money saver, it will help you to avoid any last minute impulse buys at the store – those unplanned and unbudgeted impulse purchases are major budget busters. Before you go to the store take some time and plan out a menu of what you will eat for the week and the corresponding ingredients you will need.  It’s important to make this list while you are still at home so you can see what you have – see point below – and will not be unduly influenced at the last minute.

Use What You Have

Going right along with planning its essential that you use up everything you have already so that you are not throwing away and wasting food you bought but also don’t have to make unnecessary trips to the market.

Skip Prepackaged & Prepared Foods

When you buy convenience food such as prepackaged veggies or salads or any food where you let the grocery store do your kitchen chores for you then you will have to pay a premium.  I always see the pre-cut vegetables at the grocery store and they cost anywhere from a 50 cents to a couple dollars more than the natural state version.  It only takes a few extra seconds at home to wash and chop the vegetables so this is an excellent and easy way to make some savings.  Same thing goes with buying a Lunchables which could cost $4 per meal; it is much cheaper to buy the deli meat and cheese and crackers separately and use them to make lunches for a week.

Stock Up When Things Are On Sale

When you see that an item you buy regularly is on sale make sure you take this opportunity to stock up. There are a few ground rules though: make sure it is actually something you will use and would have bought anyway and make sure it has a long enough shelf life or that you can freeze it long enough to be able to use everything you are buying.  If the item on sale meets these criteria then by all means fill up the cart and enjoy the savings.

Check The Details

When you are buying things in bulk make sure you are actually getting a savings on the per unit cost.  Many stores and labels reflect the per unit cost along with the overall cost of the product. For example when trying to decide between a 12 pack of soda or a 2 liter check to see what the per ounce cost is on each and most likely you will find significant savings on the 2 liter bottle.  It’s the same product but by finding the best per unit cost you can max out how much money you are saving.

Buy In Bulk

Buying nonperishable things in bulk at warehouse stores such as Sam’s Club or Costco can end up saving you a lot of money over time.  Things to look for in this category would be paper towels, toilet paper, laundry detergent, rice, pasta, canned goods, etc… You want to make sure you are buying things that have a long shelf life and that will not go bad before you use them.  Otherwise you will end up wasting a lot of money.  Nearby our home there is a Sam’s Club that we use to buy our nonperishable staples and sometimes I get the idea to buy some of the vegetables there because the prices are just so amazing.  The reality is though that cooking for just Darla and me most of the time means that the food goes bad before we can finish it all off.  On the other hand if we were a large family and cooking for 4 or 5 people than I could clearly see how it would make great sense to buy my vegetables there.  So that’s the litmus test when it comes to buying in bulk – Can you finish it before it goes bad?

Move Your Eyes

When you are standing in the aisle at the grocery store take a moment or two to move your eyes up and down to some of the other shelves. Premium brands pay good money to make sure that their products are put at eye level so that they are the first thing you see and therefore much more likely the product you will pick up and put in the cart.  It’s like any other piece of real estate it all boils down to location, location, location.  If you look up or down you will find other brands of the same product that are typically a few cents to even a $1 or more cheaper.

Don’t Buy Personal Care Items At The Grocery Store

Unless you are buying your groceries at the Super Wal Mart chances are that you are over paying for items like toothpaste, shampoo and other personal care items. You typically don’t have to buy items like these on a weekly basis like you do with meats and vegetables; so when the time comes to buy these items go to a drug store or a dollar store or Wal Mart.  The same name brand items will typically be cheaper at these other stores than if you tried to buy them at your local grocery market.

If you can implement some of these alternatve methods for saving money while grocery shopping you will start to find that your weekly trip to the market will become less of a budget buster.  Combining these tips along with coupons would really allow you to maximize how much money you save while grocery shopping.

If you have any other great tips on saving while shopping let me know in the comments below.

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No excitement could ever equal that you may be feeling if you are about to tie the knot. Your wedding day surely would be the biggest day of your life. It would be very special not just for yourself and for your partner but also for your families, friends, and relatives. It is just normal to consider an extravagant wedding.

However, with today’s trying times, it could be a real challenge to make the big day special without incurring much costs. You may opt for a simple wedding instead but you would still realise that it would still be costly. Thus, financing weddings has become a popular concept in personal finance.

Interestingly, many loan and financial products available today are marketed as options for financing weddings. Are all of those reasonable and advisable? Of course, the answer is no. Many loan providers are just there for the business. Take it as a challenge to find and obtain the best financing option to fund the big day.

So how could a would-be-couple finance the big day? There are many ways. But for now, it should also be a priority to obtain financing options without getting into too much debt. No one certainly wants to be significantly indebted after the big day.

First, it would be ideal to save money for the wedding expenses. Nothing beats this idea. That is why urgent and unplanned weddings are not advisable. It would be great if the couple would have at least two years to financially prepare for the wedding day. This way, they could have ample time to save more money for all the basic big day expenses.

If all the combined savings of the couple would not be adequate to cover the whole wedding cost, that is the time financing should set in. There are a host of different financing options to explore. First would be personal loans. When obtaining these, try to choose those with the lowest interest payments. Personal loans could be in the form of cash advance or payday loans, which assume shorter terms.

If the couple has significant properties, they may apply for secured loans, which provide bigger loan amounts at lower interest rates. These loans could take longer term. However, be reminded that the longer the term, the greater your cost would be for servicing and maintaining the loan. More advisable are loans that may mature within just a year or less.

Lastly, consider using credit cards. You may use plastic cards to pay for several expenses in the wedding. However, do not use the card too much because it has higher interest rates applied. You may even opt to use the card’s balance transfer or cash advance feature.

Are you ready for the big day? After taking care of the finances, you may have to be prepared emotionally. Getting hitched is not a simple decision in life. Intend to make it last your lifetime. The ideal wedding would just be superficial. What matters more would be the union of the two souls who would exchange vows on that day. Best wishes!

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Saving money this winter is easy when you steer clear of these items and wait to buy them later.

Save Money By Not Buying These Items In The Winter

Summer Vegetables

When it comes to grocery shopping the best way to save money is by making sure you are buying the fruits and vegetables that are in season. I realize that depending on where you live in the country “in season” produce can vary significantly but when you stick to what is fresh and local you will reap significant benefits. It’s the classic Supply Demand scenario when produce is in season and local then the abundance of supply will lead to lower costs; in addition you will find that your food is better tasting and more nutritious.

Camping Gear

It seems that hanging out in the great outdoors is something that is enjoyed year round and there aren’t any major discounts during the winter season. In fact the best deals and sales on camping gear can be found during the warmer summer months.

Computers

Computers and other consumer electronics are back to their full prices now this time of year after all the sales and discounts during the Christmas Season.  If you wait a few more months you may find some good deals and discounts on technology because the Japanese fiscal year begins in April and there will be a lot of “end of year” closeouts for the older models.  Another great time to buy is in in August in line with the Back To School sales.

Summer Clothes

You might think that buying warm weather clothes in the dead of winter would be a great way to save but it actually isn’t.  The best time to save money on summer clothes is during the fall when retailors are looking to clear out the summer inventory. The fashion industry is always a season ahead so in late winter they are rolling out the New Year’s summer fashions.

Suitcases

Along the same lines as camping gear suitcases and other traveling gear are not heavily discounted in the winter.  You can find the best savings on suitcases starting in the Spring and hitting a climax in August.  With this in mind if you’re going to take a vacation this summer it would be best to wait until you get closer to your trip to buy your new suitcase.

Cars

January and February are probably the worst times to buy a car, contrast that with a few weeks ago in December which is the best time to buy a car. We’ve all been told that buying a car at the end of the month is the best as dealers are looking to make their monthly quotas.  Well the annual quota is the big enchilada and is a huge money saving opportunity for any would be car buyers.  The best time starts in the fall and gets better as the season progresses with the maximum savings at the yearend sales in December.

Snowblowers              

Normally by this time of the year much of the country has seen quite a few snowstorms and can expect a few more before the weather warms up and the spring thaw sets in; therefore the demand for snowblowers is at its highest in the winter.  Come spring you can probably find some good deals as retailors start looking to clear out any excess inventory.

Linens

Many people get excited about White Sales in January and think it’s the best time to buy sheets, towels and other linens but in reality when you compare these special sales to other sales throughout the year they really aren’t any better.  So while technically buying linens in winter isn’t really the worst time of the year it isn’t the best time either as many think.  So don’t wait and save up to buy in January you can feel safe that you are getting a good deal if you find later in the year.

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Are you considering investing in your child’s college education? Ever wonder which college savings program is right for your specific financial situation? Well you’ve come to the right place. In part 1, I discussed the 529 College Savings plans. You can read about the 529 college savings plan here:

529 College Savings Plan

In this todays post, I will talk about the second type of college savings plan: The Coverdell Education Savings Account.

Coverdell Education Savings Account

The Coverdell ESA is a type of investment account where non tax deductible cash is contributed into the account for the benefit of a child under the age of 18. The contributions are limited to $2,000 per year and contributions grow tax free within the account. Money withdrawn from the account is free from taxes and penalties as long as the money is used for qualified education expenses. If the money is used for anything else it will be taxed at standard income tax rates plus a 10% penalty.

Advantages of Coverdell ESA’s

• The owner of the account has the ability to direct the specific investment choices.
• A family member can contribute money to a Coverdell ESA in conjunction with a 529 plan.
• An unused Coverdell ESA can be rolled over for a family member of the original beneficiary.
• Withdrawals are tax free for students enrolled full time, half time, or less than half time.
• The account can be used for qualified education expenses for elementary and secondary education (kindergarten through grade 12) at public, private, or religious schools.

Disadvantages of Coverdale ESA’s

• The Annual contribution limit is $2,000.
• No contributions can be made to the account once the beneficiary turns 18.
• The money must be used by the time the beneficiary turns 30 or rolled over into another Coverdell ESA for a family member of the original beneficiary.
• Withdrawals cannot exceed the beneficiary’s qualified educational expenses otherwise it will be taxed.
• The contribution amount to a Coverdell ESA is phased out for married couples with adjusted gross income between $190,000 – $220,000 and for all others with income between $95,000 – $110,000.

Definition of Qualified Education Expenses

• Tuition, fees, tutoring, special needs services, books, and supplies
• Room and board, uniforms, transportation, and extended day programs required by the school in which the beneficiary attends
• Computer technology, equipment, and internet access

If you have any questions feel free to contact me by email at darla@personalfinancemastery.com or find me on twitter @darlaserrano.

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Ever wonder which college savings plan is right for your child?  Through the myriad of choices, it can be quite complicated to figure out which plan makes sense to your specific financial situation.  In this 3-part series of  blog posts, I will talk about the types of college savings plans available.  

There are generally 3 types of college savings programs available: 529 Plans, Coverdell Education Savings Plans, and Traditional or ROTH IRA’s.  This post covers the 529 plans.

529 plans consist of 2 types of programs, Prepaid Tuition Programs and College Savings Programs.

529 Plans – Prepaid Tuition Programs

With a prepaid tuition program, you can lock in future tuition at current tuition rates.  With college tuition inflation rate at about 8%, double the standard rate of inflation, this sounds like a pretty good deal right?  It is, but it’s important to weigh the pros and cons of this type of program.   

Advantages of 529 Prepaid Tuition Programs

• 529 Plans can be excluded from the taxable estate.  Very important if you’re ridiculously wealthy.
• You have full control of the asset and can change the beneficiary.
• Many states provide state tax deductions or tax exemptions for a portion of the contributions.
• Unused prepaid tuition benefits can be transferred to another family member.
• There is no annual contribution limit to these types of plans.

Disadvantages of 529 Prepaid Tuition Programs

• You must choose a college that your child will attend.
• Your child may not meet the academic and admissions requirements for that college.
• This type of plan prevents your child from choosing where he or she wants to attend college.
• The College you choose might be less than desirable for your child’s major or area of interest.
• Prepaid plans usually only pay for tuition and mandatory fees.

529 Plans – College Savings Plan

The college savings plan is a type of program which allows you to contribute cash to the plan and the contributions grow tax deferred.  The plan invests the contributions in growth funds, equity funds, bonds, and money market funds.

Advantages of 529 College Savings Plans

• The 529 College Savings plan can be used for out of state tuition.
• The plan can be used to pay for any qualified educational expenses, including room and board.
• You have full control of the asset and can change the beneficiary.
• These accounts generally have low commissions and management fees.
• You control the withdrawal and payment of expenses.
• There is no annual contribution limit to these types of plans.

Disadvantages of 529 College Savings Plans

• You do not have the right to choose the individual investments in the plan.
• You can only change the investment strategy once per year.

In part 2 of the series I will provide information on the Coverdell Education Savings Accounts.

As always, if you have any questions feel free to send me an email at darla@personalfinancemastery.com or find me on twitter @darlaserrano.  I can respond to tweets faster than email as I usually have over 1000 emails a day to sift through.

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Here are 9 Tax Deductions that expired at the end of 2011; for the millions of Americans that use these deductions you will find yourself with a higher tax bill the following Spring when you do your 2012 taxes.

Tax Deductions That Have Expired

MORTGAGE INSURANCE PREMIUM DEDUCTION

Starting in 2006 new loans that required Private Mortgage Insurance (PMI) and the borrower met certain income limits could deduct the insurance premium for PMI from their taxes. This deduction was a temporary measure enacted at the beginning of the Great Recession and it was set to expire at the end of 2011.

TUITION & FEES DEDUCTION

Taxpayers who couldn’t claim the American Opportunity or Lifetime Learning Credit were able to have up to $4000 deducted from their taxable gross income to help pay for school tuition and other educational expenses.

RESEARCH AND DEVELOPMENT CREDIT

This is a tax break that provides credits to business that spend capital investments in Research and Development of new products or technologies. It was designed as a boost to help increase innovation and subsidize research into new areas that might not have been carried out otherwise. It has to periodically be renewed by Congress, in the past they always have but as of now they allowed it to expire even though it has broad support among both parties and both houses and from many business and scientific advocates. It is perhaps telling that a measure that has such broad support and that has been renewed many times before failed to be extended last year; the US government has proven itself to be very inept.

DEDUCTION FOR DIRECT IRA PAYOUT TO CHARITY

Previously retirees 70 ½ or older could direct up to $100,000.00 of the disbursements from their IRA (Individual Retirement Account) directly to charity and have those donations be excluded for taxable income. This was a program that also had broad support and benefited not only the retiree who was making the donation but countless others who would eventually be the beneficiary of the funds as used by the various charity organizations.  This along with other recent eliminations of favorable tax treatment for charitable donations has severely affected many charities who count on wealthy large donors so they can provide much needed help to those less fortunate.

WRITE-OFFS FOR STATE SALES TAX

This is deduction that will adversely affect millions and millions of Americans who live in states that have little or no state income tax.  This deduction allowed taxpayers to choose to either deduct state income taxes or sales taxes paid in state from their Federal taxes owed to the IRS.  With the choice gone millions of taxpayers will not be able offset their Federal taxes as they have been able to do before. 

HIGHER MASS TRANSPORTATION BENEFIT

This deduction was part of the 2009 Federal Stimulus program that increased the amount a person could have deducted from their paycheck to help pay for commuting and transportation costs from $120 to $230.  The $230 mark brought this benefit in line with what is allowed for parking compensation.  In 2012 this deduction will drop back down to $125 and any employees who have asked to have the amount deducted from their paychecks will find a rude surprise when their paychecks shrink even more because all the difference is now subject to full payroll taxes.

TEACHER’S SUPPLIES DEDUCTION

Previously teachers were able to deduct up to $250 for classroom supplies they paid for out of their own pockets.

ALTERNATIVE MINIMUM TAX PATCH

Don’t even get me started on the AMT! I have ranted and raved many times about the Alternative Minimum Tax, you can find out more about the AMT here, it’s a post I wrote the last time they failed to create a patch.  Basically the tax was an alternative tax created in the 1970′s designed to make sure the “rich” pay their fair share.  It eliminates all other deductions and charges a flat 25% tax on total income. The problem is that the numbers are still locked into what was “rich” in the 1970′s and have not been updated for inflation.  So guess what, under the numbers most Americans fall into the alternative tax. Every year Congress has to issue a one year temporary patch to update the numbers to reflect inflation otherwise it reverts to the 1970 numbers. Another thing that bugs me the most about this tax is that every year when they update the tax they do it so more and more Americans fall under the higher tax and in reality the “Rich” never really pay the tax.  Check out the post I linked to in this section and you will see what I mean.  It’s just another way the government dupes the public with false talk all so that they can increase taxes on middle America.

PERSONAL TAX CREDITS APPLIED AGAINST THE ALTERNATIVE MINIMUM TAX

Previously it was possible to apply your tax credits such as the tuition credit or dependent care credit against what you would owe for the Alternative Minimum Tax.  This along with the expired AMT patch will force tens of millions of Americans to pay significantly higher taxes in 2012.

There you have 9 of the most commonly used tax deductions that were allowed to expire at the end of 2011 and unless Congress is able to take positive action to fix these conditions you are very likely to see a much higher tax bill when you do your 2012 taxes.  

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An eye opening video about the the financial state of many Americans and yet in the end there is hope that we can persevere and master our personal finances and build the foundations for True Wealth. This is why I became a financial planner, this is why I created Personal Finance Mastery; I want to help people by giving them the right knowledge and resources they need to take control and live better lives.  I hope you enjoy this video as much as I do; a few sobering facts combined with simple time tested tips to help you master your finances.

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Things You May Not Know About Traditional IRA's

• Traditional IRA’s are never joint accounts.  They are meant only for the individual.
• There is no minimum age requirement to participate in traditional IRAs.  Your children can have a Traditional IRA as long as they have earned income.
• However, you must be under 70 ½ in order to make contributions to a Traditional IRA.
• The Traditional IRA must be set up and funded on or before April 15 of the following year.  For example, for 2011 tax year, you can set up and fund an IRA on or before April 17, 2012 to receive the tax deduction for 2011.  Taxpayers  have 2 extra days to set up their Traditional IRA’s.
• A spouse’s income counts for the individual.  For example, if you are a stay at home parent with no earned income, you can still contribute to a Traditional IRA if your spouse has earned income, as long as your spouse’s Adjusted Gross Income is below the AGI Phase out Limits.

 
• Traditional IRA’s may be subject to creditors and lawsuits depending on where you live.  States like Texas and Washington protect virtually the entire IRA, while other states such as New Hampshire and New Mexico protect none of it.  Here in California, the amount of your Traditional IRA protected from creditors is at the discretion of the judge presiding on the case.  An umbrella Insurance policy would help protect your assets in a Traditional IRA in the event of a lawsuit.
• The first Million in a Traditional IRA is protected from Bankruptcy.
• Traditional IRA contributions are 100% tax deductible if:
• You’re not an active participant in an employer sponsored retirement plan.
• You are an active participant in an employer plan and your Adjusted Gross Income is below or within the AGI phase out limits established by the IRS.
• If your income is within the AGI Phase out limit, you can calculate your  Non Deductible amount with the following equation:
• Non-Deductible Amount = IRS Contribution Limit x (Your AGI – Low Phase Out)/$10,000
• For example, a single taxpayer contributes $5,000 to a traditional IRA and has $65,000 AGI:
• $5,000 x ($65,000 – $58,000)/$10,000 = $3,500 of contribution is not tax deductible.
• Only $1,500 is tax deductible ($5,000 contribution – $3,500 non-deductible amount – $1,500).
• Investments such as Life Insurance and Collectibles are not allowed in a Traditional IRA.

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Everything You Need In Oder To Do Your Taxes

It’s that time of year again when W2’s are in the mail and everyone starts scrambling around searching for those receipts from last year and wondering will I get a refund or will I have to pay. The 2012 Tax Season has arrived and one of the most common questions I hear is: “What papers do I need in order to do my taxes?”

I have put together a toolkit of what you will need in order to get your taxes done with a minimum of stress and a maximum refund.

Where To Do My Taxes

When it comes to doing your taxes there are many great options; you can have your taxes done by a Certified Public Accountant (CPA) or do them yourself from home using software like TurboTax.  If you choose to have your taxes done by a professional check to make sure they are a CPA which means they have gone through a more thorough education, have been tested and certified in the state you live and also have taken an oath to do things in your best interest.  Many times when you go and have your taxes done at places they only have accountants who have taken a few courses in accounting and that’s about it.  Always check for the CPA certification.  You can search for a local CPA by going to the American Institute of Certified Public Accountants (AICPA) which is the largest accounting association having been founded in 1887.  Another option is looking through a directory like cpadirectory.com or checking out your state’s local CPA association.

Otherwise a great option when it comes to doing your taxes especially if you don’t have a lot of complex issues is to do your taxes yourself using software from TurboTax. You can do your taxes from the comfort of your own home and all for very affordable costs. TurboTax has several different packages ranging from a free basic plan to do your Federal Taxes up to a home and small business package that costs around $80. They also have state versions to manage your state taxes.

What Paperwork Do I Need For My Taxes

Not everyone will need all the forms on this list so filter through it and take what most applies to you.

• All Work W-2 Forms
  • If your worked more than 1 job for the year make sure you have a W-2 from each employer
• All 1099 and 1098 Forms
  • From banks, credit unions, brokerage companies, retirement funds, unemployment compensation, state tax refunds, gambling winnings and any other miscellaneous income
• K-1 Forms from a partnership, LLC, trust or estate
• Real estate closing statements if your bought, sold or refinanced your home or property during the year
• A summary total of any personal property tax you paid on real estate, cars, motorcycles, boats, etc…
• A detailed schedule showing your business and/or rental income and expenses during the year
• A summary of your cash and non-cash charitable contributions
• A listing of any job related expenses
• A listing of medical expenses
• Your Social Security Card
• Names, birth dates, Social Security numbers of all dependents
• Names, addresses, Social Security or Federal Tax ID Numbers of any childcare providers and the amount of money you paid to each
• Prior year’s tax return
• Any federal or state tax correspondence you have received

Once you get all your paperwork together and put all those receipts together to compile your expense listings then you are all ready to get your taxes done.  Employers have to mail out your W-2 forms by the end of January so you should be ready to start doing your taxes by early February. One great tip I can give you in order to make everything much easier for next year is to use a service like ShoeBoxed that will scan and digitize all your receipts and important documents making it very easy for you to keep track of your expenses and always have important paperwork available without all the clutter. Best of all Shoeboxed accounts are IRS approved data depositories so you can have piece of mind that your information is secure and the IRS will accept its validity if you ever have to go through an audit.

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Developing SMARTER goals will lead to a happier, healthier and wealthier you in the new year.

The new year has begun and millions of people around the world have set out to accomplish their New Year’s Resolutions, unfortunately many people will not be able to succeed and successfully accomplish the goals they set out achieve.

Why is that? Why is it every year so many people start out on a great foot, full of motivation, energy and desire to accomplish lofty goals but in most cases by February most of these hopes and dreams have fizzled out.

The answer has little to do with the people making the goals and the actual objectives themselves and has everything to do with the way people create their goals.

The key to creating a successful goal is to use the SMART Principle when you set out make your plans. There is much debate and many versions of what the SMART Principle terms are; in fact it has been tweaked and modified in many ways depending on the group it is being presented too.  Below is a listing of my personal version of the SMART or as some use the SMARTER Principle along with all the other alternative word options I was able to find in my research.

Which of these word choices do you relate most with? What are your SMART choices?

Using my version as a guide these are the essential components of what make up a great plan for success.

SPECIFIC

The first thing you need to do when you are looking to create a goal or a plan is to whittle it down to its core components and become as specific as possible when defining what it is you want to achieve. How can you ever know if you succeeded if your goal is some vague hope or ideal? Your vision for achieving success must be as clear as crisp cool mountain spring water and it has to be as focused as a laser.

MEASURABLE

There’s an old Peter Drucker quote that goes: “What gets measured gets managed.” The only way to manage and control a successful outcome is to measure your progress. Your goal need to be organized into logically ordered parts, essentially split it into baby steps. The key here is to set things up so they can be tracked and watched on a timetable or progression chart. You want to be able to know how far along you are in achieving your goal, you have to have a metric to measure your success.

ACTIONABLE

This comes down to the syntax and wording you use when you create your goal. In step one you already focused in on very specific achievements then in step two you broke this specific goal down into bite sized tasks. Now you need to take this information and begin to write out your goal in action verb styled form. It needs to be written up as a task that can be acted upon. As an example you wouldn’t just write “market” if you needed to go to the store but rather “go to market and buy milk.” That’s something you can actually take action upon and do.

RESOURCED

Anything you want to achieve will need to have the appropriate resources, tools, and support easily available so you can accomplish your task. This can take many forms such as if you are trying to eat healthier it means stocking your house with lots of fruits, veggies and whole foods instead of candy and junk food. If you wanted to exercise more it would mean making sure your workout clothes are with you when you need them, your running shoes are in good shape, maybe having a workout buddy or signing up for a gym membership. Either way in any case no person is an island and we all aren’t John Wayne; you are going to need help achieving your goal and this step is to make sure you have everything ready to ensure success.

TIMELY

If you want to always create successful plans then you need to put a little pressure on yourself and give yourself due date. There has to be a due by time on everything you want to achieve or else other things will always get in the way and you will keep putting off until tomorrow.

ETHICAL

In order to live a rewarding and fulfilling life you need to make sure that your goals and objectives are positive and you are striving to achieve things that benefit the greater good. You need to make sure that the goal you want to reach is in line with your moral code and that your intentions are positive. When I want to achieve something I always like to look and make sure that what I want not only benefits me but also in some way helps others or provides service for others.

REWARDING

I tie this in with the earlier point that striving to achieve positive and worthwhile goals is the definition of success and is therefore a rewarding experience. In addition to that when you have made a great achievement it feels great, it’s an uplifting experience. You should relish those moments and celebrate your achievements when you succeed. On that same note tying in with the Measurable step you should reward and celebrate the micro-victories you get along the path to your end goal. Trust me when I tell you that when you do this you re-energize and re-motivate yourself to achieving what you set out to accomplish in the beginning.

That’s how I use the SMART Principle to help make sure that my plans are able to come to a successful fruition. Hopefully you can use it to help you achieve all of your New Year’s Resolutions.

Have you used the SMART Principle before? Has it helped you?

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