SMART Goals
In a SMART goal, this letter means the goal identifies exactly what you're saving for.
S = Specific
Shelter, basic food, healthcare, and basic clothing fall into this category.
Needs
This is the amount you earn before taxes and other deductions are taken out of your paycheck.
Gross pay
This type of pay gives a worker a fixed annual amount that is divided into regular paychecks, rather than paying them for each hour worked.
Salary
Having a firm date that you intend to accomplish your goal by makes it what?
T = Timely
Streaming subscriptions, concert tickets, and the newest phone are examples of this category.
Wants
This is your take-home pay after taxes and other deductions have been removed.
Net pay
What additional income might somebody working in a restaurant or driving a taxi be expected to earn?
Tips
A goal to save "$2,500" demonstrates this SMART characteristic because the amount can be tracked.
M = Measurable
A financial goal involving a summer trip or $500 starter savings would fall into this time category of goal.
Short-term
You complete this form when you start a job to tell your employer how much federal income tax to withhold.
W-4
A worker who is paid a percentage of what they sell is receiving this type of income.
Commission
A goal should have this characteristic if it is realistic given your income and circumstances.
A = Achievable
Buying a home, paying off debt, and building wealth are examples of goals in this time category.
Long-term
Your employer sends you this form each January summarizing what you earned and what was withheld for taxes during the previous year.
W-2
What is the most common pay period in the United States?
Bi-weekly (every two weeks)
OR
Semi-monthly (1st and 15th)
This SMART characteristic asks whether the goal actually matters to you rather than being based on someone else's values.
R = Relevant
This concept explains what you give up when you choose to spend your money on one thing instead of another.
Opportunity cost
1. What is the percentage witheld for Social Security? (250 points)
2. What is the percentage witheld for Medicare? (250 points)
2. 1.45%
1. What determines how much federal income tax you pay? (250 points)
2. How much state income tax do you pay in Illinois? (250 points)
1. Dependent on your income; more money = more taxes
2. 4.95% flat rate (everybody pays the same percentage)