While Alice’s first goal is to pay off her student loan, she must first ensure she can maintain her current living expenses. This is a short term goal that needs to be addressed immediately. It also meets all the S.M.A.R.T. criteria of specific, measurable, attainable, realistic and timely. Alice has addressed this goal by setting aside $14,400 of her income to pay for rent and other expenses. Her current annual income is $35,720, leaving $21,320 available for her other goals (P ersonal Financial Planning (n.d.), p.19).
Moving on to Alice’s goal of paying off her student loan, while