When we think about having financial success it can be hard to get on the right track and stay there for the long term. Having enough money and learning how to deal with short term expenses, although a good idea can become just another one of our new year's resolutions rather than part of our everyday lifestyle.

Breaking down our financial situation into SMART money goals is an easy way to make sure you are adhering to a monthly budget and you gain new skills in doing this.

The first step is to be aware of what SMART means. This is a good goal that is Specific, Measurable, Achievable, Realistic, and Timely.

Obviously, this can seem overwhelming and we all have time constraints. However, this is the best way to set achievable goals. When completed, it will become second nature if you come to plan any other major purchases in your life.

Assess

Take a look at your current spending habits. Note your monthly expenses. This should include everything down to the takeaway coffees and gym memberships. Even items which you don't think you want to cut out. At this first small step include them all.

Sometimes this can be a bit of a shock as you realise just how much you spend on certain items but it's an important step. This shows the amount of money which disappears and you don't notice until the end of the month. Although it is hard to go through it in this much detail, knowing where you stand and what action you can now take gives you back the control over your financial security and eventually, you will have extra money.

Dealing with debts

Do you owe money in any way? This could be in the form of personal loans, credit card debt. Student loans or debt to a family member.

Student loan debt can feel like it never expires but savings which we will come to shortly, can allow you to make lump sum payments and rid yourself of this. Similarly, credit cards charge so much as they are high-interest rate debt and that's money which could be your retirement savings or for having a good time.

Try and consider how to minimise financial troubles by reducing these debts and making them a priority. Your overall financial situation will improve if you actively focus on making progress on this rather than avoiding thinking about it. No one wants financial stress and if overlooked your problem can escalate. To learn more about the risks click here.

Measurable goals

Now you know where you stand it's time to decide where changes and improvements can be made. This is where you can set a realistic goal for your life going forward. A personal mission statement!

A great way to start is to think about your short-term goals and long-term financial goals. Where do you want to be in your life in 1 year, 5 years or 10? We all need to save for the future but people are rarely successful if they don't also have short-term financial goals where they can see some positive results. This keeps you going!

Once you've written down where you would like to be; start by creating some specific financial goals and include a realistic time frame. Be flexible as life always throws a curve ball at us which is why having an emergency fund is so important.

Think about determining a budget each month. Decide where you can make cuts that don't impact you too much but will make a difference. This could be taking your own coffee to work, changing energy suppliers. Maybe you could scrutinise your food bill and shop cheaper. Make a fakeaway dinner instead of buying takeaways! You will be surprised how much money this will free up and this can be used to clear your debts.

Have a check-in each month to see how you are doing. How can you measure how well you did? Make a note and then look forward to seeing your progress each month.

Savings goals

Once you've begun to clear your debts it's time to think about saving for the future. This could be to give you a down payment for a car or even towards your first home.

When you're young it seems like all these big purchases are far away however there's never a bad time to start saving and every little helps. Saving for your retirement account is especially important. So many pensioners are left with very little to live off as they started saving late in life. Begin now with whatever you can afford. Often there are tax breaks as well for saving lump sums.

Every time you make a purchase consider if it's really needed. One tip is that when you see something you love, leave it and see if you are still thinking about it in a month's time. If you have already forgotten about it then it probably wasn't needed!

There are also always ways to make extra income if you want to hit your goals quicker. Taking a part-time job or doing extra shifts at work can help you reach your end result.

Always put even a small amount away into an emergency fund. Each deposit adds up, you will be pleasantly surprised how quickly this grows and how much difference it can make at the right moment.

In time living below your means can actually become quite addictive. You will have a greater peace of mind knowing that if a rainy day comes you have savings for a car breaking down, or you can cover your bills if you're off work. This gives a more significant feeling of satisfaction than anything you can buy in a shop.

Think about your financial future as one of the most important and greatest gifts you can give to yourself.