Which of the following is the best example of a well-stated financial goal?

A well-stated financial goal is specific, measurable, achievable, relevant, and time-bound (often summarized as the SMART criteria).

The choice of purchasing a $3,000 computer in 18 months encapsulates these qualities. It specifies the exact amount of money needed ($3,000), states what the goal is (buying a computer), and provides a clear time frame (18 months). By being particular about the cost, the item, and the deadline, this goal can be easily tracked and assessed for progress, making it actionable.

In contrast, other options tend to lack clarity or specificity. For instance, wanting to pay off credit cards "as soon as possible" is vague and doesn’t provide a time frame or specific amount. Buying a $2,000 stereo does not indicate when this purchase will occur, making it less actionable. Similarly, while purchasing a three-bedroom home in five years provides a timeframe and a type of goal, it lacks the specific monetary amount necessary for a fully actionable financial goal. Therefore, the goal to buy a computer in 18 months stands out as the most well-defined and structured.