Goal-setting ideally involves establishing specific, measurable, attainable, realistic and time-targeted objectives. Work on the goal-setting theory suggests that it can serve as an effective tool for making progress by ensuring that participants have a clear awareness of what they must do to achieve or help achieve an objective. On a personal level, the process of setting goals allows people to specify and then work towards their own objectives — most commonly financial or career-based goals. Goal-setting comprises a major component of personal development. A goal can be long-term or short-term.

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