Goal-setting ideally involves establishing specific, measurable, attainable, realistic and time-bounded (S.M.A.R.T.) 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. The primary difference is the time required to achieve them.