Financial goals are often like New Year’s resolutions – we’re really excited to make them, but they can easily slip off our radar after a while. When it comes to your goals, putting relevant and feasible ones in place will allow you to develop an effective plan to achieve them. Some people find it difficult to create financial goals, whereas others make goals easily but have trouble sticking to them.
This blog will advise how to create informed financial goals and strategies to stick to them!
Setting your financial goals
Write them down
When setting your financial goals, writing each one down is a great way to envision them. Putting pen to paper solidifies these goals and makes you more likely to achieve them. Make copies and put them in places you’ll see them, such as on your fridge and the bathroom mirror. Set your goals as your phone screensaver, too, so you’re constantly reminded of what you’re trying to achieve and what the end goal looks like. It’s also a good idea to share your goals with someone who will keep you accountable. This might be a friend, partner or family member who will remind you of your goals if you start to stray.  Some examples are below:- Retirement planning
- Accessing super
- Provide your children the best possible future
- Financial independence
- Become debt free
- Buy a home
- Plan for your future
- Buy an investment property
- Protect yourself and your family
Be specificÂ
There is no point in setting a goal that says something like, ‘I want to have more money’ (don’t we all!). Instead, create specific, clear objectives – the more detailed, the better! By following the S.M.A.R.T framework (specific, measurable, achievable, realistic and timely), you’ll create a guide for your goals, making it easier to plan a strategy to achieve them. For example, instead of saying, ‘I want to have more money’, a S.M.A.R.T goal might say something like, ‘I want to save $10,000 to contribute to my emergency fund within the next six months’.Categorise them into short, mid and long-term goals
After writing out your S.M.A.R.T goals, group them into short, mid, and long-term categories. These can be categorised into the following:- Short-term financial goals: six months to five years.
- Mid-term financial goals: five to ten years.
- Long-term financial goals: more than ten years.
Set deadline
Deadlines are what will help you put together your strategy. While setting a clear end deadline is important, adding smaller deadlines to break the goal into manageable pieces is ideal. If we go off the goal mentioned previously, you might dedicate a specific amount monthly, fortnightly, or weekly. Setting reminders will help you stick to these deadlines. For example, you might set up a direct debit in your bank account, or a reminder as to how much you need to have set aside to meet these deadlines.Get into a good habit
Chances are that achieving your goal will mean you need to add or alter some of your existing money habits. Once you’ve gotten into a routine, it’ll be much easier to manage. To learn good habits, consider assigning regular days of the week where you’ll make progress towards your goal – whether that involves personal banking, reviewing your spending and budgeting or making a phone call – and stick to it!