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Whilst it is the holiday season, and thinking about your 2020 financial goals is probably at the bottom of your priority list, there is no better time to do it than now. The year has gone by in a blink of an eye and we will be welcoming a brand new year in only three weeks’ time.
I believe the best Christmas gift you can give yourself is achieving the financial goals you have set for yourself, and your family, for the new year. Whether it is to pay down debt, build up your super fund or save up to buy your first home; having goals makes you accountable and keeps you committed.
I have laid down three simple goal setting steps you can follow. Before you start, grab a pen and paper and you could choose to do this alone or with someone else like a good friend or your partner.
Studies have shown that writing down your goals is more powerful and it increases your rate of success.
To increase the chance of accomplishing your financial goals, they should be
There are many online resources that can assist you with setting S.M.A.R.T goals, but this is one I really like that you can print and work from:
https://www.mcckc.edu/counseling/goal-setting/docs/SMARTGoalWorksheet.pdf
This process forces you to set realistic goals which are easy to track. An example of a SMART financial goal could look like this:
S – Purchase a 2-bedroom holiday apartment in Noosa in the next 12-18 months so that I can spend more time with my family who lives there.
M – Need to save an additional $25,000 for the home deposit.
A – I will reach this goal by setting aside $480 a week in a savings account.
R – I can reduce my shopping budget by $250 a week and cut down on Uber Eats to once every fortnight.
T – By saving $480 a week, I will be able to save $24,960 in 12 month’s time.
Now that you have identified your goals, it is time to take action and get the ball rolling.
Using the above example, you could establish a dedicated bank account called ‘Noosa Holiday Home’ and set up a weekly direct debit of $250 that is made into that account. In doing so you automate your savings regime and remove any possible roadblocks that could be preventing you from setting aside this money.
What separates the people who achieve their dreams, and the vast majority who don’t is discipline and action. You will achieve your goals if you are willing to take consistent action to reach them.
Checking in on your goals to see how you are tracking is always a good idea. It’s easy to get caught up in the day to day grind and lose momentum on what you want to achieve.
The end of the year and the beginning of a new decade is an opportunity to refresh and reassess your progress. It could also be a good time to update and re-evaluate the importance of your goals. It’s completely okay to scale them back or make some adjustments based on your current situation.
I personally like to do a quick check-in at the start of each month, as I said, there is no better time to start thinking about your financial goals than now.
Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.