Setting financial goals is a great way to ensure you’re always in control of your personal finances. Whether you’re looking to save towards a particular purchase or simply want to manage your finance so you spend less, using financial goals as a motivational tool can help you achieve your aims and even make you happier.
A financial goal is simply a target you set yourself within your own personal financial circumstances.
Some examples of financial goals might be:
These goals are quite general, but you can tailor them to meet your own individual circumstances. Specific financial goals based on the above might be:
The numbers will change depending on how much disposable income you have and the balance of your spending at present, but these suggestions should give you some idea of how you might want to lay out your financial goals.
You can also look to intertwine your financial goals. For example, in the points above we may use the $30 saving from the weekly shopping bill as part of the holiday savings fund, or use the saving from the first week of the month to pay the additional sum into the child’s bank account.
As the saying goes, ‘tomorrow never comes,’ and when it comes to financial goals the same is often true.
If you have financial goals then you’ll immediately have a focus and put your mind to achieving your aims.
Knowing why you’re saving money is also a key factor in helping you to achieve your goals. If you’re putting money aside but for no specific reason, you’re more likely to dip into it, as you’ll have less to worry about when spending it. That said, there’s nothing to say you can’t use ‘saving for a rainy day’ as a goal, so long as you’re confident you’ll have the discipline to keep saving!
“If you have financial goals then you’ll immediately have a focus and put your mind to achieving your aims.”
To set your financial goals you should make sure they’re all:
Another thing you should do is break your goals down into short term, medium term, and long-term goals.
Again, your personal circumstances may dictate that some goals need to be short term rather than long term, which may in turn influence how you set your own goals.
Below are some examples of the types of goals that might fall into each category.
“Committing to and achieving your financial goals can help you live the life you want in the long-term, and the feeling of satisfaction you will enjoy when sitting on the beach or travelling around the world will be immense.”
While you might already have some ideas in your head of what you want to achieve within each category, ensure that you focus on your short-term goals first. This will ensure you don’t find yourself trying to achieve too many financial goals at once, which will likely lead to you failing to achieve any of them as you find you have too little money to commit to all of them.
While financial goal setting and management can seem boring on the surface, once you engage yourself and think about what you can achieve, it’ll soon become apparent that it’s worth it.
Committing to and achieving your financial goals can help you live the life you want in the long-term, and the feeling of satisfaction you will enjoy when sitting on the beach or travelling around the world will be immense.
Disclaimer: This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.
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