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Landing your dream job. Getting fit. Winning Bake Off. We all have life goals and no matter how big or small, there’s nothing quite like the satisfaction of achieving them. What about your money? Are you as clear about your financial goals as you are about your life goals?
While the financial goals themselves are different for everyone – and are likely to change depending on your stage of life – knowing where you want to be monetarily and how to get there is important.
Here are five top tips for setting your financial goals and sticking to them.
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
You have you know what your financial goals are in order to achieve them, so the first step is to make a plan. When you have your plan, write it down. Whether you use a pen and paper or a personal finances app, this will help keep you focused and on track. Find ways to reward yourself when you tick a goal off too, you deserve it!
Setting yourself unattainable financial goals is a recipe for stress. It can also suck the fun out of life if you’re saving too hard. On the other side of the scale, it may cause you to overspend before you can afford it. By all means, aim high – but ask yourself if buying your own Caribbean island is a realistic target before committing to it.
For some of us, a financial goal may include saving for a major life event down the road, like a wedding, holiday, or retirement. For others, it’s about using our hard-earned salary to treat ourselves to something we’ll enjoy in the here and now. Ideally you should aim to have a combination of both long- and short-term goals. That way, you’re more likely to balance the fun of living for today with the responsibility of planning for tomorrow.
More often than not, prices rise over time. When you’re saving for something big, be sure to account for inflation. This is especially important if you’ve got a set deadline by which you want or need to buy it. For some goals like buying a home, planning a wedding, booking a holiday or dreaming up a home renovation, there may be additional charges you hadn’t accounted for, so plan to save a bit more than you think you need.
It’s important to have financial goals and stick to them. Yet, equally life doesn’t always go to plan. If you have a change of circumstances that means you fall short of your goals every now and then, give yourself some grace. But don’t give up either, just reset accordingly.
25 October 2023