Everyone wants to have a comfortable retirement. However, several factors can affect your retirement lifestyle.…
Setting your sights on your financial goals is a proactive way to prepare for your retirement ahead. However, if you set your sights on unrealistic goals, you might set yourself up for disappointment and veer off track.
If your goals seem unreachable, it could be because there are flaws in either the goals themselves or the path to success you’ve set out; here’s what to do about that:
1. Break Down the Goals to Be More Specific
Instead of setting a general goal like saving $1,000 each month, break it into smaller, achievable tasks. This could mean setting weekly targets or creating a series of smaller plans to build upon.
For instance, if you’re saving for your child’s education, you could set a goal for each year of their time in school. If you’re working towards paying off debt, break it down by category. If you’re saving for a big purchase like a new car or a trip, set yourself up for success by making smaller goals along the way.
2. Start Working Towards Your Goals Today
It can be tempting to set goals but leave them to the future. However, it’s much easier to build positive habits and reach your goals when you stay focused rather than starting from scratch later. If you start working towards your dreams today, you’ll be able to set realistic targets that you can reach.
For instance, if you want to start saving more in superannuation, you could try making an additional contribution of, for example, $10.00 each week from today for a set time period. To work towards paying off your debt, try making an extra payment on your loan every month from now. If you’re saving for a big purchase, try saving up with a savings app. Every step you take towards your goals will get you closer to reaching them.
3. Create Small Wins to Keep You Motivated
Once you start working towards your financial goals, you’ll want to keep yourself motivated. One way to do this is by creating small wins to celebrate your progress. For instance, if you’re saving for a big purchase like your first retirement trip, you could reach your first goal when you have enough for airfares.
Instead of waiting until you’ve saved up enough for the whole thing, celebrate each stage of your progress. For example, when you reach $500, or the first 10% of your goal, treat yourself to something small that you can afford on your tighter budget.
4. Stay Productive and Accountable with a Budget
Thinking about money causes many people anxiety, which can get in the way of reaching your financial goals. However, a budget can help you understand your spending better and map out a strategy to achieve your financial goals.
For instance, if you’re struggling to save, use a budget to identify where your money goes. You can then plan to keep aside a portion of what you spend each week on ‘extras’.
If you’re trying to slim down your budget to prepare for living on a fixed income in retirement, a budget is a smart way to get started.
Try this free online Money Smart budget planner.
Achieve your goals and live your best life!
A financial goal isn’t worth much on its own – you have to work towards it. It’s essential to set realistic targets. To achieve your financial goals, break down long-term goals into smaller ones, and stay motivated by setting small wins along the way. If you want to take your financial goals from dreams to reality, use a budget to set out a plan for how you’re going to get there.
Newcastle Financial Planning Group provides expert financial advice for Newcastle and the Hunter. Our team of specialist financial advisers takes time to tailor our advice to our clients’ individual lives and goals. We are passionate about delivering the best possible outcome for you based on your needs. If you’re looking for a financial adviser in Newcastle, contact us today to book your complimentary first meeting to discuss how we can support you.
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.