How to actually achieve your financial goals
More and more people are using their 20s to explore new skills and training, travel, socialise and make the most of their responsibility-free years. In saying that, your 20s is still a great time to set the stage for your financial future.
While being a married home owner with kids at 30 is no longer the financial milestone it once was, you can still spend your 20s preparing for the road ahead.
1: Make your goals specific and realistic
There is no use saying, “I am going to buy a new car at the end of next year” because you may get to the end of next year and not have any savings to actually do it and then be disappointed. Instead, set tangible and realistic goals that you can actually achieve in the short term i.e. “I am going to save $75 a week, by transferring this money into a separate high-interest savings account on the day I get paid, for 18 months to buy a new car. By that time, I will have $5400 saved to do it.” Breaking your goals down into short-term milestones that you can accomplish makes the whole process a lot more achievable and motivates you along the way.
2: Prioritise
We all have dozens of things we want to do but it is usually impossible to do them all, at least at the same time. Write down a list of your competing priorities and identify one or two goals that you want to achieve the most. Then you can create a plan and direct your savings, time and resources into achieving that goal, without feeling overwhelmed. .
3: Tell someone
Be it your partner, family member or friend. Involve someone close to you in the conversation around what you are trying to do. You can even set goals together so you can keep an eye on each other. Having someone else (who is positive and encouraging) throughout the process can be motivating and increase your likelihood of success.
4: Set reminders and deadlines
Write your goals down, set target dates and automate what you can i.e. direct your savings into a separate account. Set weekly reminders and alerts to keep you on track with your goals.
5: Set milestones and celebrate
Breaking down your overall objective into smaller milestones will give you a great sense of satisfaction as you achieve them and encourage you to keep going i.e. when you save your first $1000 or make $2000 back on your investment, take yourself (and your encouraging friend) out to breakfast to celebrate.
6: Identify stumbling blocks
Before you start, think about what could possibly prevent you from reaching your financial goals: Unexpected expenses, overspending or shocks to your income can affect your ability to reach your financial goals. Be specific about what these risks could be and brainstorm strategies to overcome any potential obstacles (including setting money aside for such situations).
7: Go easy on yourself
If you do face a hurdle or get side-tracked, don’t beat yourself up about it. Everybody makes mistakes and has blowouts and there is always time to start over and recover.
A great way to start achieving your financial goals is by completing the Your Financial Wellness Snapshot – this short online profile will help you outline your financial goals, as well as help you understand where your money comes from and where it goes. Once you're done you’ll receive a personalised 8-page snapshot report that will help you make real financial progress. Learn more about the Your Financial Wellness program benefits on our website and signup today!
Your Financial Wellness (YFW) is a Sydney-based data analytics and financial wellness platform providing innovative solutions to Australian financial institutions. Since launching in early 2018, the company has executed agreements with eight financial institutions providing access to a user-base of over 500,000 consumers. YFW is currently working with UNSW Sydney to deliver pioneering research into the financial wellness of everyday Australians.
For more information on YFW visit www.yourfinancialwellness.com.au
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