As financial advisers one of the most common mistakes we see with our clients is poor planning.
If you fail to plan, you plan to fail.
Below are some simple steps to assist with planning to achieve your goals.
- Identify what the goal is
- Over a few days think about what it is you want to achieve (i.e. new car, holiday, home deposit).
- Write your goals down on a piece of paper or type it up on the computer. Studies show that you are more likely to achieve your goal if you type/write it down.
- Create a deadline for each of your goals (i.e. I want a new car by July 2021.).
- Determine the priority order of your goals (i.e. I need the new car before the holiday so this needs to happen first.)
- Break down the goal
- Work out how much the goal will approximately cost (i.e. New car costs $25,000)
- Break down the cost over the period you want to achieve the goal (i.e. You want the car by July 2021 and are paid fortnightly so have got 32 fortnights left to be able to save for the car – $25,000 / 32 = $781.25 per fortnight)
- Determine if there are any areas you can cut costs on your budget (i.e. If you trade your current car for $8,000 then you have got $17,000 left to go.)
- Decide if your goal is realistic, can you afford to save that amount? Do you need to adjust the goal or timeframe to make it more achievable?
- Collate all the details together
- Create a table/ list/spreadsheet.
- List your goals in priority order, outlining the repayments/savings required to achieve this goal.
- Place the goals on your fridge or on your phone screen saver, as having the list constantly around you will help keep the goal in the forefront of your mind.
- Tick off each fortnight when you have completed the repayments/savings, as this will be a constant reminder that you are on track to your goal.
- Spending with the end in mind
- Constantly remind yourself of the goals you have set and think of the end in mind when you have to go without that extra take away coffee or reducing the number of nights out for dinner, as this will enable you to keep saving for your goals.
If you follow these simple steps, your goals will be much easier to achieve!