Your guide to setting financial goals
Whether it's a lavish post-retirement lifestyle or a legacy to leave your kids, we Australians are always reaching for some type of goal or another. But how we go about reaching these goals differs from person to person.
If you're thinking about saving up for something, be it retirement or a university fund for your kids, a wealth coaching expert should be your first port of call. With help for mapping out your goals and picking a strategy, you'll be on your way to creating long-term wealth.
Before you settle on a goal, here are three questions you should ask yourself.
Is it achievable?
If your goal is to earn $1 million in a matter of days, you might want to rethink your timeline. Part of successful goal setting is being able to identify things that are achievable and realistic.
Consider the timeline for your goal and when you want to complete it by. Is it something you want to achieve in the short, medium or long term? These factors may help you choose your strategy. Something like saving for retirement is a goal that takes a number of years. Alternatively, saving for a small addition to your home may be a lot shorter.
There's also your own personal feelings toward the goal itself. Are you motivated? Is this something you're willing to make small sacrifices for in order to achieve? If your answer to both these questions is 'no', you might have some more thinking to do.
Are you financially ready?
Before committing to any investments or spending any money, you need to ensure you're financially ready to start your journey. Some may need to undertake debt reduction methods to ensure they can meet their obligations - whether it's payments toward an investment property or something else.
A wealth coaching expert will take a look at your financial situation, help you come up with a strategy and even show you how to manage your costs over the long-term. This is a crucial step when you're setting goals so you can get off on the right foot.
If you're undertaking a financial goal with a partner, make sure the goal is something that you both agree with and are ready for. If you're not on the same page, it can make your goals a lot harder to reach.
Do I have everything I need to start?
Finally, ask yourself if you've got all the resources to meet your goals. Aside from finance, you'll need knowledge and time to dedicated toward reaching your goal.