Setting future goals will help you stay on top of your finances and allow for those fun purchases that make your life more enjoyable.
Everyone needs something to work towards but having a clear goal in mind isn’t the whole picture – you also need to have the discipline to reach that target.
Find your ‘why’
It can be difficult to stay motivated to save money for a long-term goal when it might be months or even years before you achieve your savings goal.
To reach your target, it helps to be specific about what you are saving towards and understand why this savings goal is important to you. Having a clear goal with a purpose and accountability will help you maintain that motivation to save money.
The clearer the goal, the greater your self-motivation will be and the chance of you sticking to it.
The big goal for many people is usually saving for a first home. I’ve made it my mission to help Aussies access their dream home for decades, but the ‘great Australian dream’ of saving for your own home isn’t the ‘be all and end all’.
Your big goal might be saving for a new car, a kitchen upgrade, or a holiday.
Whatever it is, the same principles of saving and budgeting apply.
Goal-setting tools
Some of the readily available tools that will help you on your way include:
- Money Diary: Use a diary to track your spending and see where you can cut costs.
- Budget Planner: A plan with a clear savings goal to work towards will help you stick to your budget.
- Savings Account: Set a long-term goal or plan for the future, then work out how much you can afford to set aside in a high-interest savings or investment account each week or each month, according to when you get paid.
Self-motivation is key
The best way to stay on track with your goals is to visualise enjoying your purchase.
If you’re saving for your first home, maybe spend some time each weekend researching where you’d like to live, by visiting the local cafes and taking a walk around the area.
Experiencing what your life may be like living in the area is a great motivator and reminder of why you’re saving in the first place – you can even involve the whole family.
Having a shared goal can help everyone feel like they’re working towards something together.
Fun goals are important, too
Goals don’t always need to be big and serious like a house. There are also those fun mini goals to work towards that make your life even more enjoyable. Why not make room in your budget for those things that bring you joy and add value to your life?
Want a new TV to watch the footy with family and friends? Or a barbecue and outdoor setting for summer get-togethers and holiday celebrations?
Gimmie lets you achieve your mini financial goals without taking a chunk out of your savings. You have the freedom to pay over one or two years – in weekly, fortnightly or monthly instalments that suit your lifestyle.
For more financial education tips, head to On the Money with Mark Bouris
