Simple tips on how to stick to financial goals.
It's one thing to have a goal when it comes to money, but it can often be another thing to stick to it.
I am sure everyone has read about SMART goals (Specific, Measureable, Achievable, Relevant and Time-Bound) which is a good place to start, but how to translate that into financial goals?
For our clients, we always start with:
- WHAT is your goal? And make sure it is written down
- HOW MUCH is your goal going to cost? Sometimes this is easy to figure out (eg saving for a home), and sometimes not (eg how much do I need to retire?)
- WHEN do you want to achieve your goal
With these three factors, you have a good starting point with why you are saving and investing your money. And we generally find that if people don't know why they are doing something - they won’t stick to it.
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How important are these goals to you really?
And of course, the ‘Relevant’ part of SMART goals comes into play - how important are these goals to you really? Are you willing to give up something now, in order to put more money aside to save for that goal? That is something that only you can answer - only you know how important your short term, medium and long term goals are - and you are always in control.
And as for the ‘Achievable’ aspect - we have found that some people are great with long term goals - the relevance of those long term goals are so high and important to them, that they can remain focused on them. For others, it can be a little harder, so consider some shorter-term ‘milestone’ goals to help you focus on the bigger picture with those long term goals.