|
|
|
Setting goals
Saving for a specific goal is far more satisfying than saving simply because you know you should. Follow these 5 steps to help identify your savings goals.
Step 1: Determine your goals
Identify and write down your goals. Divide them into short term (0 – 5 years) and long term (5 years plus) goals.
Step 2: Needs versus wants
Further divide your goals into what you must achieve and what you’d like to achieve. Those goals you must achieve might be for example, paying the children’s school fees or meeting car loan repayments. Those goals you’d like to achieve, might include saving for an overseas trip or buying a piece of expensive jewellery.
Step 3: Prioritise your goals
It’s important to always prioritise your goals. An easy way to do this is by simply asking yourself the following questions:
- how important is it for me to achieve this goal within this timeframe?;
- would it be better to concentrate on another goal first and change my short-term goals to long-term goals?; and
- is this goal a ‘need’ or a ‘want’?.
In doing this you’ll focus on the level of importance of each goal. And discover, in some cases, that not all goals can be achieved.
Step 4: Long term or short term
The time frame you allocate to your goals is important when selecting the investment strategy you adopt. For example, to achieve long term goals you might benefit from a more aggressive approach to investing ie through shares or property.
Step 5: How do I get there?
Through budgeting and saving for your goals.
A financial planner can help you identify what you can achieve in the short and longer term by helping you put together a plan for your financial future.
A financial plan will capture your goals and objectives and set out your priorities. These goals and objectives change throughout your life stages, so the plan must become a living document that is regularly reviewed.
|
|
 |
Calculators |
 |
|
|
Further Information |
|
|
|