SPEND RESPONSIBLY - Gaining financial control
Set some goals
It’s always good to have goals to aim for – they chart a course for the future as well as providing a benchmark of what we have achieved. But reaching goals is not always easy. There are certain steps you can take to help you achieve your goals.
A good starting point is to make your goals measurable. Setting general goals like “I want to save more”, is unlikely to work because you have nothing concrete to aim for. Instead, try giving each goal a benchmark. For example, you could aim to save $50 each week, and arrange for the money to be transferred to your savings account.
Writing your goals down is also useful as it helps you remember them. But be prepared to alter your goals for changes in your circumstances.
Try setting a timeframe for your goals. Divide them into short, medium, and long term objectives, but only set a few goals for each stage. And get the whole family involved - it’s a good opportunity to pass money skills on to your children.
Short term goals
These are goals that you expect to reach in the next one to two years. They may include things like saving part of your income each week for a holiday, or paying $1,000 off your credit card.
Medium term goals
These are goals you can achieve over three to five years, and they may include things like saving a deposit for home or buying new furniture.
Long term goals
These are goals that will take more than five years to achieve. Saving for your children's education, paying off your mortgage early or building a retirement nest egg are common examples.