I believe the best Christmas gift you can give yourself is achieving the financial goals you have set for yourself, and your family, for the new year. Whether it is to pay down debt, build up your super fund or save up to buy your first home; having goals makes you accountable and keeps you committed.  

I have laid down three simple goal setting steps you can follow. Before you start, grab a pen and paper and you could choose to do this alone or with someone else like a good friend or your partner.

Studies have shown that writing down your goals is more powerful and it increases your rate of success.

Step 1: Write down S.M.A.R.T goals

To increase the chance of accomplishing your financial goals, they should be

• Specific
• Measurable
• Achievable
• Relevant
• Time-Bound

There are many online resources that can assist you with setting S.M.A.R.T goals, but this is one I really like that you can print and work from:

https://www.mcckc.edu/counseling/goal-setting/docs/SMARTGoalWorksheet.pdf

This process forces you to set realistic goals which are easy to track. An example of a SMART financial goal could look like this: 

S – Purchase a 2-bedroom holiday apartment in Noosa in the next 12-18 months so that I can spend more time with my family who lives there.

M – Need to save an additional $25,000 for the home deposit.

A – I will reach this goal by setting aside $480 a week in a savings account.

R – I can reduce my shopping budget by $250 a week and cut down on Uber Eats to once every fortnight.

T – By saving $480 a week, I will be able to save $24,960 in 12 month’s time. 

Step 2: Take action

Now that you have identified your goals, it is time to take action and get the ball rolling. 

Using the above example, you could establish a dedicated bank account called ‘Noosa Holiday Home’ and set up a weekly direct debit of $250 that is made into that account. In doing so you automate your savings regime and remove any possible roadblocks that could be preventing you from setting aside this money.

What separates the people who achieve their dreams, and the vast majority who don’t is discipline and action. You will achieve your goals if you are willing to take consistent action to reach them. 

Step 3: Regular check-ins

Checking in on your goals to see how you are tracking is always a good idea. It’s easy to get caught up in the day to day grind and lose momentum on what you want to achieve. 

The end of the year and the beginning of a new decade is an opportunity to refresh and reassess your progress. It could also be a good time to update and re-evaluate the importance of your goals. It’s completely okay to scale them back or make some adjustments based on your current situation. 

I personally like to do a quick check-in at the start of each month, as I said, there is no better time to start thinking about your financial goals than now.