Achievable Financial Goals in 2016
Many of you would have made some New Year’s resolutions for 2016 while most people make resolutions about their diet or weight it is also important for you to consider making some financial goals that will see you better off in the future. Whether you want to save money for a holiday, a new car or a house deposit these are all achievable with realistic goals that you know you can stick to. Below are some tips to get you started with your goal setting!
Review your spending from 2015
Review your statements from 2015 and highlight spending’s which are unnecessary or spending you could cut back on. You need to get clear on where you’re hard earned money is going and one great way to do this is a simple Excel budget template, they’re easy to use and free. For one month track every cent you spend and enter it into your budget template, you’ll be surprised at where your money is going.
A major unnecessary expense for households is entertainment, I’m not saying don’t enjoy life but here is an example. I spoke to a young family last week who have a subscription to Netflix, Stan and Presto that’s over $33 a month on TV! And they still go to the movies once every few weeks.
Cutting out anything that you can live without will be positive and will see your savings account skyrocket in no time! Here are a few examples.
- If you have a Mortgage look into how much you could save a year by refinancing.
- Shop around for a better Internet and Phone plan, and avoid contracts where possible this will make it a lot easier to switch when you find a better deal.
- Write a list and have a plan for what you will cook for dinner each night before you go food shopping, this will help to prevent impulse buying.
- Buying lunch each day also has a large impact on your pocket and your waistline so try making lunch instead of buying it.
- Instant coffee may not taste as nice but try drinking it instead of buying it (the average coffee is $3.75 x 2 a day =$52.50x 52 weeks that’s $2730 a year.
- And if you smoke well… you’re wasting around $6,500p.a. Do I need to say more?
- Do a spring clean and sell everything you have accumulated and no longer use on Gumtree or eBay, this will help kick-start your savings.
Set Realistic Goals
Now that you are aware of what you spending and need to cut back on you can use a savings calculator to help set yourself realistic goals for the year. It is important to set goals because without them you have no target to reach and will be easily distracted and become disinterested. It is also important that your goals are realistic and measurable and don’t forget to reward yourself when you achieve your goals.
Set Specific Milestones
Setting smaller goals to achieve your long-term goal is the key to success. Your long-term goal may be years ahead so set smaller short-term goals along the way to keep yourself interested and your long-term goal will suddenly seem much more manageable. A good idea is to check in with your goals every three months during the year to ensure you have hit your savings target and you are well on your way to success. Don’t forget, a goal without a plan is just a wish!