January is the ideal time to consider your money goals for the year ahead.
Not sure where to start? In this blog we outline 5 considerations to help you set your financial goals for 2021.
1. Define your short-term and long-term financial goals
Make a list of your most important long-term goals and then break them down into short-term milestones, whilst prioritising your ‘needs’ from your ‘wants’. These milestone goals will help you focus your attention for 2021, and therefore keep you on track for your longer-term goals.
2. Review/generate a plan
Now that you have your goals and milestones in place – it is time to make a plan to achieve this. Part of this plan may include you wanting to control where your money is going – Money Smart have a great budget planning tool to help get you started. If you already have a plan in place, now is a great time to review and check that you are achieving your goals.
3. Boost your savings
Feel like your savings are dragging their feet? Once you have a plan (as mentioned above), you can make a clearer decision on how much you can afford to put into your savings, but now is the time to commit to actually DOING IT. The concept of “paying yourself first” is a principle that is worth applying here – and that means that your savings (for your “future self”) is the highest priority. You do this before you get caught up with paying the bills or buying the next and greatest game, device or pair of awesome shoes.
Make smaller contributions to your savings weekly/fortnightly that coincide with how often your employer pays your wages. If you wait until the end of the month and only save what you have left over – you will NEVER progress as you should. You will find a way to pay those bills – but make sure you pay yourself first (your savings commitment).
4. Manage your debts
Avoid debts piling up and make sure you know exactly what you owe, that is, what are your short term and long term debts. This will give you clarity when prioritising paying off your debts and help focus on what you intend on repaying in 2021. If you have issues with your debt then this is where you may channel your attention from the “Savings” strategy mentioned earlier – which is a great way to start in any case.
- We have a great blog on ‘’Credit Cards – Friend of Foe’’ that you can look at for some more tips on this topic … You Tube – Credit Cards – Taming the beast or Blog – Credit Cards – Friend or Foe
- Or if home loan debt is of concern – then take a look at article – Comparing home loans – getting the best deal or go to our rates comparison site to checkout your current loan and how it compares – Compare and Save
5. Think about your long-term investments
Investing requires making informed decisions based on things that have yet to happen. The stock market is filled with uncertainty, but certain tried-and-tested principles can help investors boost their chances for long-term success. Our ‘8 Investment Principles for Success’ article can help you to achieve your long-term investment goals.
If you have any questions in relation to financial planning and setting money goals, please do not hesitate to contact us on 03 9886 0800 or via email.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).