Financial Wellbeing Part 3
Financial Wellbeing means different things to each of us.
It can be as simple as your ability to manage your money. And isn’t necessarily dependant on the amount of money you have.
For me it is more than just being able to pay your bills.
For me it is a deeper sense of balance, a feeling of security that I am gaining control over my day to day expenses, and that there is an element of freedom to make choices to enjoy life and looking to the future having both short term and longer term financial goals.
Financial wellbeing and mental health (and then physical health) are closely linked: when one drops, we often see the other follow. There are 5 keys to financial wellbeing – this is the third article in the series of 5.
Key 3
Clear Goals And The Path To Collecting Them
Lots of things can affect the way you set your financial goals (including your money mindset)
What is really important to you? Home ownership? Investments? Helping family? Travel? Retirement? Goals are just day dreams with an action plan to make them happen. So we create the path to collect your dreams
What is a Financial Goal?
A financial goal is any plan you have for your money. You can have short term financial goals – like saving up $1000, or longer term financial goals like buying a house or investing for retirement. Having specific financial goals means you’re committing to what you want out of life by planning to save and spending consciously.
Goal planning takes intention and some self-awareness, so carve out time to think about your goals. If you have a partner create your own goals and shared ones – making sure there is alignment between them.
Find a few minutes to sit down with a cup of coffee or a glass of wine and get ready to dream—big! Once you have a list of goals for your money in mind, you’re ready to break them down into smaller, actionable steps. Here’s how:
1. Make your goal specific.
One reason people don’t hit their money goals is because they’re too vague. You might say, “I want to be better with money.” But what does that actually mean to you? Narrow it down. Or, “I want to upgrade my car someday.” Okay, fun! But what kind of car do you want, and when do you want to buy it?
2. Make your goal measurable.
Okay, so your goal is to pay off debt. Now it’s time to pick an exact amount—what you can measure to know if you hit your goal or not.
While being completely debt-free may be your ultimate goal, it’s a good idea to break down that goal into smaller chunks. That way, you have a vision of where you’re going before you get started.
Say you have $30,000 of total debt. You’ll want to start by paying off your smallest debt, like a $15,000 student loan, first. That’s what I mean by setting a measurable goal.
3. Give yourself a deadline.
Here’s the deal: It’s super easy to put off your goals when they aren’t time-sensitive. Stop saying you’ll start someday. You need to give yourself a deadline and make it reasonable—but also a little challenging.
Now, some goals fall into the short- to mid-term category, and these can be tackled in less than five or so. Think of long-term goals as ones you’ll achieve in five years or more. Here are some examples of short- and long-term financial goals:
Short- and mid-term financial goals:
Saving up an emergency fund
Saving for a holiday
Buying a new kitchen appliance or renovation
Putting down a deposit on home
Buying birthday or Christmas gifts
Long-term financial goals:
Buying a new car with cash
Saving for retirement
Launching a business
Traveling for several months at a time
4. Make sure they’re your own goals.
When we compare ourselves to other people, we’re playing a game we’ll never win. So, make sure you’re setting financial goals that make sense for you. In other words, just because all your friends are taking out mortgage topups to renovate their kitchens doesn’t mean you should. Put the blinders on, focus on your goals, and stay in your lane. And be clear on why you’ve chosen the goals you have.
5. Write your goal down.
Did you know you’re more likely to achieve your goals if you write them down? Yep, it’s true—there’s something about putting pen to paper that helps you commit to the task at hand.
So, go ahead and write down your goals. Then, stick them in your car, to your desk, or on your bathroom mirror. Type them in a notes app on your phone, take a screenshot, and set it as your wallpaper so it’s the first thing you see when you pick up your phone. Keeping your goals where you can see them will keep you on track and motivated.
6. Get a goal accountability buddy.
To take your goals one step further, find a goal accountability buddy – it might be your partner – or a bff - anyone who will cheer you on and check in as you keep working on hitting your goal. Having a cheerleader in your corner and knowing you’re not alone can make a huge difference as you work toward your goals.
What steps are you going to take to become more conscious in your knowledge of your income and spending?
If you are ready to understand your numbers – you can find me here –
How to find me –
Email – helen@duxfinancial.co.nz
Phone – 021 499 824
LinkedIn - https://www.linkedin.com/in/helen-m-grant-a4161824/
Facebook - https://www.facebook.com/helenmgrant.finadvice