As we launch into the New Year, now is the time to start thinking about setting new financial goals. Before you get too overwhelmed and resort to researching goal setting templates, allow us to help you out. Keep these tips in mind when you start setting goals and you might just find you no longer need those templates.
1. Set specific goals
To make the most out of your financial goals, perhaps one of the most important things you can do is ensure you’re setting specific goals. If your goals are too vague, you may not be as motivated to achieve them, so be as specific as possible1. For example, instead of setting a goal of ‘save more money’, specifically state how much money you wish to save1.
2. Make measurable goals
Going hand-in-hand with making your goals specific, it’s also a good idea to make sure your goals are measurable. This means you should ensure there is some way you can measure whether you have achieved your goal1. For example, if one of your financial goals is to ‘save $100’, taking that goal further and making it measurable would mean adding a time constraint to it, such as ‘save $100 each month’1. In doing so, your financial goal now has parameters you can work within to make it more achievable.
3. Set deadlines for your goals
To ensure you’re setting financial goals that are as specific and measurable as possible, it’s worth setting a deadline for each goal. This keeps you accountable of achieving your goals and gives you the satisfaction of having something you’re constantly working towards1. Deadlines are also a great way of preventing you from avoiding or procrastinating meeting your financial goals, as you’re challenged to follow through on the task you’ve set yourself1.
4. Choose realistic goals
There’s no point setting goals that you know you won’t be able to achieve – what would be the value in that? Instead, focus on creating goals that are applicable to your life and financial circumstances1. It’s important to ensure you are not getting caught up trying to set goals that are too close to that of others in your life. Doing so could mean you fail to achieve your goals and your finances are impacted as a result1. To avoid this, when you decide on a financial goal to set, question whether there are any constraints that may prevent you from achieving it – this may highlight whether the idea is yours or whether you’re modelling your financial goals off someone else’s1.
5. Record your goals
What better way to make your goals official than by actually writing them down? There’s something about writing your goals down that makes them feel real and gives you encouragement to work towards achieving them1. You could even put your list of goals somewhere you’ll see them every day to remind yourself of them and give you the motivation to continue working towards your financial goals1.
6. Arrange goal check-ins
To make sure you’re meeting your goals and celebrating your wins, it’s worth having someone who acts as a ‘check-in’ buddy to help you keep on track1. Whoever you choose to be your goal-buddy, make sure they are someone who supports your ambition to achieve your goals and will help you along the way if you need it1. It also means that if you’re falling behind in attaining the financial goals you’ve set for yourself, you have someone to keep you accountable of getting back on track and avoiding any temptations that could prevent you from achieving your goals1.
7. Set short, medium and long-term goals
When you’re developing your financial goals, don’t just aim for the small, easily attainable goals, make sure you factor in the goals that are likely to take a little longer to achieve. Where short-term goals are achievable in the near future (such as saving a certain amount of money per month), medium-term goals take a little longer and long-term goals are your overarching goals you hope to achieve much further in the future (such as paying off your mortgage)2. It’s good to have a range of goals so you have something you are constantly working towards to shape your financial future2.
8. Create meaningful goals
The best goals are those you’re really motivated to achieve, so what generally motivates us? Usually something we’re passionate about is the motive behind our drive to do everything possible to achieve what we’ve set our minds to. That’s why it’s a good idea to set financial goals that you’re passionate about3. This goes hand-in-hand with setting goals that are truly your own and not someone else’s. If you genuinely want to save for a new car because you’re tired of your current one, there’s a lot of motivation behind achieving that goal so you’re likely to work hard to achieve it3. Keep this in mind as you think of the types of financial goals you’d like to set.
9. Limit your goals
While it’s great to have a range of short, medium and long-term goals, you also don’t want to get too carried away and set too many goals for yourself. Perhaps you’d like to minimise the number of overarching goals that take longer to achieve but have several smaller goals that are a lot more attainable over the span of a few months3. The key is to be practical about your financial situation and what is achievable for you in a year3. Keep in mind that there is no optimal number of financial goals – it changes depending on each person.
10. Try something new
Maybe you’d like to try something new this year and become better at managing your budget and paying your bills. Queensland Country Bank’s SmartBudget account can assist you in automating your bill-paying process so you have more time to focus on your budget and achieving your financial goals.
Terms and conditions of Queensland Country Bank’s SmartBudget account apply. View the relevant TMD available at queenslandcountry.bank. Normal lending criteria, terms, conditions and fees apply and are available on request.
General Advice Warning: This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider the appropriateness of the information provided. In particular, you should seek independent financial advice.
Sources
1Rachel Cruze, 2023, How to set financial goals: 6 steps, Ramsey Solutions,
https://www.ramseysolutions.com/personal-growth/setting-financial-goals
2Carbon Group, 2022, How to set achievable financial goals for the New Year, https://carbongroup.com.au/wea-how-to-set-achievable-financial-goals-for-the-new-year/
3Bridget Casey, 2022, How to set financial goals for 2023, The Globe and Mail,