For many of us, setting financial goals may seem like an overwhelming task that can quickly end up in the ‘too hard’ basket.  To help tackle this, here are a few simple steps to get you back on track to a path towards financial freedom.

Create a vision

The best way to start setting realistic financial goals is to determine what will motivate you. To get started, some questions you could consider are:

• What is your ideal lifestyle?
• Where do you want to live?
• What do you enjoy doing?

Whether your answers to these questions are humble or ambitious, the important thing is to make them as specific as possible and visualise yourself reaching them.

Build positivity with quick wins

While the first step is to think long-term about your big dreams, it’s important to begin focusing on smaller goals that will help get you there. Short team goals might include paying off your credit card balance or regularly depositing any extra funds you have into a savings account.

Reality-check your spending

To change your spending habits, you’ll need more than just willpower. Spend some time examining your bank statements from the last 12 months and you’ll get a clearer picture on exactly where your money is going.

You may be surprised to find that you’re spending a much higher portion of your income on non-essentials, such as going out or impulsive purchases. This simple exercise will allow you to quickly determine any areas you might be able to cut back on so that you can redirect these funds towards achieving financial growth.

Save before you spend

Another quick and effective budgeting technique that can generate momentum is to follow the rule of ‘paying yourself first’. Simply channel a portion of your pay towards your saving and investment plans before you start spending on anything else.  

Set staged realistic goals

Once you’ve taken the above steps, you can start to make more adventurous plans for the future. This can involve big-ticket financial objectives that will make a real difference to your wealth creation, such as paying down your mortgage faster, setting superannuation targets, or building a diverse investment portfolio.

Ask the experts

One phone call with an expert could be the start of a profound and exciting change in your financial journey. A financial planner can provide a range of opportunities and resources that can assist with wealth building, superannuation strategies, retirement planning, stockbroking and more.

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