7 ways to create realistic financial goals that you'll actually stick to
Establishing robust financial habits not only fosters comfort but also alleviates anxieties about the road ahead. A positive change in our financial circumstances commences with a shift in our money mindset. When you shift to creating lasting change, you can achieve more than you believe is possible.
When creating financial goals that you’ll actually stick to, parallels can be drawn between achieving physical and financial fitness. Let’s take a look.
- Precision in Goal Setting
Just like any other endeavour, the path to financial well-being requires setting clear objectives that are both quantifiable and feasible. Whether it's building an emergency fund or saving for a major purchase, your goals need to be well-defined and measurable.
Just as a fitness regimen consists of various exercises targeting different muscle groups, your financial goals should cover different aspects of your financial life.
- The Inaugural Step
The hardest part is starting – there will always be competing priorities. Think of it as taking one step at a time. Starting your financial goals might feel overwhelming due to competing priorities and uncertainties.
Start small and build momentum gradually. Establish a budget, track your expenses, and save a modest amount regularly.
- Avoiding Extreme Measures
Remember, lasting change comes from sustainable actions. Financial quick fixes like waiting for bonuses or tax returns won't foster healthy habits and can lead to financial fatigue. Instead, embrace gradual progress; small efforts compound over time.
The allure of crash diets can be tempting, but they rarely yield lasting results. Instead, opt for consistent, manageable actions. Focus on building sustainable habits, like making regular contributions to savings or investments.
- The Power of Knowledge
Equip yourself with information. Education is a powerful tool in achieving financial well-being. Understanding the options available is pivotal to making informed financial decisions. Gain a comprehensive understanding of your financial options.
Research investment opportunities and strategies that align with your goals. Knowledge empowers you to navigate the complex landscape of personal finance confidently.
- Exploration of Strategies
Just as someone might prefer running over cycling, finding financial strategies that resonate with you enhances your chances of long-term success. Experiment with diverse approaches to identify what resonates best, reducing stress and enhancing commitment.
Opt for strategies that resonate with your values, minimise stress and amplifying commitment.
- Consistency
Success lies in cultivating steady habits over time, ensuring enduring benefits. Just as regular workouts lead to improved physical health, cultivating small, consistent financial habits over time leads to enhanced financial well-being.
Set up automated transfers to savings accounts, make incremental increases in contributions, and avoid overspending.
- Intermittent Rewards
Occasionally treat yourself. Sporadic indulgences can enhance well-being and acknowledge hard-earned victories. Rewarding yourself for achieving financial milestones enhances your commitment and prevents financial fatigue. It's essential to strike a balance between frugality and enjoyment.
By embracing these principles, we not only engineer realistic financial objectives but also cement a commitment to achieving them. That’s the key to lasting financial prosperity.
Amanda Thompson, author of Financially Fit Women, is a sought-after speaker and qualified financial adviser. As the founder of Endurance Financial, Amanda is driven to support women to have a great relationship with money and own their own financial success. For more information visit www.endurancefinancial.com.au
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