It’s a new year and, by default, a clean slate for most of us where we reflect on the past year and set new goals for 2023.
Within this year’s planning process, we thought we’d share some ideas for your 2023 financial goals and how to plan within your budget.
Defining the financial goal posts
When planning any type of goal or objective, it’s good to break these into short-term and long-term goals to better understand the timeframes and how realistic they are to meet within your means and budget.
You should aim to achieve a short-term financial goal within 12 months. A long-term financial goal is one you create that you won’t or cannot accomplish until some time in the future.
A long-term goal is generally not bookended by a particular timeframe, although it does tend to refer to a five to ten-year period.
An example of a short-term financial goal could be to save for a holiday, wedding or to recover from the festive season financial hangover.
Long-term financial goals could form part of your retirement plan , saving for a home deposit, or utilising future equity in your home to purchase an investment property.
Planning your financial goals
Planning your financial goals makes it easier to visualise and focus on what you want to achieve financially. By defining these parameters, you can budget the amount you’re able to save every month and calculate when you can realistically achieve your financial goals.
You want to be in control of your money instead of having your money control you, so share your goals with family and friends so they can not only support you but help hold you accountable for irresponsible spending decisions.
Harsh? Possibly, but in a digitally disrupted world that delivers anywhere between 6,000 to 10,000 digital marketing messages daily, it’s easy to find yourself caught up in the financial dust devil.
Where the financial rubber hits the road
Here are some practical tips and tricks to help achieve your 2023 financial goals:
Plan
We know we sound like a broken record, but a goal without a plan is just a wish (- Antoine de Saint-Exupéry). Find a financial planner who is as committed to helping you achieve your financial goals as you are.
Evaluate
Evaluate your short-term and long-term financial goals and assign a realistic amount you think you could commit to, based on your monthly budget and income.
Focus
Focus on clearing debt first, so you’re not whacked with unnecessary interest.
- Open an easy-access savings account and arrange your direct debits as soon as your pay lands in your account, so you’re not tempted to spend the money.
- Curb unnecessary spending and consider how much you spend on things like takeaways or eating out. On average, avoiding a daily takeaway coffee at $4.10 for a regular cappuccino could save you around $123 per 30-day month.
- Consider exploring side hustles or ask for an increase for a little bit of extra cash.
Our money-saving detox ideas
We came across a few money-saving detox ideas we thought we’d share with you.
Spendless months
Aim for a month where aside from the absolute essentials like basic groceries, utilities, fuel and mortgage, rent and car repayments, say no to any other spending.
Reward yourself for kicking a bad habit
Yes, this one seems like a juxtaposition but hear us out. If you’re a smoker, for example, or can’t help feeding your coffee craving, every time you don’t light up or avoid the drive-through, reward yourself by popping $5 into a savings jar. As you see the jar fill, it will encourage you to keep kicking the habit.
Weekly savings
A common savings practice in Europe, particularly Austria, is a ‘sparkasse’ (savings box). These are usually located in the local pubs with the idea that when the locals pop in for a pint, they contribute to their sparkasses. The owner of the bar or local watering hole keeps the money locked away and once per year, the individual can choose to open and redeem the savings or continue contributing.
The idea is to set up a similar concept for yourself using a savings app.
To discuss your 2023 financial goals or to help you plan your budget for the year, speak to one of our financial planners or contact us to make an appointment.