Confidence counts for so much in life; it helps us get the dream job we want, take on new challenges, and navigate the obstacles life can throw at us. Financial confidence is an important part of this; it helps us take control of our money and gives us a much stronger chance of fulfilling the goals that matter most to us.
We all have different goals we want to achieve, whether it’s buying our first house, travelling to Europe or retiring at 50. What we tend to forget though is that our goals are directly impacted by our financial situation – and wishful thinking alone won’t get us there. Therefore, the first step towards reaching your goals is taking control of your finances, so you can make sure that your bank account matches your dreams.
We’ve all heard someone say, “I need to save more,” or “I want to get out of debt.” These goals are all well and good, but how do you know when you have achieved them? How do you know how much “more” is? Setting yourself goals you can actually track and see progress is key! And there is nothing more exciting than ticking off a goal as you achieve it and moving onto the next one. To ensure you actually stick to them and stay motivated, they need to be SMART goals; specific, measurable, achievable, realistic and time-bound.
Let me explain…
Specific
It can be tempting to set a goal like “improve my finances”, but what does that mean? When you look back in 12 months to see if you have achieved it, how will you know? Be as specific as possible with your goal.
Measurable
Just like going to the gym, if you can’t measure your improvements, how do you know you have got fitter? The same goes for your finances. If you can’t measure your progress, how will you gauge it and therefore keep yourself motivated? To do this, you need to clearly state what you want to achieve in terms of what can be measured. For example, “I want to save $100 a week.”
Achievable
If your money goal is not something that you can truly work towards or potentially achieve, then what’s the point? Don’t set yourself up for failure by deciding to save $1 million by tomorrow. Write down what you need to do each week in order to achieve the ultimate goal and be realistic about what is possible for you. Break down your big goals into easier, smaller goals if that helps keep you motivated.
Realistic
It’s important to strike a balance and set goals that are both challenging and realistic. Be honest with yourself about what obstacles you can overcome and what you can manage – but don’t undersell yourself! You will be way more proud of yourself if you achieve a goal that is financially challenging.
Time-bound
Finally, your goals should have a deadline. Make sure you set a specific time by which a certain goal needs to be achieved, so you can break down your progress into quarterly, monthly and weekly goals in the lead-up to that date.
When you have decided on your goals, write them down! There is something magic about putting pen to paper and writing down what you want to achieve. It gives your goals life, it serves as a reminder and they will become a lot more real. It also gives you the confidence you need to have a financial future you are proud of.
Positive notes:
The right tools to keep track of your progress and stay on course to success.
Disclaimer: This article is intended to provide general information only. It doesn’t take into account your personal circumstances or investment needs, and isn’t intended to be viewed as investment or financial advice.
