GOAL SETTING

Setting financial goals, doing a budget and saving for those goals go hand in hand. Your budget shows you how much you can save and your financial goals form the basis of your savings plan.

Set financial goals

Think about your goals and what you want to achieve financially over a period of time, be that short term, medium-term or long-term goals. Whatever your circumstances, by working out your financial goals and starting a regular savings plan, you can begin to make your dreams become a reality.

1-2

Years

(Short-term)

3-6

Years

(Medium-term)

Years

(Long-term)

Setting goals is just like having a destination and a budget is the road map to get there. This Budgeting and Goal Setting video provides some easy to follow tips and tricks to help get you started or back on track with setting your financial goals.

Transcript

You wouldn’t get into your car with no destination in mind and no idea how to get there, so why would you do that with your money?

What do you want to achieve in life that requires money? Think of your financial goals as your destination and your budget as your roadmap for achieving them.

It’s good to have at least one short, one medium and one long-term goal to work towards. Once you have a goal in mind, cost it out and work out how much you’ll need to save to reach it. MoneySmart’s savings goal calculator can help you do this.

Goals need to be realistic and achievable. An example of a short-term goal is an emergency savings fund to act as a safety net for when life doesn’t go according to plan.

A budget will tell you what you currently spend your money on and how much you have left over to save towards your goals. It will also allow you to make better decisions about how you spend your money.

Budgeting tools can make doing a budget easier. There are plenty of online tools ad apps to choose from, you might even prefer to use pen and paper. Don’t forget to include expenses you pay less frequently like car rego, insurance and utility bills.

If you follow these steps and are disciplined with your spending, you can make achieving your goals a reality.

Keep track of your goals

Saving is easier than you may think. The trick is to start small and start now. Set your goals, create your savings plan and transfer savings to a separate account.

If you want to calculate how much and how often you need to save to reach your goals, try Money Smart's Savings Calculator.

SAVINGS CALCULATOR

What are you saving for?

Your goal could be as simple as getting organised and putting some money aside for emergencies. Or you may want to go on a holiday, buy a house or car, or afford a comfortable retirement. Here are some additional helpful tips and examples to help you achieve your goals.