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Everything you Need to Know About Setting and Achieving your Financial Goals

We already know that it’s important to have goals in life; they even teach us this in school as a fundamental skill to have.

However, when we look at goals in general, we can see that most of them (if not all) can be considered financial goals. This is because most goals require some form of capital to make it possible to achieve.

In this article, we talk about how to set financial goals and the steps you can take to achieve them.

financial planners in johannesburg

Importance of Setting Financial Goals

Financial goals are spending targets, savings, or investments that you would like to achieve over a set period of time. They type of goal you are setting usually depends on the phase of life that you are in.

For example, if you are a student, you may be saving for a new laptop, a new pair of shoes or maybe even your first car.

If you are already working full-time and thinking of starting a family, your financial goals may look like saving to put down a deposit on your first home.

Either way, whatever your financial goals are, setting them is the first step to achieving them. Without an end in sight, you may find yourself navigating your financial world with no direction at all.

Only once you have a goal in mind can you set a plan in motion to help you reach that goal, no matter what obstacles you may face along the way.

Financial Goals Examples

Every person’s financial goals will look different, but here are some examples of financial goals:

  • Starting an emergency fund
  • Paying off bad debt
  • Learning to live below your means
  • Formulating a solid budget which can be adjusted when necessary
  • Saving money for college/university/courses
  • Paying off student loans as quickly as possible
  • Saving for a deposit on a home
  • Starting a business
  • Saving for a comfortable retirement

How to Set Financial Goals – Tips from our Financial Advisors

Our financial advisors have put together a step-by-step guideline on how to set financial goals:

  • Establish what is important to you and evaluate it all. From serious and important to wild and fantastic, take stock of all your dreams and aspirations.
  • Start sorting them out into categories of what is within reach and what requires a long-term strategy to achieve
  • Use the SMART method. The SMART method was taught to all of us in school and is an excellent tool to help you set your financial goals in a way that puts even the biggest one within your reach
  • Create a budget which is realistic by getting a clear idea of your income versus expenditures. A good budget can help you tighten up in areas you are slacking

How to Achieve Financial Goals

Achieving your financial goals is made easy when you prioritize your goals. You can do this by sorting them into short-, medium-, and long-term goals.

As a rule of thumb:

  • Short-term goals can be achieved within a year and are often considered small to medium expenses such as going on holiday, replacing a worn out appliance or paying off a clothing account
  • Medium-term goals cannot be achieved immediately. Instead, it may take two or three years to get there. Examples include paying off a student loan, buying a car or finishing a degree/course
  • Long-term goals generally take more than 5 years to achieve and, therefore, require long-term commitment to a well-devised strategy to finally buy your first home, pay for your child’s tertiary education or retire comfortably

Olemera – Financial Planners in Johannesburg

Setting your financial goals is the first step to achieving them. Everything after that depends on sound financial advice and planning.

Some things we can do on our own and others are done better with the help of qualified, experienced professionals and this includes financial planning.

Our financial advisors can help you establish your financial goals while setting into motion a strategic plan to help you achieve every single one of them. Contact us for more information.

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