Work out your own 2020 money vision for a happy new year
Missed money opportunities can cost you for life, so here’s how to set financial goals and stick to them throughout 2020.
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We’re only a few days into 2020 and many people’s new year resolutions are inevitably starting to wobble.
When a fitness, health or willpower-related resolution goes off the rails you can climb back on, but missed money opportunities can remain missed forever.
The good news is there are several simple ways to set and stick to financial goals, and build towards a bright money vision for your future.
Beyond Bank Australia deputy CEO Wayne Matters said a new year represented a new beginning in your calendar and many people had spare time right now.
“It is an ideal time to also create a mental break from old habits and start something new and positive in your life,” he said.
Mr Matters said a written plan was important and could perhaps be laminated and stuck on your fridge.
He added know what you want to achieve, make it realistic, and create a budget that shows money coming in and going out of your household.
“This might be tedious but, without a plan, your chances of success are slim,” Mr Matters said.
“Think about a lifestyle spend that you could cut back on to save a few dollars a week particularly if the new moderation might be good for your health too.”
Charlotte Kleut, 27, said she and partner Luke Davey were always forward thinking and setting large and small financial goals.
“We have just finished renovating a cottage, which required a lot of budgeting,” Ms Kleut said.
“Also we love travelling, so we like to set aside funds for at least one overseas holiday a year.
“In order to do these things we prioritise where we spend our money – little things like cooking meals at home rather than Uber eats and going for avo on toast.”
Consumer finance specialist Lisa Montgomery warned against getting carried away and setting a mountain of money goals.
“If you have too many financial goals you won’t achieve them,” she said.
“Only set yourself goals that you think are achievable.”
Having a long-term vision for your future is just as important as setting shorter-term goals.
“You can’t make goals around your financial health unless you have got a plan,” Ms Montgomery said.
When it’s a big plan, set incremental milestones to tick off along the way.
“Smaller milestones as part of a long-term strategy are the key to success,” Ms Montgomery said.
She said there were many apps and websites with online tools to help you set goals, or you could go old school and use a book or spreadsheet.
“For couples it’s sometimes a really good project that the two of you can do. If you are working with somebody to achieve something, often you are going to be more committed to it.”
Originally published as Work out your own 2020 money vision for a happy new year