Missing money goals can hurt, but recovery is easier than you think

Are your financial dreams and goals slipping away? Here’s how to create a plan and stay on track to become wealthier.

One month into 2024, many people’s new year resolutions are looking shaky as reality gets in the way of dreams, but there is good news when it comes to setting money goals.

Financial targets and tactics don’t have to start on January 1, experts say. February 1 is fine, or any other day of the year – the most important thing is to start.

Catapult Wealth director Tony Catt says people have a different lens on the world during the holiday period, then “when you get back to the hustle and bustle of work, life and kids back to school, it changes your behaviour again”.

Catt says financial goals often don’t require a massive effort, and changing your money habits is about doing small things regularly such as checking bank accounts monthly or setting up direct debits into superannuation, mortgages or investments.

“The money you don’t see is money you don’t miss,” he says.

“Work out the small things and the big things will take care of themselves.”

DO ONE THING, WELL

Financial goals can be about stopping something rather than starting something, Catt says.

“It may be stopping spending on Uber Eats or something else you see when you look at your costs,” he says.

“Have an accountability partner, for example a friend, and put the goal on your fridge to make it public.

Don’t let your 2024 financial dreams fall by the wayside. Picture: iStock

“Do things that are realistic – people can beat themselves up over this stuff. Don’t try to do seven things at once. Do one, but do it well.”

Founder of The Women’s Money Project, Virginia Baker-Woolf, says the first step is to set goals that motivate and inspire you.

“Goals are simply the work you do to get to where you want to go in life,” she says.

“They are summed up in the actions you take every day to get closer to your dreams.”

Baker-Woolf says many people set new year resolutions then fail because they were not inspired by their goal.

“If they don’t provide joy or excitement in some way, it’s a good idea to look back on why you wanted to accomplish them in the first place,” she says.

Grit, rather than talent or luck, makes a huge difference as it determines what goes through our heads when we fall down, Baker-Woolf says.

SMART GOALS

Make goals specific, meaningful, achievable, realistic and time-bound, she says.

“Break your goals down into smaller, more manageable chunks that allow you to obtain your bigger goal easily.

“Set long-term goals but use short-term goals and benchmarks to keep you on track and obtain your long-term goals. How do you eat an elephant? One steak at a time.”

Baker-Woolf says people should create a road map to their goal, including timing and details, and accept there will be changes and setbacks.

“Expect that you will fall off the wagon,” she says.

Virginia Baker-Woolf, founder of The Women's Money Project

Catapult Wealth director Tony Catt

“Don’t dwell on your mistakes. Take the learning and move on.”

Tribeca Financial CEO Ryan Watson says goals are only as strong as the habitual changes people put in place.

“Great intent and energy needs to be matched by the structural changes in your life that will help make the changes when life inevitably gets busy or motivations starts to wane,” he says.

Watson says people should review ongoing expenses and look for savings in each one.

“For every dollar you save, it could add up to two dollars that you don’t have to earn,” he says.

“Rewards along the way are important – it can’t all just be about delayed gratification.

“If you have a mortgage and it has been in place for more than 12 months, contact your bank and challenge them to provide you with a sharper interest rate. This will save you thousands of dollars in after tax money.”

GOAL SETTING TIPS

• Make your financial goals achievable. Start with smaller goals and then build up to bigger ones.

• Have a structure in place to help, such as bank accounts.

• Practice “conscious spending” until it becomes a habit.

• Set goals that are important to you. This will create the right level of emotional attachment to achieve them.

Source: Tribeca Financial