June is upon us. We’re halfway done. Believe it or not, the last six months are behind us and you may or may not be happy with what you’ve achieved vs what you set out to achieve. If not, we totally get it. You see, the thing is, January is probably not the best time to be making realistic New Year’s Resolutions. We’re full of food, engaged in a hedonistic existence of parties, too much or too little sleep, and a general lack of routine and self-discipline. If you’re ready to focus on generating wealth then it’s time to set some serious finance goals.
The temporary departure from our usual daily grind fills us with a sense of whimsy, hope and optimism. All great things, don’t get us wrong, but possibly not the optimal state of mind for realistic goal setting. Or maybe you like to keep things loose in the goal department, wise to the feeling of disappointment when things don’t eventuate as you had hoped.
Good news guys. Now is the time to reset and have another crack, with the benefit of knowing how the rest of the year might pan out in terms of things you can leverage – a little reverse goal setting engineering if you will. Use the month of June as a way to reflect and move forward with intention.
If, like many others, your goal is to save money – it’s helpful to have a specific target in mind. Data from 2016 suggests that 85% of people wanting to save money have a target, the average amount being $11, 234.
The reasons people want to save vary, but the top 3 include holidays, rainy day funds, and buying or renovating a home. Other reasons include to build wealth for retirement, pay off debts, setting up a budget, investing in shares or buying investment property.
So where does it all start to unravel? ASIC cites the top reasons that people break financial resolutions as:
- unexpected expenses or change in financial circumstances
- lack of willpower
- the original goal being unattainable.
With this knowledge in mind, you might wonder how you can avoid the same fate and become a successful saver. Here’s a number of tips and tricks that people use to reach their savings goals:
- Transfer surplus fund to a savings account on a regular/set basis
- Set up auto transfers to a savings account
- Keep savings in an account they can’t touch; and
- Depositing funds into a home loan offset account.
From our point of view, existing homeowners would do well to revisit their home loans on a regular or semi-regular basis as an excellent way of saving. Refinancing can be an easy way to save, allowing you to redistribute your savings towards other goals.
As usual, if you want to know more about how we can help you achieve your financial goals, please get in touch now.
Sources:
Westpac, Financial fitness a top priority in 2016; Australians pledge to save $21 billion (January 2016)
ME Bank, Saving for a holiday or car are the top financial goals for 2017 (December 2016).
- All lending subject to status and lenders criteria. Terms & conditions apply. This document contains general information only. Your own personal circumstances have not been considered and you should seek independent financial advice prior to making any decision on a financial product
