6 hacks to make your financial resolutions last the distance

Author: ME

Published at: 6/21/2016 3:29:02 PM

 

6 Hacks To Make Your Financial Resolutions

 

Australians love New Year resolutions but our plans to lose weight, get fit, save more or spend less often fail to make it past Australia Day.

 

This year take a different tack. Try our 6 steps to turn your resolutions into reality.

 

1 Less is more

 

It’s easy to overload yourself with goals but it’s a recipe for failure. In our busy lives we can only achieve so much. Hone in on what matters and limit yourself to one, maybe two, core goals.

 

2 Make goals achievable

 

 

We’d all like to have the body of a supermodel, the sex appeal of a rock star and the wealth of a business tycoon. But realistically, for most of us it’s not going to happen.

 

That’s why the key word for financial goals is ‘achievable’. Setting realistic goals ensures your resolutions won’t end up a pipedream.

 

3 Break it down

 

We’re getting down to the nitty gritty now. This is where you work out how you’re going to make those resolutions a reality.

 

Let’s say your goal is to have $5,000 in savings by the end of the year. Sounds big but break it down into baby steps – you’ll need to tuck about $96 each week into a high interest savings account to reach your target. Much easier.

 

Deconstructing goals into bite-sized chunks lets you know what action is needed to sail past the finish post.

 

If yours is a savings goal, use our savings calculator to get a handle on the numbers.

 

4 Set road maps (not road blocks)

 

Establish the pace needed to meet your goals by deciding how far you’d like to be along the road to success at various stages of the journey.

Setting milestones lets you see how far you’ve come, and that can be inspiration to keep forging ahead.

 

5 Celebrate small successes

 

With your road map in place you are in a position to reward progress.

 

Keep the rewards relevant to your core goal. If you’ve been whittling away credit card debt for instance, treat yourself to a special lunch (paid with cash of course). Or, if you’re saving for a first home, take a visit a display home centre to check out the latest interior design trends. It can keep your motivation pumping to reach the next milestone.

 

6 Make it effortless

 

A journey of a thousand miles may start with a single step but it’s going to be whole lot easier if you’re wearing a comfortable pair of joggers.

 

It’s the same with financial resolutions. They’re a lot easier to stick with when you take a few ‘cheat’ steps at the outset.

 

If you’re aiming to save a first home deposit set up an automatic transfer out of your everyday account and into a high interest savings account. Time it with each payday so the cash is always available, then walk away. Presto! You’re on your way to building a first home deposit. No further effort required.

 

 

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