How to set money goals like a financial planner does

Fact Checked
Updated 04/01/2023
How to set money goals like a financial planner does

It's never too late to start making plans to secure your future.

Time to read : 3 Minutes

How To Set Money Goals Like A Financial Planner Does

People get a personal trainer, they get meals delivered but when it comes to financial advice, they get shy.

As a financial advisor, I want to normalise talking about your money and life goals because that is how you make them a reality.

🗓️ And, there is no time like the present.

Here are my top 10 finance tips for 2023

  1. Talk about your money – getting ahead comes down to being financially literate. If you don't discuss, read and understand how money works then you are already behind. Almost two thirds of Aussies cannot answer five basic financial questions.

  2. Check your fees – read the fine print and know how much your accounts cost you – do you know what the tally of your super fund fees are? If not, now is a good time to check that you are not paying more than you need too. After all every dollar out of your super reduces your compound interest power.

  3. Start an emergency fund – don't put it off. Having enough money in the bank if you get sick, or something goes wrong is never a bad idea. It is recommended that you have three to six months of salary set aside. So if you are on the average Aussie income one $92K a year, that means you should have about $17K put aside. Don't worry if you don't yet, but work towards it. Maybe start with just aiming for a week or $1454 and then keep building.

  4. Pay off your debt – or at the very least pay more than the minimum. Debt, particularly bad debt is a bit like a terrible hangover it affects everything – your credit rating, your ability to borrow and your ability to buy. If you are overwhelmed by how much you owe, you can also look at consolidating your debt into a loan with lower interest rate payments or transfer to 12-24 month free credit card whilst you pay it down.

  5. Setting savings goals – here's the thing, saving just doesn't happen on its own. It requires diligence, discipline and a plan. Work out how much you want to save and what you want to save for and then break it down into manageable bits – e.g. saving for a home deposit of $80K would take you four years if you put aside $420 a week.

  6. Be on the best rate – paying interest is not paying off your home, so every little .01% could be adding thousands to your mortgage each year. Shop around, know how much you are on and know which rates are competitive.

  7. Get coveredincome protection and health/life/trauma insurance are all important support systems to understand and consider, especially if you have a family to consider. I can't tell you how many times I have spoken to clients who are so grateful they planned for the worst. You never need it till you need it, right?

  8. Live on less than you earn – and oldie but a proper goodie. You can't get ahead if you are spending more than you are making. And though it is tempting to spend more each time you get a pay rise it is better to invest or save that extra amount, same with any bonuses or unexpected windfalls you might get.

  9. Treat yourself – have you heard of the 50, 30, 20 rule? It normally goes like this – you spend 50% of your income on your essential costs, 30% on you and 20% on savings. I like to split it slight differently, 50% same (essentials), 35% savings and 15% on you. If your take home is $1300 a week then $650 on essentials, $455 savings and $195 on you.

  10. Plan for the future – the retirement age might keep getting moved but at some point in your life you are likely to want to stop working. When that happens you will want a comfortable life, and planning for that starts today. There are a few factors to consider here – 1. What kind of retirement you want and how much you'll need for it. 2. Where will you live, it's much easier if you own your home when your retire. 3. Your nest egg that will provide for emergencies and plans. This is unique to everyone but it's worthwhile starting to think about it today.

The bottom line

As a financial planner, I am human too.

I don't always make the right choices but I know my comfortable financial future begins today.

🌈 And, if I break it down into small manageable steps even the biggest goals become possible.

The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions.


About the author
author Lisa Varker

Compare Club Life Insurance & Income Protection Specialist

Lisa was literally born into a family of life insurance experts. After fourteen years as a financial advisor, and now partner in Life Insurance at Compare Club, she loves working with clients from all walks of life. Lisa also loves animals and has a number of cats, dogs, fish, and a snake. Who doesn’t? Lisa enjoys gardening, partying with her friends and is a devoted mum to Kyla and Loki.

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