Financial goals vary. They might include saving for a deposit, taking an extended holiday, investing in a second property, or establishing a share portfolio – while we all have financial goals that we want to achieve, the difference between thinking about what they are and seeing them to fruition comes down to whether or not you have a successful and executable strategic plan.
The key to creating a robust and effective financial plan is to first understand the back story regarding why most plans fail. To consider the common pitfalls to implementing habits for a resilient future, our team has outlined some simple steps and processes to implement that can help you realise your goals this year.
Pitfalls of Financial Planning
• Big dreams, little specificity
While we might want to retire early, buy a second home or take an extended vacation, plans without specific, clear and time bound goals are often hard to implement. By setting clear deadlines, you are able to stay on track, build motivation, and feel more rewarded that the effort you put in is helping you achieve your goals.
• Dream up plans in your imagination but set them in reality
From cruising down the Banks of the River Seine in Paris, to buying your dream house, when setting your goals consider other factors that may affect your ability to achieve them, and account for unplanned challenges. By taking these potential impediments into account from the start, you are more likely to achieve your goals and have realistic expectations about when they are likely to occur.
• Plan, pivot, adapt, repeat.
Plans inevitably change due to personal or external factors. The ability to recognise the need to adapt and account for change is crucial to keep your goal within your line of sight. Not only will this improve your emotional ability to adjust to change, but may help you anticipate workarounds for potential challenges.
The paraphrased quote from Benjamin Franklin is “failure to plan is planning to fail” and this logic can be applied to financial planning. Create a plan, make it realistic, allow it to be flexible, and enjoy working towards a well-deserved goal.
If you need expert advice and support to outline your goals and create a strategic plan that’s feasible for your life stage and circumstance, contact our team by emailing info@locumsgroup.com.au
