The Goal Planning Process – Using your ‘Why’
In our last blog post we talked about ‘What’s Important to You – Finding Your Why’.
Now we help put this into perspective to show what short, medium and long-term goal planning might look like, using a specific ‘value’ as an example.
Let’s say you’re a travel enthusiast and now post-pandemic, your travel dreams are finally finding their way back on your agenda! You’ve prioritised your values and, Adventure and Exploration (valuing new experiences, travel, and stepping out of your comfort zone to explore the world), are at the top of the list!
At this point, you may want to download our free goal planning timeline we use with clients to jot your own ideas down should inspiration strike!
With thoughtful planning, setting financial goals that align with the Adventure and Exploration values, may look like this:
Short-term - Take a Weekend Getaway
Choose a Destination: Decide on your preferred weekend destination and research the costs involved, such as accommodation options, meals, activities, fuel etc.
Set a Budget: Based on the above and the options you choose, determine a realistic budget.
Calculate the Required Savings: Estimate the total amount you need to save, based on the budget you’ve set in step 2. Let’s say it’s $1500.
Establish a Timeline: Work out when you’d like to travel. Let’s say in 3 months’ time.
Monthly Saving Target: Divide the total savings amount by the number of months you've allocated to reach your goal. Base this on your pay cycle eg: if you get paid fortnightly, you will need to save $250/fortnight for three months.
Create a Travel Savings Account: Separate savings accounts for separate goals is a great way to stay on track, particularly if you can automate it!
Thoughtful planning means setting financial goals that align with your values.
Photo cred: unsplash.com/@blakewisz
Medium-term - Plan for an Overseas Trip
Using the above steps, planning for an overseas trip may look like this:
Choose an International Destination: Select a specific international destination that you would like to visit. Consider factors such as culture, attractions, peak holiday times and weather.
Research Costs: Determine the approximate costs involved, including airfares, accommodation, car hire, tours, local transportation, meals, activities, and travel insurance (very important!)
Set a Budget: Establish a budget based on your destination and the duration of your trip. Consider all expenses, both expected and unexpected, to ensure you have a realistic budget. Let’s say $12,000 for a two-week trip to Europe.
Determine the Timeframe: It could be a year or more, depending on your financial situation and the complexity of the trip.
Monthly Saving Target: In this example, you plan to travel in 12 months. You would need to set aside $1000/month to reach the $12,000 goal.
Automate it!
Setting specific goals that are in harmony with your values increases the likelihood of achieving them.
Photo cred: unsplash.com/@joohny
Long-term - Create a Travel Fund for Future Adventures
Setting a long-term financial goal related to travel involves creating a travel fund to support future adventures. Here's how you can approach it:
Determine the desired travel fund amount: Decide on the amount you’d like to save. This could be a significant sum that allows for multiple trips or a specific travel-related milestone you want to achieve.
Set a Timeframe: Determine the timeframe to achieve your long-term travel fund goal. This can vary depending on your financial capacity and travel aspirations.
Calculate Regular & Consistent Contributions: Divide the total savings amount by the number of months you've allocated to reach your goal. For example, if you want to save $30,000 for your travel fund in five years, you will need to set aside $500 per month (or $6000/year).
Choose a long-term savings account option. This could be a high interest savings account or if retirement is on the near horizon, contributing more to your super is a great long-term savings strategy. Seek professional financial advice to determine the best long-term savings account option for you.
By taking the time to understand and prioritize your goals, you can develop a realistic and actionable goal setting plan for the year or years ahead.
Setting specific goals that are in harmony with your values increases the likelihood of achieving them, and having a financial advisor by your side means you’ll have someone to monitor your progress, keep you on track and provide guidance along the way!
If you’re interested in taking control of your financial future and want to ensure your goals are purposeful and meaningful, it’s worth getting in touch with our Sound Life team. Jump on a free half-hour discovery call to see if we can help you to achieve financial fulfilment.
The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.