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Whether you’re looking at buying a home, saving for something special, or wanting to retire comfortably, financial planning goals can help you get there.
But it's easy to get caught up with trying to manage your daily bills and expenses and lose focus of the big picture. Setting goals can give you the direction and motivation you need to put money aside. This guide will show you how. We'll cover:
Long-term financial goals examples
A financial goal is something you want to achieve with your money. Normally a specific and measurable milestone.
Financial goals can be short-term, like saving for a holiday, or long-term, which can take 5 or more years to achieve. Long-term financial goals need more time, money and planning to achieve. This can guide your saving and investing strategy and keep you on track.
HSBC’s Money Mentality study found that 8% of Australians have zero savings and 17% do not have any financial goals. The top goals for those who did are:
“As housing affordability remains relatively unattainable for most Australians, especially young people, saving for a holiday or buying a small luxury item may be more attainable in the short term and allows people to live in the moment.”- Jessica Power, Head of International Wealth and Premier Banking for HSBC Australia
Setting long-term financial goals can help you turn your dreams into reality. Here are some examples to get you started:
There are obvious benefits to setting a long-term financial goal, but there are also a few challenges to consider.
Pros
Cons
The sooner you start, the easier it is to set up and achieve your financial goals. Here are 4 steps to get going.
Think about what you want your future to look like. So if you want to buy a house, picture what it will look like and where it is. Or if you want to retire early, imagine what you’ll be doing with your free time and how you’ll be enjoying your flexible lifestyle.
Having a clear picture of what you want to achieve makes it easier to stay focused.
Explore: How to save for a house deposit
Instead of just having a goal like “save for retirement”, make it more definite. “Save $2 million by the age of 60” or something like that. Work out what you want to achieve, how much you need, and when you need it by.
Breaking big goals into smaller milestones can also give you something to celebrate along the way.
Our savings goal calculator can give you a realistic idea and timeframe.
A budget can help you manage your money and get a good sense of what’s coming in and going out of your accounts. Check your spending to see where you can save more or cut back.
Set up an automatic transfer to put money into a savings or investment account every time you get paid. Make sure you build your financial goal into your budget, so you pay yourself first.
Read: How to save money
If you have a goal that’s 5 years or more away, investing can help you reach it. Time in the market can also help smooth out market fluctuations. Consider options like managed funds, exchange-traded funds, or buying shares. Bear in mind that all investments go up and down so there may be risks.
It’s also wise to have an emergency fund to cover 3 to 6 months of expenses, in case something unexpected happens.
If you want to start investing, HSBC WorldTrader gives you access to over 30 markets and 80 exchanges through the HSBC Australia Mobile Banking app and in HSBC Online Banking.
Access more asset classes in more markets, and enjoy competitive brokerage fees.
Setting and working towards your financial goals takes planning as well as patience. Having a clear plan to start with, taking regular action, and being disciplined means you can start building the future you want.
If you need extra help, speak to us.
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