Don't dream it. Do it! How to reach your financial goals.

What does financial success look like for you? Everyone has different hopes and dreams, but one thing shared by every individual goal is the need for a plan to make it happen. Whether you’re looking to save for an overseas holiday next year or you’re working towards a retirement free of money worries, making a financial plan is an important step in the right direction.

Don’t dream it. Do it.

Having a financial plan is just like having a good map when you’re planning a journey. It not only pinpoints your ultimate destination, it shows you the best way to get there. Your financial plan can include any number of goals, some bigger, some smaller, short term or longer.

Some goals to aim for could include:

• Saving and investing to paying for children’s education.

• Enjoying a “once in a lifetime” travel experience.

• Having the funds to travel regularly.

• Upgrading the family car on a regular basis.

• Taking a year off work to start a family or see the world.

• Changing from full time to part time work.

• Saving a deposit to buy a home.

• Ensuring the family can always be financially protected.

• Retiring at a certain time with a certain income.

• Generating a particular level of income.

• Passing family wealth and assets to future generations

Planning is specifically about you

We all have a general idea about what we’re working towards and what we want in our lives. Having a documented plan, however, with specific goals within specific time frames can help make those things happen.

“Retiring comfortably” is another goal most of us share. But what is “comfortable”? For some, an after-tax income of $25,000 would do it, while others might want $60,000 each year. Perhaps your family may have a history of longevity and you’re aiming to live to a hundred. In this case, planning to have enough money to see you through what could be decades of retirement is essential.

SMART thinking for your financial goals

SMART goals provide a useful framework for setting out goals that are:

• Specific - well defined with clear objectives.

• Measurable - achievable goals with the ability to track your progress to success.

• Agreed upon - all people contributing to success agree on what you are setting out to achieve.

• Realistic - ensure your available resources will help set you up for success.

• Time-based - realistic time frames to enable you to achieve your goals.

When it comes to your SMART goals, don’t underestimate the power of positive thinking. A positive focus on the outcome will help keep you in the right mindset to affirm your commitment to your goals and make them happen.

Planning, priorities and realities

It’s important to remember that you may need to be prepared to adjust your plans or make some compromises along the way.

When you are listing out your goals and their time frames, think about which ones are most important to you and where you may be prepared to be more flexible in terms of timings or financial amounts. For example, if you can’t retire with the income you’d like at a certain age, would you be prepared to work a little longer? Could you get by on a lower income? Or do you need to change your plans to save a little extra somewhere else?

Your goals and plans should be reviewed on a regular basis. A change in your personal situation such as a new baby or divorce, a pay rise at work or even an inheritance could all impact your plans and your priorities.