A dream without a plan is just a wish.
Now that you’ve thought about your ideal life, it’s time to structure your goals so your adviser – and you – can actually work toward them.
Here’s the key: not all goals are created equal. Some are urgent. Some are massive. Some are nice-to-haves. Understanding this will help you (and your adviser) prioritise.
Here’s a simple framework:
- Short-Term Goals (0–3 years):
- Build an emergency fund of $20,000
- Save $10,000 for a family holiday
- Pay off $15,000 in credit card debt
- Set aside $5,000 for professional development
- Medium-Term Goals (3–7 years):
- Save $134,841 for a home deposit (the average first home buyer deposit in Australia)
- Start a family (budget $15,000 for immediate expenses)
- Grow a side business (invest $20,000 in equipment and marketing)
- Pay off student loans of $30,000
- Long-Term Goals (7+ years):
- Build retirement savings of $1,000,000 to support a safe withdrawal rate of 4% ($40,000 annually)
- Purchase an investment property valued at $681,467 (the median price in regional areas)
- Establish a $50,000 education fund for children
- Create a $100,000 legacy fund for charitable giving
And now, be specific:
- How much? (e.g., $134,841 home deposit)
- When? (e.g., in 4 years)
- Why? (e.g., so my monthly housing costs become more predictable)
Bonus Tip:
Rank your goals into:
- Must-have (emergency fund, basic retirement)
- Nice-to-have (home ownership, children’s education)
- Luxury-if-possible (investment property, extended travel)
This helps when resources are limited-as they always are!
This week’s small challenge:
List your top 5 financial goals.
Categorise them as short, medium, or long term.
Add realistic amounts and timelines, using the figures we’ve shared as a starting point, but personalising to your income and circumstances.
For example, if you earn the average Australian full-time salary of about $100,017, and can save 20% annually, you might need about 10 years to save for that median-priced home deposit.
Next week, we’ll show you how to future-proof your plan – because life never goes exactly as planned. Meanwhile, if you have any questions please feel free to contact us.