Set financially fit goals

We all are unique, are in different situations and have different aspirations / goals in life. It doesn’t matter what your goal is, but you need to have a goal. Without having a goal, you

will float through life with no purpose. Goals give purpose. Goals give direction. Goals motivate you to thrive instead of just surviving.

First of all, set your financial goals in a way that is SMART:

  • Specific – define your goal clearly.
  • Measurable – set smaller milestones that can be measured.
  • Achievable – dream big but be realistic. Your goal must be achievable to keep you motivated.
  • Relevant – it should be relevant to you. Your personal financial goal should be something that inspires you.
  • Timelines – establish when you want to achieve what.

If you write your goals down, it creates a sense of responsibility and you will be more likely to achieve it.

Analyse your current state

To achieve your financial goals, it is equally important to analyse and understand your current financial status.

Ask yourself these questions:

  • What is my net worth (assets less liabilities)?
  • What is my financial freedom number?
  • How much is my monthly income?
  • How much are my monthly expenses?
  • How much debt do I have, and what are the interest rates and repayment periods?
  • How much do I have available as an emergency fund and how much should I have?
  • How much investments do I have, what are the interest rates and how liquid are the investments?
  • How much do I currently have in my retirement fund and how much do I need at retirement age to retire comfortably?
  • Do I have adequate life, disability and dread disease cover?
  • What does my medical aid cover?

Write all the numbers down to obtain an overall picture of your current financial status. Spend time getting to know these numbers and identify some gaps to work on.

Compile your plan                

To progress from your current financial status to where you want to be, you need a detailed plan. When compiling your plan:

  • Be realistic;
  • Do it in detail;
  • Set timeframes;
  • Include calculations; and
  • Break it up into smaller milestones.

Once you have a plan written down, you are set to achieve your financial goal.

Take action

As with anything else in life, you need to take action to make it happen. Without taking action, your goal remains a dream. Without changing your current actions, you won’t get a different result.

You need to make an effort to put your financial plan into action. It starts with a choice and only you can make that choice.

Start small but start. Once you have started, it quickly becomes a habit and becomes easier. Take action to make your financial goal your reality or else it will remain a dream only. You will not regret it. Visualise your financial future, knowing that nothing is impossible if you set your mind to it and take action steps to achieve it.

This article contains extracts from the book ‘Financially Fit and Wealthy’. To learn more about the book – click here

To download your FREE Financial Goalsetting workbook – click here

We offer a R300 discount on both our Effective Budgeting and Master Investments 101 online courses to celebrate Money Smart Week South Africa. Offer expires 31 March 2021.

Effective Budgeting online course:

Master Investments 101 online course: