Achieving a financial goal is something we are all capable of, but the journey can be a daunting one. Alexander Forbes’ Research and Product Development Specialists, Michael Kirkpatrick and Bradly Drury, have some practical advice to help you structure that ladder to reaching your goals.
With 2016 underway, we all have goals which we are working towards, debt we want to pay off or perhaps a holiday experience to look forward to.
Achieving a goal comes with strict financial planning, and according to Alexander Forbes’ Research and Product Development Specialists, Michael Kirkpatrick and Bradly Drury, the ability to realise your goals is dependent on four main steps.
- Quantify your goals
- Rank your goals
- Have a budget
- Keep track
Firstly, Kirkpatrick points out the importance of quantifying your goals. In other words, it is important to attach a value to the goal, this helps your understanding of what you are striving towards. Furthermore, he states that in seeking to assign a worth, “Professional advice gives intelligence to how you quantify your goals and what you need to save on a monthly basis to reach your set goals”.
Secondly, it is important to be realistic and rank your goals. You need to prioritize on the goals that are reasonably achievable. This is important as it will help with the elimination process of goals not reasonably within your means. Drury adds that “Your priorities are completely personal and subjective”. In other words, they depend on the individual’s personal life circumstances.
Of utmost importance is to have a budget. Your budget, will either help or hinder you in reaching your goals. According to Kirkpatrick, “Your availability of resources is the driver”, highlighting the fact that you cannot achieve if you do not have the means to do so. Your carefully constructed budget will not only act as a visual for what is readily available to spend, but also indicate how much has already been spent and on what exactly it was spent.
Consistency is key, therefore keep track to help solidify the above three steps. Keeping track will encourage reflection, helping you determine whether your current financial plan is reaping any success. Drury concludes that, it is at this point that a financial advisor will be most beneficial as they will carefully assess and more easily discover where adjustments should be made to help salvage your goals.
With decline and uncertainty currently looming in the South African economy, be sure to not let it stand in the way of achieving your goals. In following the above steps and seeking out an accredited financial advisor, you will soon be ready to realise your financial dreams.