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This
booklet gives information of a general nature and is not intended
to be relied on by readers as advice in any particular matter.
We
suggest you consult your financial planner on how this information
may apply to your own circumstances.
Other
formats
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WHY BUDGET?
If you don't know where you're going, it's impossible
to get there! Setting personal financial goals gives you
something to work towards.
Goals can be for any amount
or purpose. This might include saving for a new television,
school fees for your children, unexpected utility bills
or a deposit for a new home. They are also likely to be
for different timeframes. You might be saving for a holiday
later in the year or trying to put more away for your
retirement in twenty years. |
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WHAT WE SAVE FOR...
Here
are some of the most common medium and long-term goals
- Deposit
for a home
- Clearing
credit card debt
- Personal computer
- A
comfortable retirement
- School/
university fees
- Car
- Holiday
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Timeframe
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Examples
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| Short-term |
Less
than 1 year |
Holiday |
| Medium-term |
| Long-term |
Sometimes
working out what it is you are striving for can be the hardest
step, particularly if you lead a busy life. Try to set aside
some time specifically for this purpose. If you have a partner,
doing this together will help you agree on your goals and also
means you are more likely to both be working towards the same
ends.
There is skill in setting clear goals that keep you motivated. Vague or overly ambitious estimates of what you would like to achieve are likely to lead to procrastination and failure to attain your true goals. Using the SMART principles can help.
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- SPECIFIC
- Be clear and ask yourself what, why and how.
- MEASURABLE
- Establish criteria for measuring progress toward each goal.
- ACHIEVABLE
- Make them realistic given your current situation, resources and time available.
- RELEVANT
- Ensure they match your mission or your 'bigger' life objectives.
- TIMELY
- Set a timeframe for each goal.
Write down your goals in the table below using the SMART principles. |
| Goal |
Amount |
Date |
Savings
target per period |
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