How to Set Financial Goals for the New Year

As the year draws to a close, many of us reflect on the past 12 months and set resolutions for the year ahead. But let’s face it – flimsy resolutions like “save more” or “spend less” often fall by the wayside by February. Instead, why not focus on creating well-rounded, actionable financial goals that set you up for long-term success?

At FMS Group, we know the power of clear financial goals paired with expert guidance. Let’s explore how you can make a fresh financial start and how a trusted financial advisor can help you stick to your plans.

Why Resolutions Often Fail

Resolutions like “get my finances sorted” are often too vague to be effective. Without a specific plan, it’s easy to lose focus and revert to old habits. A well-rounded financial goal is specific, measurable, achievable, relevant, and time-bound.

For example, instead of saying, “I’ll save more,” try: “I’ll save $10,000 by December 2025 by cutting discretionary expenses and contributing $200 per fortnight to a high-interest savings account.”

Creating Well-Rounded Financial Goals

A strong financial plan includes short-term, medium-term, and long-term goals.

Start by reviewing your current financial situation. Understand your income, savings, and debt. Check your progress with superannuation contributions and identify areas where you might be overspending.

Having a mix of goals ensures your financial plan is balanced and adaptable.

Short-term goals might include building an emergency fund or reducing credit card debt.
Medium-term goals could involve saving for a home deposit or planning a family holiday.
Long-term goals may focus on retirement planning, growing investments, or paying off a mortgage.

Your financial goals should also reflect your life priorities. For instance, if you want more time with family, plan for a flexible work schedule or save for shared experiences.

Goal setting is most effective when it follows a structured framework. The SMART framework is one of the most widely recognised methods for setting clear and actionable goals. It ensures goals are:

Specific: Clearly define what you want to achieve.
- Example: “Save $10,000” instead of “Save more money.”
Measurable: Set criteria to track progress and know when you’ve achieved it.
- Example: “Contribute $200 to savings every fortnight.”
Achievable: Ensure the goal is realistic given your resources and constraints.
- Example: “Reduce discretionary spending to free up savings.”
Relevant: Align the goal with your broader objectives and priorities.
- Example: “Build an emergency fund to feel financially secure.”
Time-bound: Set a deadline to create urgency and focus.
- Example: “Reach $10,000 by December 2025.”

SMART goals are particularly effective for financial planning because they help break down complex aspirations into actionable steps.

How a Financial Advisor Can Help

A good financial advisor isn’t just about numbers – it’s about understanding your dreams and helping you create a practical plan to achieve them. Their aim is to make sure your financial goals align with your personal vision.

A financial advisor brings expert guidance, navigating the complexities of tax laws, superannuation rules, and investment opportunities. They help tailor a plan to your unique circumstances and aspirations. An advisor also provides accountability and support, ensuring you stay on track and adapt strategies as needed.

Tips for Sticking to Your Financial Goals in 2025

Automating savings can make the process effortless. Set up direct deposits to savings or investment accounts. Celebrate milestones like paying off debt or reaching a savings goal. Regularly review your progress and adjust strategies as needed, whether on your own or with the help of a financial advisor.

Make 2025 Your Best Financial Year Yet

At FMS Group, we’re passionate about helping clients on the Central Coast and Sydney’s North Shore turn financial aspirations into reality. Whether you’re planning for retirement, building wealth, or simply looking to get organised, our team is here to guide you every step of the way.

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