20
February
2018

Short-term and ongoing goals

Short-term and ongoing goals are important too!

Financial planning in general focusses on the long-term and most of our strategies are developed to produce outcomes well into the future. What is often forgotten is the here and now!

It is really important to focus on living an enjoyable life on an ongoing basis as well ensuring a bright future. Furthermore, by not planning the short-term goals, we can make financial decisions that negatively impact our future as well as hindering the present - we lose twice!

Seemingly counter-intuitively, focussing on the ongoing lifestyle you would like to live and planning accordingly is an excellent way to also set up your long-term goals. Identifying the things most important to you on a daily, weekly and monthly basis and allocating money and time to these can lead to you reduce spending on things that add little or no value to your life. This will allow you to release funds that can be used for longer term goals.

At Future Financial Services we have a tool that we call the “Good Month Matrix” which helps our clients to develop a structure for their spending. The Matrix asks the clients to identify 3-5 things they like to do every day, every week and once or twice a month. 

These activities can be big or small; if it is important to the client it is important. If the client gets satisfaction from the activity, it is time and money well spent. The theory being, that if you are doing the things most important to you on a daily, weekly and monthly basis; it is likely that you are having a pretty good life. 

Furthermore, it is likely that most clients will realise that they are spending money on things completely unrelated to the activities they have identified that they value most.  In many cases this will provide an opportunity to adjust their ongoing spending and free up cashflow for short and medium-term goals.

In my experience, lack of planning for short-term goals leads to one of two things, the goals never happening, or the clients funding the goal through the use of debt. Worst of all, it is usually funded via a credit card, with high interest rates.  This unfortunately results in future income being used to repay past goals.

If you are able to identify the short-term goals, work out the cost and save in advance, you are more likely to achieve these goals and won’t be wasting income on interest payments.

A focus on your ongoing goals will result in you having a much higher standard of living both now and in the future.  Isn’t that the aim of the game?

Author; Alex McKenzie Categories: Author

About the Author

Alex McKenzie

Alex McKenzie

Owner at Future Financial Services

Past:

  • Paraplanner at Zammit Partners Investments
  • Unit Trust Administrator at Colonial First State

Education

  • University of Western Sydney
  • Penrith High

About

As a Financial Planner I help people to achieve what they would like in life. This involves helping you to identify the things in life they would like , developing plans to help achieve them and strategies to protect what you already have. We do this by providing Financial Advice to guide you through your life stages.

The financial planning process involves determining a clients current situation and financial objectives and tailoring strategies to assist in best achieving those objectives.

I am an expert in superannuation, investments and insurance, these are tools we use to help you achieve your goals.

I aim to use my knowledge of superannuation, taxation and Centrelink to efficiently use your assets and income to achieve your financial goals.

Retirement and pre-retirement planning, wealth creation, asset protection, insurance planning and estate planning are all areas of advice that I provide.

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