Context & Problem

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Many Australians set financial goals at New Year or after a big life change. But according to Money Smart, most people abandon them within weeks. Why? Because the goals are too vague, too ambitious, or not tracked.

Without a clear reason and a way to measure progress, it’s easy to lose motivation. And when life throws curveballs—like rising costs, interest rate hikes or unexpected bills—the goals we set without structure tend to fall apart.

The good news? A little planning upfront can make your financial goals far more likely to succeed.

1. Use the SMART goal method

SMART stands for:

• Specific–What exactly do you want to achieve?
• Measurable–How will you track progress?
• Achievable–Is it realistic based on your income and expenses?
• Relevant–Does it align with your personal values or needs?
• Time-bound–When do you want to reach it?

Example:

• Instead of “I want to save more,” try:
• I want to save $5,000 to do an educational course in 12 months by setting aside $100 per week.”

2. Break goals into timeframes

Think about your goals across three horizons:

Step-by-step example:

• Short-term(0–2years): e.g. pay off credit card, build emergency fund
• Medium-term(2–5years): e.g. save for a car, take a holiday, upskill
• Long-term(5+ years): e.g. own a home, retire comfortably, support children’s education

Each type of goal serves a purpose. Short-term goals keep you motivated, while long-term goals build your future.

3. Automate where possible

Set up automatic transfers into savings or investment accounts before you spend it. Even small amounts can add up

• Saving $50 a week = $2,600 a year
• Saving $100 a week = $5,200 a year

Automation removes the temptation to spend and builds consistency. Set regular dates in your diary to update someone close to you about your progress like a parent, mentor or very best friend. It’s your goal and up to you to be honest with it.

4. Use simple tools to track progress

You don’t need fancy software—a notepad, spreadsheet or free app can do the job. Just a separate bankcard is usually the easiest. Track:

• How much you’ve saved or paid off

What’s left to go

• Any road blocks (like extra bills)

Seeing the numbers change helps you stay on track, especially if you are sharing your progress with someone important to you.

5. Adjust as needed—without guilt

Life changes. If a goal no longer fits your situation, tweak it rather than abandoning it. For example, if you lose income, reduce your saving rate rather than stopping completely.

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“ I ’ m not earning enough to set goals.

Even small amounts count. A $10 weekly saving goal is still a goal—and builds the habit

What if I don ’ t hit the goal on time?

It’s OK to miss a target. Adjust the timeline or the amount. Progress still matters.

Should I focus on debt or saving first?

In many cases, high-interest debt (like credit cards) should be the top priority. But building a small emergency buffer can help avoid going further into debt.

Do I need financial advice to set goals?

Not necessarily. But if you have complex needs—like investing, tax planning or retirement strategy—professional help can make a big difference.