Are you a goal setter? It almost seems cliché, but without specific goals that you can reach, you won’t get anywhere financially. With the Olympics still going, we can’t help but draw parallels between the drive of our Olympians and those who really succeed financially.
If there is one thing which ties all our Olympians together, it is the idea that to succeed you first need the desire to win. By having the desire to come first, to get that gold, they know who they have to beat, the times they have to get, and the records they have to break. It is only by having those goals that they can actually reach and beat them, and from a look at the record breaking medal count, it seems pretty fair to say that we are doing a fine job of hitting our targets.
We can apply that lesson to everything in life. If you want something badly, you don’t just do little bits and pieces, knowing that eventually you’ll probably hit your target. You make the sacrifices you need to make to get to where you want to go, and when it comes time to reap the rewards, you do so knowing that you gave it your all to get to where you want.
If you set yourself the goal for running a marathon without stopping, and you really wanted to achieve that goal, what would you give up? How much effort would you go to, to make sure you could hit that goal?
Now apply that same logic to saving for your own home.
How much effort do you actually put into building up your savings? How much work do you put into improving your finances?
Shockingly, the answer nationwide is not a lot. Even though the median disposable income per week is $998, we only save around half that figure, $427. While that might not be so bad, it only exists because we were scared into it by the GFC. Our savings got hit hard, and only those who were diligent survived relatively unscathed. But here today, people are saving and yet home ownership is at an all-time low.
Understandably it’s difficult to get into the market. Affordability is low, and many individuals report getting close to having a deposit, only to have prices jump and their saving efforts extended out even longer. When it comes down to it though, people who are diligent with their savings will always be in a better financial situation than those who aren’t, and it all comes down to having a set goal.
When I was 18 I decided that I wanted to start saving for a house. I was adamant that I had to hit this figure, it was all that I wanted to achieve with my money, everything else was secondary. I stopped going out for lunch on work days, I didn’t buy any new clothing and I reduced my nights out. I made sacrifices, so that I could get into property.
What did I get for my hard work?
I hit my goal with a year to spare, using the money I saved during that last year to treat myself to a holiday, with still some cash left over to pay off a nice chunk from my new mortgage. At the end of the day, if you want to afford something, then you work to get to that goal just as hard as our Olympians have worked for theirs. Saving might seem hard on the surface, but it all comes down to having some structure and maintaining it.
If you need some help setting yourself up with a goal for the future, be sure to get in touch.