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A dream without a plan is just a wish.

Now that you’ve thought about your ideal life, it’s time to structure your goals so your adviser – and you – can actually work toward them.

Here’s the key: not all goals are created equal. Some are urgent. Some are massive. Some are nice-to-haves. Understanding this will help you (and your adviser) prioritise.

Here’s a simple framework:

1. Short-Term Goals (0–3 years):
   • Build an emergency fund of $20,000
   • Save $10,000 for a family holiday
   • Pay off $15,000 in credit card debt
   • Set aside $5,000 for professional development
2. Medium-Term Goals (3–7 years):
   • Save $134,841 for a home deposit (the average first home buyer deposit in Australia)
   • Start a family (budget $15,000 for immediate expenses)
   • Grow a side business (invest $20,000 in equipment and marketing)
   • Pay off student loans of $30,000
3. Long-Term Goals (7+ years):
   • Build retirement savings of $1,000,000 to support a safe withdrawal rate of 4% ($40,000 annually)
   • Purchase an investment property valued at $681,467 (the median price in regional areas)
   • Establish a $50,000 education fund for children
   • Create a $100,000 legacy fund for charitable giving

And now, be specific:

• How much? (e.g., $134,841 home deposit)
• When? (e.g., in 4 years)
• Why? (e.g., so my monthly housing costs become more predictable)

Bonus Tip:

Rank your goals into:

• Must-have (emergency fund, basic retirement)
• Nice-to-have (home ownership, children’s education)
• Luxury-if-possible (investment property, extended travel)

This helps when resources are limited-as they always are!

This week’s small challenge:

List your top 5 financial goals.

Categorise them as short, medium, or long term.

Add realistic amounts and timelines, using the figures we’ve shared as a starting point, but personalising to your income and circumstances.

For example, if you earn the average Australian full-time salary of about $100,017, and can save 20% annually, you might need about 10 years to save for that median-priced home deposit.

Next week, we’ll show you how to future-proof your plan – because life never goes exactly as planned. Meanwhile, if you have any questions please feel free to contact us.