Setting a savings goal can be challenging when there’s just one person involved, so how to tackle it for the whole family? Doing so over wine or a coffee is always a great start. Here are our top tips to assist in the conversation.
Decide who your family includes
This might sound obvious but put some thought to who your family includes. You might have a couple of kids and a fur baby, but do they really need to be involved in these decisions? Use your best judgement here. Older kids may relish the challenge of saving for a family holiday and it can also instill some great attitudes towards money. Your four year old may not be on the same page…
Order your priorities
Having a clear idea of what you are saving for and the importance of that goal is most important. Write a wish list (don’t hold back!) of all the things you wish to save for. Then, with your family members, order the list into highest priority. This is where some healthy debate can start – it’s important to keep an open mind and be aware that not every family member will have the same priorities. You may want a new car, your significant other may want a trip to Thailand. This is where an impartial person – like your adviser – can help you navigate through this discussion.
Break down your goals
Once your priorities are decided, break your top 3-5 goals down into smaller components. For example, if you want to reduce your home loan by $20,000 in the next 12 months, break that into $5,000 components. Targeting an extra $5,000 over three months is easier to grapple with than $20,000 in 12 months. Having checkpoints throughout the year also keeps the goal top of mind.
You have to celebrate those wins – big or small! Enjoying the process along the way is definitely part of it, but ensuring you are celebrating your milestones is key. If your savings goal is a holiday then your celebration is evident. If, however, you are saving for something intangible, get creative and set your mini rewards up with your key milestones.
Keep each other accountable
The power of saving towards a shared goal is accountability – but you need to use this in a positive way. Rather than shaming partners or family members for a small slip up, encourage each other to stay the course with positive reminders. Did anyone say dream board?! It might sounds a bit pinterest-y, but visualising what you are trying to achieve really does help!
Here at PW we love goals and helping people achieve them is our jam.
Have a chat to one of our advisers about your 2019 plans here