Let’s face it, the ‘new year, new you’ mantra doesn’t ….just apply to gym memberships and wardrobe reorganising; it’s prime time to get those family finances whipped into shape too.
So, how about giving 2025 a big, warm welcome with some rock-solid money goals?
Here’s a no-nonsense guide to setting family financial goals.
Give Your Finances a Check-Up
Start by knowing where you’re at. It might not be pretty, but it’s crucial.
Gather all your bills and bank statements. What’s coming in? What’s going out? Are there any surprise expenses lurking around the corner? A financial health check-up will help set the scene for goals that are realistic—and actually achievable!
Dream Big (but be realistic)
Alright, now it’s time to decide what you want to save for. Keep it simple. Think about short-term, mid-term, and long-term goals. Maybe you want to save for a family holiday or a home deposit. Perhaps you’d like to pay down debt or start an investment portfolio. These goals don’t have to be fancy or overwhelming; just make sure they fit into your lifestyle and are easy enough to commit to.
Start an Emergency Fund
We all know that life throws curveballs when you least expect it. (Hello, car breakdowns and lost teeth). That’s why an emergency fund should be non-negotiable. Aim to tuck away three to six months’ worth of essential expenses for those “just-in-case” moments. You don’t want a broken washing machine eating up your holiday fund, right?
Keep It Real with a Flexible Budget
When it comes to budgeting, think realistic, not restrictive. A budget that feels too tight can be hard to stick to, so make sure it aligns with your lifestyle and allows for a little flexibility. Start by setting up a simple spreadsheet or explore online budgeting tools that make tracking expenses easy and visually clear. Remember, budgets aren’t set in stone; you can revisit and adjust them as needed. Aim for a budget that balances your financial goals with everyday life, so that it’s sustainable and keeps you motivated to stay on track.
Automate Your Savings
Set it and forget it! The best way to stay consistent is to automate a portion of your income straight into savings. And no, not the account you dip into for coffee and movie tickets; put it somewhere out of reach, like a dedicated savings or high-interest account that doesn’t come with a tempting debit card attached.
Make It a Family Affair
Getting the whole family involved in saving makes financial goals more meaningful and achievable.
Consider setting a shared family goal, like saving for a holiday or a fun outing, and make it something everyone can look forward to. Kids can also learn about money management through family discussions on budgeting and saving, helping them feel more connected to the goal. By working toward something together, everyone can play a part, stay motivated, and appreciate the value of saving toward a meaningful reward.
Celebrate the Wins
When you reach a financial milestone, celebrate in ways that don’t involve spending. For example, plan a fun family day at the beach or a nearby park, have a movie night at home with everyone’s favourite films, or enjoy a “no chores” day where everyone gets to relax. Small rewards like these make hitting your goals feel even better and keep everyone motivated for the next milestone. Celebrating non-monetary wins can be just as enjoyable and reinforces the value of saving without impacting your budget.
This year, set the family up for success with these easy, manageable goals. It doesn’t have to be a year of extreme cutbacks; just a thoughtful approach to money that lets you enjoy life a little, keep some savings for security and start building the future you want. Here’s to a bright and financially secure 2025!
Jo and Carl Violeta are self-confessed numbers nerds, parents of an energetic toddler and a super switched-on teenager, and co-founders of the award-winning business, Violeta Finance. They are a husband and wife team who are passionate about empowering their community with financial education, love the odd glass of wine, and get a kick out of helping families achieve their homeownership and financial dreams.
www.violetafinance.com.au