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Depending on the situation, you might get some of your ex partner’s super, or they may get some of yours. See what you need to know. A divorce from your husband or wife, or a separation from your de facto, could mean a division of your assets and debts, whether they’re held individually or together, and superannuation is no exception. The agreement or decision to split super is part of the overall settlement process, which will consider all of the assets and liabilities of a couple. Even if one of you hasn’t contributed to super for a long time, that person could still be entitled to a percentage of the other’s super. Below we explain a few things you may want to know, noting that if you’re a de facto couple living in Western Australia, different rules may apply, as you’re not subject to the same superannuation splitting laws. How is super split in a divorce or separation? There are several ways superannuation can be split. A super agreement can be put in place before, during or after your relationship, as part of a broader binding financial agreement, which can specify how super is to be split upon separation or divorce. If you don’t have a binding financial agreement in place but have agreed how you’d like your super to be split, an Application for Consent Orders can be filed in court, without your attendance, to formalise the arrangement you’ve both come to. If you can’t reach an agreement, you may instead consider applying for financial orders, where a court hearing will determine how super is to be split between the two of you, noting there are time limits in place to do this. What’s involved in the process? You may need to get information regarding the value of the super money that could be split between you. You can do this via your or your ex’s super fund, provided the request is for purposes related to the separation. To get this information, you’ll need to provide various forms to the super fund, which you can locate in the Federal Circuit and Family Court of Australia’s Superannuation Information Kit. Once the super splitting order is made, whether by consent or after a court hearing, you’ll also need to provide a copy of the order to the super fund for it to be effective. Depending on the situation, if you want to defer making a decision around how super is to be split, or if you have an older style fund where splitting is not available until you’re eligible to start taking the benefit, you could establish a ‘flagging agreement’ where the super fund is unable to pay out super until the flag is lifted. What potential costs might you come across? Super funds may charge an administration fee for carrying out any requests around splitting super. These are separate to any costs for legal or financial advice, or court fees. With that in mind, it’s worth checking what the super fund may charge for things like: an application for information a super split implementing a flagging agreement lifting a flagging agreement. When will the money be paid? Because there are rules around when super can be accessed, be aware that splitting super won’t necessarily result in an immediate cash payout, as super is treated differently to other assets and debts. So, after the agreed amount has been transferred to your or your ex-partner’s super account, the money must remain there until a condition of release is satisfied. What that means is, generally, you can’t access super until you’ve reached your preservation age (which will be between 55 and 60, depending on when you were born) and you retire. What other things should you consider? Some couples choose to leave their super untouched. Instead, they factor in the value of their super accounts while dividing up their other assets. With that in mind, it’s worth knowing the details of all your financial accounts, including your super, noting many Aussies have more than one super account. You can search for lost or unclaimed super by doing a super search with your current super fund or by logging into your MyGov account. Where can you go if you need more help? Working out what you’re entitled to can be complicated which is why it may be a good idea to get independent legal advice, even if things are amicable. You might also think about consulting with your accountant or financial adviser. Source: AMP

There are a number of ways you can contribute more to your super, to take advantage of time and the magic of compound interest. These include salary sacrificing, and a range of tax-deductible, spouse and downsizer contributions, as well as government co-contributions. What you do right now affects how well you can live in future. So, before you decide to gift your future self, think carefully about the right course for you. If you’re thinking about making extra contributions towards your retirement, make sure you’re across the super contribution rules. For instance, if you go over the super contribution limits, additional tax and penalties may apply. Remember that the value of your investment in super can go up and down. Before making extra contributions, make sure you understand and are comfortable with any potential risks. The government sets general rules about when you can access your super, which means you typically won’t be able to access your super until you retire. If you’re over 65 and making contributions, you generally need to satisfy work test requirements and be under age 75. Extra contributions may also affect any rainy day savings you set aside for emergencies, so do your homework before you commit to your future self. If you’re in a position to engage professional help, you might also talk to a financial adviser about what’s right for you. The not-so-silly season Many of the presents we buy for ourselves and loved ones date quickly – that new smartphone isn’t new for long. Increasing retirement contributions may delay gratification but pay dividends down the line. If you have some years to go before you retire, you may even be able to retire sooner if you increase your contributions now. That gift of time might be the biggest reward of all. Source: AMP

In terms of gender equality, we’ve come a long way over the past few decades. Australian homes and workplaces are very different places than they were in previous generations. But there’s still a long way to go. When it comes to superannuation there isn’t a level playing field for Australian men and women. Before we look at the gender super gap it’s worth looking at the gender pay gap. In May 2021, women working full-time earned $1,575.50 a week on average while men earned $1,837.00 – a gap of $261.50 or 14.2% Not only do women tend to be paid less, they’re usually the main caregivers, with a staggering 93.5% of all primary carer leave taken by women. In 2018-19, among parents of children aged five and under, only 64.2% of women were in the labour force, compared with 94.6% of men. And women can suffer long-term financial effects from starting a family. Women with a child aged two or younger in 2001 experienced an average 77.5% reduction in earnings over the next 15 years, compared with those without children. Men with young children on the other hand faced no significant earnings penalty. This all adds up to a significant shortfall in retirement savings. The average super balance for a 60-year-old Australian man is $198,482, compared with $165,986 for a woman. The Federal Government’s Retirement Income Review sums it up: “On average, compared with men, women have lower wages, are more likely to work part-time, take more career breaks, and experience worse financial impacts from divorce. These factors contribute to the gender gap in superannuation balances at retirement. Different strokes for different folks Of course, we’re all different and everyone’s situation is Getting your retirement plans back on track unique. There are many households in which the woman earns more and the man takes on the bulk of the domestic responsibilities. And many Australians are happily single or childfree. But the facts speak for themselves. On average, Australian women tend to earn less, spend more time out of the workforce raising a family and have less retirement savings as a result. So whatever your personal circumstances – single or partnered, kids or no kids – you could be faced with a challenge when it comes to generating enough income to enjoy a comfortable retirement, particularly if you dipped into your savings to get you through COVID as part of the Federal Government’s early release of super scheme in 2020. Getting your retirement plans back on track But all is not lost… here are five ways women – and men – can start to rebuild their super balance. Search for lost super. You may have a few old super accounts from previous jobs. Now’s the time to find them – and even look at bringing them together into one account if that’s right for you. Personal contributions. Lockdown has been tough on everyone. And if you’re suffering the financial impact of continuing restrictions, super is probably the last thing on your mind. But if like many of us you’ve given in to the occasional bit of indulgence to help you through – with spending on home improvements, online gambling and food delivery soaring during the pandemic – then there might be ways to save a bit extra. If you’re able to curb your spending a little, even a small contribution to super could make all the difference. Salary sacrifice. It might not sound too appealing but in the case of super, sacrificing can help you get ahead. Most Aussies will pay less tax on these super contributions than on their income, as well as enjoying the benefits of super’s tax-friendly environment on earnings and eventual withdrawals. Spouse contributions. If your partner earns more, they could make a contribution to your super fund and claim a tax offset of up to $540, if eligible. Low income super tax offset. If you earn $37,000 or less a year – like many women who work part time while looking after their children – and your employer makes super contributions on your behalf, the government may refund the tax paid on these contributions back into your super account, up to $500 per year. Source: AMP

Key points: 2022 is likely to be the year COVID-19 goes from being an epidemic to endemic. Expect ongoing global economic recovery, albeit with bumps along the way. The spike in inflation is partly due to pandemic driven distortions to demand and supply chains but inflation will be higher over the years ahead than it was pre-COVID. Expect the first RBA rate hike in late 2022. Shares are likely to provide good returns on a 6 to 12 month view helped by rising earnings on the back of economic recovery, but expect a more volatile and constrained ride. The year began with COVID-19 as the biggest threat to the economy and has ended the same way. Along the road there’s been plenty of highs and lows; from lockdowns and fears of inflation to the debt crisis in China spurred on by property giant Evergrande, and strong global growth. There was also the local housing boom, debate around when interest rates will start rising again and overall, strong equity markets. Throughout the year, Wall Street has provided strong returns (above 20 per cent). It was a solid year for equities in Europe. The S&P/ASX200 has been a bit more subdued, up about ten per cent. But if you add in dividends, you’re up about 15 per cent on a grossed up for franking credits basis. It wasn’t such a good year for bonds. Bond yields have increased, and that’s triggered capital losses for bonds. If you’re a typical balanced investor in a superannuation fund, then up to October you were up, on average, by 11 or 12 per cent. That’s a reasonably good year. Another factor in financial markets has been the growth of crypto currencies, which has triggered plenty of interest. Looking forward, 2022 will probably be the year when COVID-19 goes from being a pandemic to being endemic, or something we’ve learned to live with. It will be something akin to the common cold or flu, but there will be setbacks along the way. We expect ongoing economic recovery, solid growth globally in the order of five per cent, which will be a little down from this year. In Australia we are going to see good growth, particularly following the setbacks that have depressed this year relative to expectations. The current spike in inflation is a major issue and we will see ongoing pressure on central banks. We believe the Reserve Bank of Australia (RBA) will start raising rates late next year. In any case we’re still going to continue to have very low interest rates next year. In share markets, the broad trend is likely to remain positive, but we are coming into a tougher phase of the bull market. There’s going to be more volatility and more constrained returns.   COVID-19 is still high on the watch list for the share market. Inflation, supply constraints, China and elections in Australia, France and the United States are also on that list. With regards to the local election, the difference between the two major parties now is nowhere near as great as it was back in 2019 so it’s unlikely there’ll be as much riding on the result in 2022, as there was last time around. COVID-19 COVID-19 is still causing real economic consequences, even when there are no lockdowns. But the threat remains significant. People behave as if there is a lockdown and that constrains the economy. Globally the number of cases has been rising again, particularly in Europe and parts of the United States. And recently there’s been the Omicron strain. The good news in Australia is that the number of cases have come down from their highs, both in Victoria and New South Wales, but they are still lingering at reasonably elevated levels. What’s critical is the hospitalisation rate and that shows that vaccines continue to work. In Australia, 78 per cent of the total population – which includes infants and children – have had their first dose. And 73 per cent are fully vaccinated. That’s above the developed nation average and it’s still rising as other states’ vaccination rollouts catch up to the ACT, Victoria and NSW. The pandemic is not over yet, but the good news is that COVID-19 is likely to become endemic next year. Vaccines are (so far) highly effective in preventing serious illness but are less effective in preventing infection and transmission. We know efficacy against infections wanes after 4 to 6 months. People are likely to require booster shots. If the hospitalisation rates stay low, hospital systems around the world will be able to manage as re-openings continue. We still don’t know a lot about the Omicron strand of the coronavirus though doctors in southern Africa say cases are milder than Delta. The pessimistic scenario is that it’s more transmissible and turns out to be more virulent than Delta necessitating a rollout of new vaccines which will delay the recovery. The optimistic scenario is that it’s less virulent than Delta but takes over from it and squeezes that variant out of the system. If hospitalizations and deaths are kept down, then the world is on the path to living with COVID-19. We are reasonably confident that is what we are going to see next year, although Omicron and other variants could still cause bumps along the way, particularly if the pessimistic scenario unfolds. Global growth There are several reasons for optimism about good global growth over the next year. There are signs out of China about more stimulus coming, albeit slowly. Easy fiscal policy continues around the world. It’s the same story for monetary policy even though some central banks have raised rates or started to slow bond buying. There is still a lot of pent-up demand in economies. There is around $2.3 trillion of savings that have built up in the United States through the last 18 months. In Australia, accumulated savings are worth around $256bn. And of course, vaccines are working. Those factors together provide optimism about … Read more

When you’re under pressure to give that perfect present at Christmas it can be much harder to stick to a budget. Find ways to make your gift budget go further with our top tips for giving generously without going overboard on spending. Be prepared Taking time to plan how much you’ll spend on each person is a good start if you want to keep gift spending reasonable. There’s no harm in being open about this with family and friends, so nobody has to be anxious about what others might be expecting. When discussing spending limits and making things fair, it’s worth keeping in mind that everyone has differences in their income, financial commitments and number of people to buy for. So it’s not necessarily a case of agreeing on the same budget per gift for everyone. Secret Santa A Secret Santa or Kris Kringle approach to buying gifts can be the ideal way to make your budget achievable, without leaving anyone feeling like they lost out in the gift department. Agreeing a set amount for everyone to spend on a single person can work just as well for colleagues, friends and family. Be kid-wise Another approach larger families often take is to limit gift-giving to kids only. After all, they’re usually the ones who lack the spending power to buy what they want and get extra excited about the chance to receive gifts as a result. Vouchers Although some might write them off as a gift that hasn’t taken thought and effort to choose, gift vouchers can be the very best way to make sure friends and family get the gift they want. Give time Another welcome voucher could be one that offers help with something you know a friend or family member struggles to get around to. Whether it’s babysitting, a DIY project or stocking the freezer with enough meals to last a week, the promise of your time and energy can often deliver a more valuable gift without costing you a single dollar. Pre-loved Buying gifts second-hand from Gumtree, eBay or your local Facebook marketplace can be better for your wallet and the planet too. Not only does it save you money, it could also give a new home to something that would otherwise end up in landfill. Source: Money & Life

Christmas is a wonderful time of year in Australia, filled with summer foods, decorations and of course, gift giving. This year will feel even sweeter for many, as friends and family reunite for the first time in months, if not years. Here are a few ideas to help you stretch your Christmas gift budget further, so you can enjoy more family time, without the financial hangover. Buy local If you want to avoid price rises and shipping delays this silly season (not to mention helping the planet) one of the best things you can do is buy locally. By purchasing from small businesses, artisans and producers in your local area, you’ll help to create jobs and keep more of the money in your community. Local suppliers often also have different and unique products for sale that aren’t available from national chains. So look out for your local Christmas market, craft fair or farmers market, or choose gifts from a small businesses nearby. Get creative If you enjoy making things, this is for you. What could embody the spirit of giving more than creating your own beautiful handmade gifts? This is the perfect activity to do with kids (or without!). Baked goods, scrapbooks, drawings, paintings, jewellery, soaps, candles, even face masks can all be made. Not only will you save money, giving will feel more meaningful when you’ve put your own time into it. Give an experience Even better than material goods, why not give the gift of an experience? Experiences are more memorable, offering the recipients a chance to connect and enjoy themselves. The possibilities are endless, so you’re sure to find something that suits. You could go traditional with restaurant vouchers, movie tickets, zoo or aquarium passes, or more unusual, like hot air ballooning, art or cooking classes or even a weekend away. Give your time If you can’t afford an elaborate gift, you still have something everyone needs – time! Giving your time without expecting anything in return is the perfect way to embrace the spirit of the holidays. Perhaps you could gift an elderly relative with some help around the house, offer to babysit your sister’s kids for a night, finish a DIY project for your mum, or stock someone’s freezer with enough meals for a week. There are lots of thoughtful and creative options that will keep your budget intact. Make a donation If the people you love truly don’t need anything, perhaps they’d appreciate you donating a gift on their behalf to a worthwhile charity. Remember; less is more! Aussies are a generous lot, and we’re each planning to spend $726 on gifts alone this Christmas! Now we all want to give people the world, but perhaps it’s worth taking that more literally this year. In most cases, one simple gift is enough and can even be more appreciated. You’ll be doing them, the environment, and your budget a big favour. Of course, if you’d prefer to focus on spending time together rather than doing the Christmas shopping, that’s ok too! Discuss how you feel with those closest to you and let them know you’ll be prioritising time together over physical gifts. It could help you start the new year in a better financial position than ever. Source: Money and Life

Donating to a charity or cause you care about is a win-win for both you and the charity. Charities rely on the generosity of donors to help them do their work, while you get the satisfaction of supporting a worthy cause. Even better, many donations are tax-deductible, meaning they reduce your assessable income. How do I make a tax-deductible donation to charity? The ATO has rules that govern whether a donation can be claimed as a deduction on your tax return. To be eligible, your gift or donation needs to be made to a charity that has ‘deductible gift recipient’ (DGR) status. Most DGR charities will list this on their website, but you can also look it up on the Australian Business Register. In addition, it must be a donation of money or property of more than $2. That can include financial assets like shares. In some cases, there are special rules (gift conditions) that affect the types of deductible gifts the charity can receive. Always check with the charity before making a donation, especially if it’s a substantial sum. When is my donation not tax-deductible? If you receive anything in return for your donation, the ATO won’t consider it a ‘gift’ for tax purposes, meaning it’s not deductible. For example, buying raffle tickets or paying to attend a fundraising dinner. The ATO views this as an exchange of goods for money, therefore it’s not tax deductible. If you receive something small, with no monetary value as a thank you, for example a sticker, that’s ok. Keeping track of tax-deductible donations To claim a tax deduction, you need to have proof of making the donation. That can be in the form of a receipt, bank statement or other written record. Most charities will issue you with a receipt when you make a donation, although they’re not legally required to. Always ask for a receipt and save it together with your other tax-deductible receipts. You can claim donations for gifts of up to $10 without a receipt.  How do I claim my donation as a tax deduction? For gifts of money over two dollars you can claim the full amount of the donation in your tax return. Simply include your deductions in the Gifts or Donations section of your tax return. Different tax rules apply for donations of property or shares, so seek professional tax advice. How much tax could I get back? Some charities have donation calculators on their website to help you estimate your potential tax benefit, like this one from World Vision Australia. Be aware that your actual tax refund may differ from that shown, depending on your overall tax position. Always seek professional tax advice if you’re considering making a substantial donation, or looking to reduce your tax bill.  What else to consider when making a donation Do your research when choosing a charity, especially if you’re looking to make a regular or large donation. Choose a charity or cause that’s important to you and check their credentials. Look into the kind of activities they do and find out how your donation will be used. You can search the Australian Charities and Not-for-profits Commission (ACNC) register to find out more information about the charity, including financial information, a summary of activities and annual reports. Beware that scammers often pose as legitimate charities and may contact you via phone, SMS or email asking for donations. Always look up the charity on the Australian Business Register and/or the ACNC register as outlined above. Source: Money & Life  

Financial planning is something more and more people are considering as a service they need to help them get the best from their finances and focus on putting their money towards what matters to them most. In fact, according to 2020 research, 2.6 million Aussies said they intended to seek help from a financial planner over the next two years. The uncertainty of the COVID pandemic has definitely played a part in highlighting the value of financial advice. In the same survey of non-advised Australians, almost half (44%) said the COVID-19 situation had increased their likelihood of seeking advice. It’s often the case that people seek financial advice when there’s a major change in their life like buying a home, growing their family, inheriting money or retiring. But it doesn’t have to take a global crisis like Covid-19 or one of life’s upheavals for you to benefit from working out a financial plan with a qualified expert. A qualified financial planning professional can make a positive difference to your financial future at any stage in your life. Working with a financial planner isn’t just about making the most of the money you have now. It’s a chance to make the choices, for your life and finances, that will enable you to enjoy peace of mind and work towards your most important goals, starting from today. Source: Money & Life

The COVID-19 pandemic has changed many aspects of our daily lives, and romance is no exception. While lengthy separations have led some relationships to end, other couples are choosing to move in together more quickly than they might have expected. If you’re planning on living together, you might be wondering whether to merge your finances. Combining money is a big step for any couple, and not something that has to be tackled all at once. There are several ways to share money as a couple, and you might like to take it in stages. Before you merge your finances It’s important to be honest, open and transparent about your financial situation and expectations upfront. Money can become a source of tension in relationships, often due to mismatched values, poor financial habits or financial infidelity. Before merging your finances, set aside a time to talk about your current financial situation, including any debts or bad spending habits. Discuss your shared goals and vision for the future. Put a financial plan in place to help you get there. And work out which approach to sharing money will work best for both of you, so that you can set up your accounts to manage household expenses. Also keep in mind that once you’ve been living together in a relationship for a period of time, you’re considered to have a spouse for legal and financial purposes. This can have implications for your tax returns, government rebates and benefits, and, in the event of a split, can affect how your assets are divided up. Ways to share money If you’re planning on moving in together, you’ll need to work out how you’d like to pay for your household expenses. There are a few different approaches to combining money, and each has its pros and cons. Here are some ideas to help you get started: Proportional method In this approach, each member of the couple contributes to household expenses in line with what they earn. For example, if one partner earns $100,000 a year, which is 66 per cent of the household income, and the other earns $50,000, which is 33 per cent of the household income they would each contribute accordingly. That means, if the monthly bills come to $3000, then the higher earning partner pays $2000 (66 per cent), while the other partner pays $1000 (33 per cent). Pros: In this scenario, both partners spend the same percentage of their income towards bills, expenses and entertainment, while keeping what’s left over for themselves individually. That means you can both enjoy a better lifestyle than you could if you kept your money separate. It also relieves the stress of trying to keep up with a higher earning partner, or ‘budget down’ to the level of the lower earning partner. Cons: One possible drawback to this method is that the higher earning partner could start to feel resentful about contributing more, or you could get into disagreements about whether an expense should be joint, or personal. Equal shares In this system, expenses are split down the middle, regardless of who earns what. You keep the rest of your income to spend how you like. That means you’re also responsible for paying down debts you’ve racked up on your own – your finances are essentially separate. Pros: This is a great option for people who value their independence, especially in the early stages of a relationship. Neither partner feels like they are contributing too much, or being subsidised. Cons: If there’s a big disparity in incomes, this can limit your lifestyle to that of the lower earning partner. It’s also not a realistic way to manage many of life’s major events, for example, if you want to buy a home you’ll need all of your borrowing power. Or, if one partner needs to take time off work to have children, you’ll need to reassess the arrangement. Going all in Another option is to combine all of your finances. Couples who use this method only have joint bank accounts and credit cards, shared loans and so on. Each partner’s income is deposited into a joint account, and all of your household and personal expenses are paid from a joint account. Pros: Both partners have complete transparency over the household finances. It’s also simple to manage, as you don’t need to worry about splitting bills. Having an overview of your whole financial situation can also help with financial planning and money management. Cons: This approach can cause friction if your values and spending behaviour aren’t aligned. One partner can become resentful of the other’s spending, or, disagree with individual purchases they want to make. As you can see, there’s no right or wrong way for couples to share their money. The most important thing is to keep talking regularly about your finances, and review and alter your approach over time, as your needs change. Source: Money & Life

Everyone has financial goals. Maybe you want to pay off your mortgage early, stop relying on your credit cards, or go on an amazing overseas holiday (once we’re allowed to travel again). Or you might want to set up good money habits, like investing regularly or look at ways to grow your super. Whatever you want to achieve, it’s possible – as long as you approach your goals with the right mindset. There’s a lot of science behind what happens to your brain when you set goals. It can trigger new behaviours, increase your motivation and attention, and improve your self-confidence. What’s more, when you set goals that are ambitious, challenging and highly important to you, you’re much more likely to perform in a way that helps you achieve them. So, in other words, the best way to set yourself up for success is to make sure you choose the right financial goals and support them with a solid plan. Here are five steps that will help you get started. Step 1: Identify and write down your goals Goals are meaningless if they’re just vague ideas in your mind. That’s why new year resolutions always fail. Writing them down will help you focus on what you want. To make you even more accountable, share your goals with someone and update them on your progress. A 2015 study by psychologist Dr Gail Matthews showed that 76% of people who wrote down their goals and shared their progress were able to successfully achieve them, compared to a 42% success rate for people who didn’t write down or involve other people in their goals. Make a list of all the things you want to achieve financially and then prioritise them in order of their importance to you and your loved ones. You’ll find that two or three goals will stand out – they’re the ones to focus on. Step 2: Make them specific, measurable and realistic Now that you’ve decided on your goals, you need to expand on them so you know what you’re working towards. The best goals are specific, measurable and realistic. Set yourself a challenge, but don’t make your goals impossible to achieve. For example, consider this common financial goal: I want to pay off my mortgage earlier. That’s a great goal. But it doesn’t mean much if you don’t put parameters around it. Here’s a better example: I’m going to pay off my mortgage by December 2028. I will do this by paying an extra $500 each month on top of my minimum payment. This goal is much more specific, with a set deadline and regular actions you need to perform. Step 3: Have a plan Work out the actions you need to take to achieve your goals. Do you need to earn more? Spend less? Refinance your loan so you’re paying lower interest? Cut back on some non-essentials? Let’s revisit our earlier goal. We know we can achieve it by paying an extra $500 each month. But where is that money coming from, and what will you do with those extra payments? This needs to be part of your plan. For example: I’m going to pay off my mortgage by December 2028. I will do this by paying an extra $500 each month on top of my minimum payment and keeping that money in a mortgage offset account to reduce the amount of interest I pay. To ensure I have this money available each month, I will work to a monthly budget that minimises any unnecessary spending and I will increase my income by working two hours of overtime each week.  Everyone’s plan will be unique. The key is to make it relevant to your lifestyle to give yourself every chance of success. It’s also a good idea to allow for the occasional slip up in your plan. No-one is perfect. Step 4: Track your progress Big, long-term financial goals are great, but it’s easy to become overwhelmed by them. Breaking down bigger goals into smaller steps can help you track your progress and celebrate your success along the way. If you have a goal with a five-year deadline, break it down into five one-year goals. Or even monthly goals. That way you’ll know how you’re going and whether you need to make any adjustments to your behaviour. Reward yourself when you reach certain milestones – this can help keep you motivated and avoid splurging. Step 5: Revisit and refine your goals regularly No matter how determined you are to reach your financial goals, things may get in the way. You may have unexpected major expenses, or your priorities may change. That’s okay. Once you have the right behaviours and mindset of working towards a financial goal, you can adjust the goalposts whenever you need to. The process is far more important than the outcome. Along with tracking your progress and celebrating your small wins, revisit your larger financial goals regularly, Are they still your top priorities, and does your plan need to be updated? If you have a financial adviser, they can help you with this and let you know if you’re overreaching or if you could be striving for more. What financial goals do you want to work towards? Source: Colonial First State