Santa has a list, do you?

As the festive season is fast approaching, it had me thinking about the things we tend to look forward at this time of year: catching up with family and friends, gift giving, eating, drinking, being merry. These moments bring joy but they also come with a cost.

My Mother has always loved Christmas, and when I was younger, I remember her using a Christmas Club Savings account. Not dissimilar to the reward savings accounts the banks have these days, you put a bit of money away each month to get a bonus rate of interest and this account was designed to be accessed around the festive season so she could really spoil everyone.

I often have discussions with clients about ‘discretionary’ and ‘non-discretionary’ spending. I’m personally not in favour of making that distinction. I believe all spending is to some extent non-discretionary. We must spend money to keep a roof over our head, or food on the table, but equally important in life is having fun, experiences, and bringing joy to others.

There are obviously limiting factors to what level of spending can be achieved, and that’s where good budgeting and planning comes in. My role as a Financial Planner is to help clients balance short-term needs and wants with long-term aspirations. This means setting ambitious goals, prioritising them, and actively tracking progress.

Flexibility is the key. Goals should be reviewed regularly because life changes. There will be times where goals might not be achieved to their full extent, but that’s why we start with aspirational goals, even falling short will be better than not trying at all. The real risk is drifting towards ambiguous goals and achieving suboptimal outcomes.

Equally important is celebrating milestones achieved along the way. The clarity, peace of mind and relief that you are working towards your goals are powerful motivators.

Incremental changes implemented early, combined with the power of compounding, can have a dramatic effect over time. Whether it’s saving for a Christmas celebration, a dream holiday on the Ghan, or a comfortable retirement, is the first and most important step is setting clear goals.

Book a confidential consultation with a Hood Sweeney Securities* Financial Planner today.

Author: Daman Arthur (Representative of Hood Sweeney Securities AFS Licence No. 220897) is a Senior Financial Planner | Strategy & Investments.

The information in this article contains general advice and is provided by Hood Sweeney Securities Pty Ltd AFSL 220897. This article has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. Please refer to our FSG (available at https://www.hoodsweeney.com.au...) for contact information and information about remuneration and associations with product issuers