Achieving goals: It’s a marathon, not a sprint

Iwant to run a marathon this year – the New York City Marathon, to be precise. I haven’t run one before – I have two kids, several businesses to run and an intense job – so it might sound like the kind of wishful thinking that New Year resolutions are renowned for.

But it’s not a resolution – they’re usually abandoned by now anyway (the 19th of January to be precise).

It’s a goal, and I’ll be applying many of the same methods that I apply to helping my clients achieve their financial goals.

Whether it’s buying a first home, repaying the mortgage, preparing for retirement, or growing wealth – or if it’s a financial goal that’s less about dollars and cents and more about wellbeing, such as not fighting with your spouse about finances – it’s not the goal that gets it done.

By all means, make the goal SMART (specific, measurable, achievable, relevant and timely) and all that, but it’s the system you apply that will get you there.

As James Clear, the best-selling author of Atomic Habits, says: ‘‘You don’t rise to the level of your goals; you fall to the level of your systems.’’

So here are some of my tips for nailing your financial goals this year.

Make it a goal that excites you, but factor in some self-awareness

Understand what’s possible based on where you’re starting from and the opportunities and obstacles that are unique to you.

That will involve a bit of personal analysis – don’t set yourself up for disappointment by aiming to become Elon Musk levels of wealthy by Christmas.

That self-awareness should also factor in your own tendencies, so you can get them working for and not against you.

I know my tendency is to be an ‘‘obliger’’, meaning I default to prioritising external expectations over internal, so I know I need a trainer because accountability works for me. I know my tendency is to be a shopper, so my financial goals need to be exciting enough to make sacrifice worth it.

I also know I’m time-poor, so understanding what actions will create the most impact is crucial.

Focus on the foundations

I’m not going to go out running in my flip-flops. I’ve got good shoes, and I’m working on recruiting the right muscles (glutes, I’m looking at you).

With your finances, that approach might look like getting good advice, the right tools for the job, or getting rid of inefficient debt or investments that are no longer fit for purpose.

A financial plan is crucial

Having a goal but not a plan is like knowing the destination but having no idea how to get there.

The plan has to consider everything – the time that’s available, the income required, fixed expenses, the milestones that need to be hit, the strategy that suits best.

It also needs to be adaptable, so you don’t give up in the first week that things don’t go to plan.

Track your progress

You always need to know if you’re on target or whether you need to make changes to get back on track.

This needs to feed back into the financial plan, so you know your options if your trajectory indicates you need to make up ground.

Automate what you can

Our willpower is a muscle that gets fatigued, so I always think it’s worth automating the outcome you’re after. That could look like automating how the money flows to reduce the chances of overspending, or so that a savings investment target is prioritised.

It could be as simple as setting up direct debits so that you always get the prompt payment discount.

Consider what you don’t want to happen, too

If you were on a diet, you wouldn’t fill the fridge with chocolate. The same thing applies to your finances.

That might be as basic as not having your credit card pre-saved in your internet browser (especially if your tendency is to be a shopper).

Pace yourself

You want a sense of urgency in your progress, especially while the headlines scream at you about impending recession.

But you also don’t want to run out of steam or resort to shortcuts (such as get-rich-quick ‘‘investments’’) that you don’t have the financial resilience or risk tolerance for and which inevitably leave you poorer and further away from your goal.

Introduce accountability

Generally, I’d advise against making that person your spouse – there are too many emotional undercurrents going on there. It needs to be someone you’re willing to take critique and direction from.

Commit to the bounce-back

Most of us let perfection stand in the way of progress.

If nothing goes wrong, we are fine. But if life throws us something unexpected, we sabotage our own efforts by jumping off the wagon before we fall from it.

I do it with exercise and diet; most of my clients do it with money. Life can upset any financial plan – the key is to course-correct and refocus on what you can control.

Remove the emotion where you can

Sentimentality can make us want to hang onto an investment for the wrong reasons.

Panic can make us choose the wrong option.

Fear can stop us taking bold actions – or even stop us from taking the very first step.

And one thing is for sure, you definitely don’t get to the finish line if you’re not brave enough to start.