In the words of entrepreneur Jim Rohn, “if you go to work on your goals, your goals will go to work on you”. Goals take you closer to what you want in life and where you want to go and most importantly they offer choice. Setting goals and developing your financial strategy now gives you that choice and a good place to start is by working out what your personal goals are.

So ask yourself

• Does your life plan include a hoard of kids and a big rambling family home?
• Do you want to spend the bulk of your life travelling or taking time out at relaxing retreats developing your inner fabulousness?
• Do you want to be self-employed?
• Do you envisage a long retirement working on your golfing handicap?

The next step is to work out what you’re worth

Your net worth is your present wealth, which is the difference between your assets and liabilities. Do you have enough assets to pay for your expenses if, for some reason, you had to stop work tomorrow?

A liability is money you owe for things like:

• your education loan
• a personal loan
• a home mortgage
• a car loan
• credit card balances
• outstanding bills or laybys
• child support.

An asset is a possession that generally increases in value or provides a return like:

• a savings account
• superannuation
• shares or managed funds
• property.

Now work out your time horizon.

Short term

This includes paying for your favourite shoes, iPods, martinis or manicures, plus making sure you have enough set aside for the unexpected, like hospital bills or your best friend’s wedding in Europe.

Medium term

This includes saving for a deposit on a home or car, paying for education, supporting children, travel or healthcare.

Long term

Long-term strategies make sure you have sufficient funds set aside to keep you in the style to which you have become accustomed for the many years of your retirement.

Things you can start doing now to achieve your financial goals:

• Start saving now and often for your retirement.
• If you are already a saver become an investor and increase your wealth.
• Don’t be afraid of making investment mistakes – and learn from them.
• Take some risk in your investment portfolio, but do so carefully and with good research.
• See a financial planner.