Setting a goal is essential in shifting the way you think about your disposable income. Whether it's setting a goal to save, to reduce spending or to more effectively use your financial resources, once you set a specific goal it’s easier to map out how you’ll achieve it.
There’s a couple of benefits to this approach. First of all, having a goal actually makes you feel like you’re in control and gives you a greater sense of perspective. Conversely, inadequate planning can lead to stress, with budget being one of the top stressors for Australians.
In setting your goal, the next thing you should do, is spend time clarifying why you want to achieve it. Ask yourself, "Why do I want this holiday/new car/to buy a house in the suburbs?" Is it that you want to travel to a bucket list destination and learn more about a culture? Is it that a new car will be a symbol of your hard work and effort? Is buying a house a way of providing security for your family in a suburb where you want to live?
Placing the importance on the ‘why’ instead of the monetary value actually makes the process of achieving your goal more meaningful and increases your motivation and drive to accomplish it.