Diana Clement: Getting serious with goals

So 2006 was the year you planned to sort out your finances? Sadly nearly half of all New Year's resolutions will have foundered by February 1. That includes financial ones.

That's because the overwhelming majority of resolutions simply aren't written down, says financial coach and mentor Anton Nadilo of Focus Financial. As a result, they don't get translated into action.

What's more, says Andrew King, president of the Auckland Property Investors Association and a property coach, even writing them down isn't enough if you haven't worked out the strategy to put them into action.

Start speaking to successful investors and one thing stands out. They set goals and plan. Take Graeme Fowler, property investor and author of New Zealand Real Estate Investors' Secrets. He sets ambitious financial goals every year and uses a series of techniques including visualisation to ensure he puts them into action.

"One of my property goals in 2005 was to buy 40 properties with a net profit or equity of $1 million," says Fowler. At the end of 2005, he had bought just 30 residential and commercial properties, but made $2 million on paper - double his goal.

"There are many ways which help people to achieve goals. Some of these are reading your goals every day, affirmations, visualising them happen, that type of thing."

Flimsy resolutions aren't enough, says Fowler. Goals should be realistic and not too way out that your subconscious will not believe them.

"Success is more than 99 per cent psychological - you need to believe in yourself, be strong, committed, focused, have integrity, most of the time do virtually the opposite of what the majority of people do. This is just to get started."

But mending your procrastinating ways doesn't come easy. Fixing your finances needs to be done in bite-sized chunks such as "I want to save $50 a week, rather than I want $2400 in the bank by the end of the year".

Not everyone can hope to make millions of dollars every year like Fowler. Some people, including high earners, just need to get their finances or financial paperwork organised.

Whatever end of the financial scale you're at, the rules for putting your goals into action are much the same. Shirley Woodrow, national president of the Federation of Family Budgeting Services, recommends
* Be realistic.
* Write your goals down.
* Keep a record of how you are going - such as checking your bank statement monthly for "affirmation".
* Document your spending - especially if you've set a resolution such as buying no more than one coffee a week.
* Find a buddy to share your progress with.

Nadilo says when choosing a buddy avoid your spouse or partner because they may be too soft or hard on you.

One step further is to pay for a professional mentoring relationship with someone who has achieved financial success. Or, if you really need a kick up the pants, sign up for coaching where you'll find yourself accountable for your lack of action at every meeting.

Coaching of course costs money. A cheaper option is to join a coaching group or course. King has recently launched property planning courses for investors who have the motivation to invest, but can't quite take the step.

Financial coach Clive Littin runs coaching groups called "The Science of Getting Rich" where he works with people to reach their financial goals. It's a sort of financial boot camp aimed at banishing procrastination.

One client, who was typical of many, said Littin, was paralysed by his fear of buying a home for his family. Thanks to the group-coaching sessions, he overcame the fear and bought a subdivisible Papatoetoe property - a promising investment.

Littin is often amazed at the number of people who come to see him and haven't a clue what their goals are. "And they're going to pay me money."

An infallible formula for those whose resolutions or goals have fallen by the wayside already is to
* Have an idea. You need to know what you want before you can get it.
* Hold on to it. Littin has his goals plastered over pictures of the Greek resort of Santorini on his walls - which reminds him that one goal for this year is to travel to Greece.
* Get support. Sign up a friend or relative to be your buddy and constant supporter, not devil's advocate.
* Watch what happens.

Other strategies when setting and implementing goals include
* Stick humble post-it notes in front of you - on the fridge, on the dashboard, on your computer.
* Set up a screensaver on your computer with your goals or motivational quotes.
* Put a monthly review reminder in your diary to analyse your progress.
* Set aside a regular time each week for financial matters and sticking to it.

Nadilo suggests producing a miniature version of your goals and laminating several copies to carry.

If you're even vaguely computer literate, then there are other tools to help you, some of them quite simple.

The Microsoft Office website has several useful personal finance tools that can be downloaded for free and used with Excel or Word. They include annual and monthly budget templates, capital gains and losses calculator, buy versus lease car calculator, credit card use worksheet, personal financial statement, and so on.

Financial planner Lisa Dudson's book Get Your Head Out of the $and has several useful templates such as a goal planner. You can download them free from her website Acumen.co.nz - even if you haven't bought the book.

Or for comprehensive personal finance software get a copy of Intuit Quicken or Microsoft Money.

Finally, if you haven't set this year's goals, here are some ideas:
* Up your regular retirement savings by 1 per cent.
* Read one financial or personal development book each month.
* Write a budget.
* Review all your insurances - life and general.
* Find a financial planner or mortgage broker and get a review.
* Pay off your highest-rate debt first.
* Increase your cashflow by 10 per cent - by getting a better job, spending less or saving on tax.