✨Making Money Work For You: Goals, Timeframes, Investments ✨

Ever found yourself staring at investment options, feeling like you're reading a foreign language? You are successful in your career, managing teams or running your business with confidence, yet this financial stuff makes you want to hide under the covers. Trust me, you're not alone.

I see it every day in my practice – capable, intelligent people who somehow feel like imposters or hopeless when it comes to their money. There is that nagging worry about making the "wrong" choice. The fear of getting it wrong sabotaging their financial future. And there is that little voice saying you’re no good with money, if you should have figured all this out years ago, blah, blah, blah. I have one of those too!

Here's the good news - you don't need to become a financial guru or be a math genius to make smart choices. What you need is aligning what matters to you, when you need it, and how your money is working for you. It's like matching the right tool to the right job, except we're matching your hard-earned money to your actual life goals. Your dreams.

When your investments align with your personal timeline and goals, something remarkable happens. The anxiety that used to accompany thoughts about money begins to fade. You start feeling more confident, not because you suddenly understand all the jargon, but because your money has purpose and direction that makes sense to YOU and you trust the decisions you make.

Remember if it is not 100% Yes, it’s a No. 

Understanding Your "Why" Before Your "What"

Money without meaning is just numbers. Let us start with what you actually care about.

Write down 3-5 things you want your money to do for you (e.g., comfortable retirement, helping children, travel, career change).  Then rank your goals by emotional importance, 1 for the most important through to 5 for lesser importance.

Ask the Why questions.  Let’s say you want to travel? When you have reached the target amount of money for your trip [to London/Paris/Bali] how will you feel.  How will your life be different? 

There are no wrong answers here – your goals are uniquely yours, and that's exactly as it should be."

The Timeframe Sort

 Next to each goal, write "soon" (0-2 years), "middle" (2-10 years), or "later" (10+ years). This simple act begins creating the framework for which investments belong where.

Goal	Timeframe	Your goal	Your investment
Emergency	Immediate	‘Ooops’ account	Savings accts CMT
Short term	Up to 2 years	Pay out credit card Trip to Bali	Automate from your Working acct How much?  Utilise your SMART goals to establish how much Savings accts or CMT
Medium term	2 to 10 years	Deposit your first home or an investment property.  Start Investment portfolio	Managed Funds, ETF *In certain scenarios use a Term Deposit Index Fund (Start these with as little as $50)
Long term	10 years +	Pay out mortgage Retirement	Superannuation Investment Portfolio Investment Bond

 One little step; Pick ONE goal from your list that makes you feel something when you think about it. Now, set up an automated transfer of even $50 a month to a designated account for that specific purpose. Label the account with your goal. There's something almost magical about seeing "Bali" or "Freedom Fund" grow with each passing month!

 Creating Alignment

A coaching client experience in creating alignment; Together, we mapped her goals to appropriate timelines and investment options. When we finished, She sat back and said, "For the first time, I can see how it all fits together. Each goal has its own path and timeline."

Boom, she got it!! I love it when this happens. Aha moment, when the penny drops 💥 

Timeframes Do Matter - Short, Medium & Long-Term Horizons

Your money needs different instructions depending on when you'll need it. You will more than likely see different parameters for ‘timeframes’ depending on who you are following, reading or listening to. These are mine.

• Short-term goals (0-2 years):  like emergency funds, holidays, home renovations
• Medium-term goals (2-10 years):  like property deposits, education funds, career breaks
• Long-term goals (10+ years):  like retirement, helping kids, long-term wealth building, philanthropy

Asking your money to grow significantly in 6 months is like expecting a seedling to become a tree overnight. Different timeframes require different approaches.

Now it is time to categorise the goals you wrote down earlier into ‘timeframes’.

Investment options Simplified

You don't need to understand every detail of how a TV works to watch a TV. Similarly, let's focus on what you actually need to know.

Short-term

Cash and cash equivalents:  This is simply money in the bank – savings accounts, term deposits, or cash management accounts. Keeping your money in a safe place where you can reach it easily.

Typical returns: Currently 3-5% per annum, but this fluctuates with interest rates.

Best for: Money you might need quickly or goals within the next 1-2 years. This is your "sleep well at night" money – your emergency fund, upcoming holiday, or that kitchen renovation you are planning for next summer.

The trade-off: While your money is secure and accessible, inflation can gradually erode its purchasing power over longer periods. Remember what you paid for a coffee in 1990?

Fixed interest/bonds: Think of these as loans you make to governments or companies, who pay you regular interest in return.

Typical returns: Generally 3-7% per annum, depending on the type and risk level.

Best for: Goals in the 2-5 year range, or as part of a diversified strategy for longer-term goals. This might be saving for a house deposit, planning for a career sabbatical, or setting aside funds for your grandchildren education expenses.

The trade-off: You'll typically earn more than cash, but less than growth assets like shares over the long term. There's also the risk that rising inflation and interest rates can impact returns.

Medium-term

Property investments: This includes direct property (buying an investment property yourself) or indirect property (investing in property funds or trusts).

Typical returns: Historically around 5-8% per annum from rental income plus potential capital growth over time.

Best for: Medium to longer-term goals (7+ years) as property can be costly to buy and sell. This might support goals like boosting retirement funds or building generational wealth.

The trade-off: Property can provide strong returns and a tangible asset, but requires significant capital to start, can be illiquid (you can’t sell of a bathroom if you need some cash), and comes with ongoing costs.

Shares/equities When you buy shares, you're purchasing a small ownership stake in a company.

Typical returns: Historically around 7-10% per annum over the very long term, but with significant year-to-year fluctuations.

Best for: Long-term goals (10+ years) where you have time to ride out market fluctuations. Think retirement planning, long-term wealth building, or future financial independence.

The trade-off: While shares have typically outperformed other asset classes over long periods, they come with higher volatility – your investment value can rise and fall significantly in the short term.

Managed Funds and ETFs (Exchange Traded Funds)

Rather than picking individual investments yourself, these options pool your money with other investors and have professionals make the investment decisions.

Typical returns: Varies widely depending on what the fund invests in – could be similar to cash rates or to share market returns.

Best for: Any timeline, depending on the type of fund. They're particularly valuable for busy professionals who don't have the time or interest to select individual investments.

The benefit: Instant diversification (not putting all your eggs in one basket) and professional management without needing to become an expert yourself

Two considerations.

1. The risk-return relationship: 

The risk-return relationship refers to the principle that potential returns on an investment are related to the amount of risk you are is willing to take. Generally, higher potential returns mean higher levels of risk. Meaning there is a greater chance of losing some the invested amount in the short term. On the other hand, lower potential returns typically involve lower risk, with more stability and predictability in the investment's performance. This relationship guides you in making decisions based on your risk tolerance and aligned financial goals.

There are Risk Profiling questionnaires in abundance online. When it comes to your risk tolerance only you can answer this question.

2. Accessibility factor: How easily you can access your money with each option and why it matters. Matching your investment choice around when you will need access to the money.  How quickly can you get your money.

Remember!

Remember, the most important thing is to get started. Even small changes can make a big difference in your financial well-being.

Financial confidence comes from alignment, not from trying to predict markets or timing investments perfectly.  Every step you take toward aligning your goals, timeframe and investments puts you more in control of your financial future. It takes courage to embrace self-responsibility and face financial decisions. The more you put this process into practice, the easier it will become and the more you generate self-trust. 

Your Next Step 

·         Immediate action step: Take 30 minutes today to write down your top three financial goals and when you need to achieve them. Just this simple act starts the alignment process.

·         My support: If you would like help creating your personalised alignment strategy, I'm here to guide you through the process in a judgment-free space. Remember, you don't have to figure this out alone.

One decision, one account, one automation at a time – that's how alignment happens.

Enjoy!

Jan