Sticking to financial goals isn't always easy.
Recent research released by The Australian Securities and Investment Commission (ASIC) has found that only around 1-in-8 people in Australia who set financial goals are actually able to persist with them.
The most common financial goals include Increasing savings (67%), spending less on non-essential items (55%), Creating or updating a budget (43%), Investing more (37%) and paying off debts (33%).
There is a generational divide amongst those who set financial goals as well, with Gen Z (77%) most likely to plan to set financial resolutions or goals, followed by Millennials (60%), Gen X (51%) and Baby Boomers (35%).
This is likely due to the current generational wealth gap that exists in Australia.
Gen Y have a household net worth of A$268,800 - less than half that of the Gen Xs who are just a decade older.
The highest net worth generation in Australia are Baby Boomers aged 55-64 who have a net wealth almost 5 times that of the generation of their children (Gen Y) and they also have a decade or more of earnings and wealth accumulating ahead of them.
4-in-5 people anticipate that they will face challenges when trying to stick to their monetary goals, including financial constraints (56%), lack of motivation (30%), lack of knowledge (24%) and lack of time (24%).
With Gen Z (89%) and Millennials (86%) more likely than older Australians to anticipate those challenges.
ASIC has created their Moneystart to support Australian consumers and investors by providing free, non-biased financial literacy tools and resources.
Since launching in 2011, Moneystart has over 11 million Australians visit the website each year.
Around this time of year is when most people set their financial new years resolutions and experts have urged people to utilise the tool to improve their saving habits.
ASIC Commissioner Alan Kirkland said ‘Plenty of people start the new year with the best of financial intentions, be it a goal to save more, start investing or pay off debt. As the summer holidays draw to a close it can be hard to stay on track without a plan.”
Dr Angel Zhong Professor of Finance at RMIT University says people should reflect on their financial journey over the past year to identify what was successful and setting goals to work towards in the coming year.
‘Grasping your financial situation is the initial step towards making positive changes. Whether you're building an emergency fund, paying off debt, or starting an investment portfolio, it's crucial to set goals that match your unique financial circumstances,’ Dr Zhong said.