Goals vs strategy – what’s the difference?

January has come and gone, and with it, many resolutions are likely to have fallen by the wayside. How often do we set ourselves goals only to find we don’t actually achieve them?

As we approach the second anniversary of the first Covid lockdown, many of us have re-evaluated our priorities, building a different picture of how we want our lives to look like in five or ten years, particularly when it comes to creating a better work-life balance and improving your overall well-being.

Whether your goal is to retire early, travel the world, buy a new home or simply have more free time with your loved ones, you need to consider: does this fit in with your family? Is it financially viable? What am I willing to give up?

Heading in a new direction is easier said than done. Bearing these questions in mind, it is critical to develop a strategy – or stepping stones – to arrive at a new destination.

Goals and strategies are not the same

It’s important to make the distinction that a goal is not a strategy. A goal is an outcome that you want to achieve whilst a strategy is made up of targeted steps you need to arrive at that goal. If you’ve been setting yourself the same goal for several years without making it a reality, the chances are you’ve only set a goal and not determined the strategy.

Finances are part of your strategy

More often than not, a goal is accompanied by financial considerations. This is where the value of a coherent financial plan becomes apparent.

As lifestyle financial planners, it’s our job to understand your goals and help you build a financial plan to underpin what you want to achieve. With a clear picture of your current and future financial circumstances, you can make informed decisions about how to make your goals a reality.

How do we go about this? With our WealthPlan™ methodology, we encourage our clients to take a step back and rethink how they approach their finances by putting their goals and vision first. It’s a unique ‘you first, money second’ approach.

In the initial stage, we help you understand the cost of your current lifestyle so you can save, and spend, more strategically.

Alongside this, we distil what is important to you and your family, building a clear picture of how you wish to live. This informs the thinking behind your financial plan.

Thanks to our accurate lifetime cashflow modelling software, we calculate your current and future income and assets value, along with any “what if” scenarios, to help you make confident decisions about your lifestyle. Lastly, we look at whatever risk you could be facing and put in place security (such as life insurance or trust funds) to remove any worry and stress.

Ongoing, we help you track your progress to ensure your financial arrangements are in tune with your goals, which means you’re much more likely to make your goals a reality.

Ready to start using your wealth more strategically?

Get in touch to arrange a no-obligation 20-minute consultation with a member of our financial planning team. We’ll be happy to help you realise your goal. Call us on 0161 5467452 or email theteam@xentum.co.uk