Reaching your financial goals: 3 simple tips...

Practical Advice to Build a Stronger Financial Future…

Whether you're saving for a house deposit, investing for retirement, or building a buffer for life’s curveballs, most of us have financial goals we’re striving to achieve.

The real challenge? Following through. We often start with the best intentions, but life gets busy, priorities shift, and motivation wanes.

In fact, research by ASIC’s Moneysmart found that while more than half of Australians set a financial goal for 2025, only 1 in 8 (12%) managed to stick with it.

No matter what your goal is, these simple tips can help you stay focused and make steady progress.

Tip #1: Set a SMART Goal

Vague goals like “save more” or “spend less” are easy to ignore. A SMART goal—Specific, Measurable, Achievable, Relevant, and Time-Bound—gives you a concrete target and a clear path to reach it.

Instead of saying, “I want to save for a house,” try: “I’ll save $20,000 for a house deposit by December 2026 by putting aside $300 each week.”

SMART goals help clarify your intentions and make it easier to stay on track.

Planning ahead also matters. Think about potential roadblocks—unexpected bills, social events, or seasonal expenses—and factor them into your plan.

Once your goal is set, automate your progress where possible. Set up regular transfers to your savings or investment account to make contributing effortless.

While automation can support consistency, make sure the tools you use align with your risk profile and financial goals.

Tip #2: Track Your Progress

One of the best ways to stay motivated is to regularly track your progress.

According to the American Psychological Association, people who monitor their goals—whether it's weight loss, quitting smoking, or financial savings—are significantly more likely to succeed. Frequent tracking was linked to higher success rates.

The lesson? Regular check-ins help you stay engaged, quickly identify any setbacks, and make timely adjustments.

Use whatever method suits you: a spreadsheet, a simple notebook, or an app that visualises your progress. The key is to build it into your routine.

Tip #3: Stay Flexible

Even with the best planning, life happens. You might face unexpected expenses, shifts in income, or other competing priorities.

Flexibility is essential. That might mean reducing your contributions temporarily, extending your timeline, or reassessing your approach.

What matters most is continuing to move forward—even if progress slows. Small, consistent steps still add up over time.

Rick Maggi CFP, Financial Asdvisor Perth, Westmount Financial

Israel-Iran: Here we go again...

 Overview

The Israel-Iran conflict remains limited so far, and various constraints suggest it may stay that way. Iran appears open to returning to negotiations, although the risk of escalation—and consequent threats to global oil supplies—remains significant.

Oil Prices and Petrol Impact

Oil prices have risen moderately, currently implying a 10–12 cent per litre increase in Australian petrol prices. However, if supply remains stable, prices should ease. While higher oil prices may stoke inflation, they are more likely to act as a drag on spending—effectively a “tax”—which central banks, including the RBA, are likely to look through.

Middle East Conflicts and Oil

Historically, not all conflicts in the Middle East lead to major oil price disruptions. The key variable is whether oil supplies from major producers are affected. While this latest conflict poses elevated risks, several strategic and logistical constraints may prevent serious supply disruptions.

Current Risk Dynamics

• Israel is committed to dismantling Iran’s nuclear program and possibly pursuing regime change.

• Iran may retaliate by targeting oil-producing neighbors or shipping through the Strait of Hormuz.

• However, limitations in military arsenals, diplomatic pressures, and strategic deterrents (e.g., avoiding direct U.S. involvement) are likely to contain the conflict.

• Signs indicate Iran may prefer a negotiated resolution, potentially following further skirmishes. 

Probable Scenarios

• Base Case (65%): The conflict remains contained, with minimal oil supply disruption. Oil prices may rise in the short term but would present a selling opportunity, while share market dips may offer buying opportunities.

• Risk Case (35%): A serious disruption, especially via the Strait of Hormuz, could double oil prices to ~$150/barrel, leading to sharp share market declines. This scenario would likely trigger a forceful U.S. response and be temporary. 

Global Economic Impact

While a major oil price spike could reignite inflation fears, it's more likely to restrain growth by reducing consumer spending. Historically, oil shocks have exacerbated—but not necessarily caused—economic downturns. Importantly:

• Energy use per unit of GDP has fallen, reducing sensitivity.

• Oil prices haven't doubled over 12 months—a key trigger point for past recessions. 

Australian Impact

Australians would mainly feel the impact through higher petrol prices. A sustained rise of $US12/barrel would add around $5/week to household petrol bills. Still, this would add just ~0.2% to CPI, which the RBA is likely to overlook given broader inflation dynamics. Australia’s status as a net energy exporter offers some cushion through potential gains in gas export revenues.

Investor Implications

The Israel-Iran conflict adds to market risk, particularly if it escalates and threatens oil flows. However, historical precedent suggests such flare-ups often resolve without lasting market damage. Investors should stay alert for buying opportunities amid volatility. Since WWII, U.S. shares have typically rebounded strongly in the months following geopolitical shocks.

Rick Maggi

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Disclaimer
This article has been carefully prepared by Westmount Securities Pty Ltd (ABN 42 090 595 289, AFSL 225715) for general information purposes only. However, neither Westmount Securities Pty Ltd nor any of its affiliates guarantee the accuracy or completeness of any statements contained herein, including any forecasts. It is important to note that past performance is not a reliable indicator of future outcomes. This material does not consider the specific objectives, financial circumstances, or needs of any particular investor. Therefore, before making any investment decisions, investors should assess the relevance of this information to their individual situation and consult professional advice, taking into account their unique objectives, financial position, and needs.