How to set realistic financial goals this New Year, according to Sim Kaur from Friends That Invest

“The goal isn’t to be perfect with money, it’s to feel informed, empowered, and in control.”

The temptation to embark on a personal rebrand in the weeks following January 1 is always high. The New Year always tends to symbolise some kind of reset, a slate wiped clean. What kind exactly, is open to interpretation. Some like to make public declarations for goals like moving overseas, starting a side hustle or giving up the vape, while others prefer a little mystique, instead sticking to a certain word.

The wave is admittedly pretty fun to ride – at least initially. The flip side of setting overly-ambitious goals is that you’re left feeling guilty if you fall short. The key is finding the sweet spot.

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Along with improving fitness and eating healthier, financial goals tend to rank pretty highly on people’s lists. In fact, 85 per cent of Australians have set a financial goal for 2026, according to a recent study by Finder. Of this, 53 per cent want to save more money, 32 per cent want to spend less and 18 per cent want to invest more. Bottom line, we all want to feel better about our finances.

However, there’s something particularly intimidating about setting money goals. Debt, salaries and savings can become sore spots when it comes to comparison, and feeling like you’re behind.

It was this feeling of overwhelm that first motivated Sim Kaur to launch her business, Friends That Invest (formerly Girls That Invest). In a sea of white, male authors, Sim wanted to cut through unnecessary jargon and empower other young women.

When it comes to financial New Year’s goals, Sim’s on board, as long as the intention is right. “If your resolution is rooted in guilt or comparison, it often backfires,” she explains. “But if you use the New Year as a natural pause point to reflect and reset, without perfectionism, that can be really powerful.” Below, she steps us through her suggested approach to financial goal-setting, including the one habit she swears by.

 

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Fashion Journal: Hey Sim! Is there a ‘minimum’ amount you need to earn before financial planning becomes worthwhile?

Sim: Absolutely not! We get this question all the time and it’s so important to know that financial planning isn’t about how much money you have, it’s about how intentionally you use what you do have. The earlier you start thinking about your money, the more time it has to compound and the more impact it has. Compound interest is your best friend!

If someone asked you for a starter list of financial goals for the New Year, what would you suggest they focus on?

I’d encourage them to focus on getting the foundations right, rather than chasing overly ambitious targets. That usually means building a small emergency buffer, knowing where their money is actually going, and setting up a simple, consistent saving plan.

I’d also suggest spending time learning the basics of investing so it feels less intimidating, and prioritising goals that reduce financial stress and increase confidence, not just those that look impressive on paper. Break it into small steps. Big goals feel overwhelming but once you break them into monthly or even weekly actions, they become manageable. And remember to celebrate the little wins.

What’s the most effective way to track financial goals in real life?

The best system is the one you’ll actually use consistently. For some people that’s a spreadsheet, for others it’s an app, and for some it’s just one intentional weekly check-in.

For someone earning an entry-level salary, what should realistically come first: saving, investing or paying off any debt?

It’s not always a case of choosing just one priority, it’s about finding a balanced approach that supports both stability and progress. The first focus should be covering essentials and staying afloat, followed by building a small emergency buffer.

From there, paying down high-interest-debt can make a meaningful difference, while also starting to learn about investing early, even if that means beginning with very small amounts. You don’t need to wait for the perfect financial moment to start. Building good habits early matters far more than getting everything exactly right.

How do you find the sweet spot between enjoying life today and setting yourself up for the future?

I don’t believe in an all or nothing approach. Your money should support both your present life and your future self. That means intentionally allocating space for enjoyment, without guilt, while also paying yourself first.

For me, I prioritise investing in the stock market so I can retire early, but I still enjoy spending money on things like travel because that’s also important to me.

If someone only focused on one financial habit this year, what should it be?

Knowing what’s coming in, what’s going out and why. We can’t change what we don’t know and everything else – saving, investing and confidence – flows from that.

What’s a money habit people underestimate the impact of?

Automating good decisions! When saving or investing happens automatically, you remove emotion and decision fatigue. Over time, that consistency compounds more than you realise.

If someone feels like they’ve already ‘messed up’ financially or it’s too late, how can they reset?

First, it’s not too late. Almost everyone feels this way at some point. A reset starts with compassion, not punishment. Take note of where you are without judgement, then focus on one small positive step.

What about dealing with the pressure to have reached a certain milestone?

Your financial journey doesn’t need to look like anyone else’s. There’s no universal timeline, no gold standard. The goal isn’t to be perfect with money, it’s to feel informed, empowered, and in control enough to make choices that align with your life. You’ve got this!

Find more from Sim Kaur at Friends That Invest here.