Life without a goal is like a race without a finish line; you’re running nowhere. Goal setting is an integral part of life. In every facet of our lives, we need goals to guide us. We cannot disregard the importance of financial goals in our journey to financial freedom.
As we start the new year, these are some financial goals you can set:
- Create a weekly or monthly savings plan – Save at least 10% of your income monthly, save towards major purchases, retirement, school fees, rent, holidays/vacations, etc.
- Build an emergency fund to cater to unexpected expenses. Save your emergency fund in a high interest-yielding account that can easily be accessible.
- Manage your debt – create a debt repayment plan, pay off all your existing debt, and try not to take on new debt in this new year.
- Get insurance to cover your life, property, health, children’s education, and all that matters to you.
- Start Investing – take charge of your financial security by investing in a business, stocks, real estate, etc. Seek expert advice before you invest in something you do not understand.
- Create a yearly and monthly budget – do not wonder where your money will go this year. Track your spending with a monthly and annual budget and review it occasionally.
- Teach your children money management – teach them early the habit of saving, investing, taxes, and managing their expenses.
- Create multiple streams of income – have secondary sources of income that can support you grow your income.
- Read at least a book on finance/business every month, articles, and business news to increase your financial literacy.
- Have an annual finance ‘health check’ to make sure you are on the right track with your finances.
A good financial plan is a road map that shows us exactly how the choices we make today will affect our future – Alexa Von Tobel
Wishing you a financially sound year!