Top 5 ways to set financial goals and ace themReading Time: 3 minutes
Financial goals can be seen as blueprints to achieving great feats with money.
In today’s society, money is very important as it determines the progress of an individual, his business, and the nation at large. However, when dealing with money, it is crucial to know how to manage and spend it; hence, the essentiality of financial goals. Financial goals are achievements set for the future measured on a monetary scale.
Financial goals can be seen as blueprints to achieving great feats with money. Although many understand their importance, however, they are still not proficient at setting them and actually achieving them.
As such, this article reveals the top five (5) ways to set financial goals and ace them.
1. Set money aside for the big stuff
The big stuff could be anything, such as a new car, a trip abroad, new devices/gadgets etc. They are basically, purchases/events that require a lot of money which you cannot provide all at once without it taking a toll on your finances.
To help you ace your goals, plan for the big things, make an estimate of how much you need, spread it over a period of months/weeks/years and keep in an account where you cannot access it until the set date.
2. Plan your expenditure
The saying that money is slow to come in but finishes quickly is true. This week you are buying everything you feel you need and then the next one, you are broke and so close to asking for a salary advance to get through the last week of the month.
A part of finance is planning. It means allocating money to certain needs and expenses. If you are to ace those goals, you must plan your expenses, make a budget and stick to it, from food, to clothing, to transport and even a gift for a friend’s birthday, they are all expenses that should be planned while you create a budget.
3. Reduce Cost When you Can
As you make plans, make sure you are spending the least possible amount in cases where you can. You must remember that it shouldn’t cost an arm and a leg to prove that it is good. If there is a way to cut cost, make sure you do it.
If eating out is expensive, try cooking your own meals and saving the extra coins, or carpool with a friend/colleague to reduce the cost of transport or buying secondhand clothes instead of new ones that cost more. Whatever you do, make sure you are spending the least possible amount at any time.
#lendSaving and investing are great ways to build wealth. It is essential to have your money increase over time, and not just holed up in a bank account, and this is why investing is key.
As you make plans to invest, there would be many enticing packages promising you an incredible percent returns on your money. Please do your research and ask questions. Make sure you are putting your money into something you are 100% convinced about. Do not consider investing in a Ponzi scheme. A seemingly low ROI is better than a scam taking all your money away.
5. Clear previous debts
It is ironic to set financial goals with financial liability tethered to you. This will surely pull you back, in one way or another. Before you decide to set financial goals, ensure you pay back all debts. Having a clear conscience and a clean financial slate is crucial if you are to make progress financially.
Your financial goals are attainable, so set them reasonably and carry out periodic checks to ascertain how well you are doing from time to time. Ensure you act on the tips given in this article, and you can be sure to experience financial growth.
~ Nairametrics Personal Finance (18 August, 2020 — https://nairametrics.com/2020/08/18/top-5-ways-to-set-financial-goals-and-ace-them/