Welcome to 2018 dear readers! We made it to another wonderful year.
With every new year comes new goals to be set and achieved. Self evaluation when setting goals for the new year cannot be over emphasized, but while we are evaluating every aspect of our lives over the last year to set ourselves GOALS for this year, we should not forget to include our finances.
The year of self realization just passed alot of us learnt that having a financial plan for the year is very important
What does your money do for you? This is one question we should all ask ourselves. What do we want our money to do for us? What did our money do for us last year?
You must gain control over your money or the lack of it will forever control you. –Dave Ramsey
We work and earn money but what does that money do for us! Alot cannot boast of savings, investments, trust funds and so on because of the way we mismanage our funds. Yes, it is true that available funds may be limited but we have to understand that funds will always be limited in supply against our demands ie. We will always want what we cannot afford at the moment that is how humans are built. We will always want to buy a house we know we cannot afford and even when we work long enough or save or invest long enough to get that house, we will move to wanting something else something bigger. This is why I believe we as human beings are naturally built to set challenging goals to beat. Starting the year on a clear financial picture will help in planning for our year adequately.
Our proposed expenses and expected incomes should be written down in a budget and updated from time to time. Here are some tips I think should be put into consideration when setting goals for 2018:
- No Debt Rule: except you are a finance guru set a goal to not amass any debts this year. Why? Because it automatically eats into your disposable income. If you have a big project to undertake and you really need to borrow money to undertake that project, then make sure you borrow from a reputable institution with a reasonable interest rate. Make sure that is the only long term liability you owe and have a payment plan for the loan collected.
- Budget it all: Ensure you do not Spend more than you earn that is the best way to stay debt free. I know those gucci shoes look great and you want to be a part of the self acclaimed “gucci gang” but if buying those pairs of shoes will cut so deep in your pocket that you will need to borrow some money to survive the next weeks before you recieve your next paycheck DO NOT buy them. They are not assets.
- Assets: if you do not own any substantial Assets then this is the year to be looking into getting yourself a few of those. For those that do not know simply put an Asset is an economic resource tangible or intangible that is owned and controled to create value. An asset appreciates over time for example a land bought this year will be worth a lot more in 5 years. There are alot of assests to invest in that will add value in a few years and will eventually be worth the financial undertaking.
- Multiple streams of Income: having more than one score of income is very important as it not only give financial security but it enables you undertake long term investments and asset acquisition.
- Prioritize: always set your money goals in other of importance so as to not burden yourself. A priority list should be drawn and your goals should be set around this list. The most pressing expenses on top of the list and the least pressing finacial engagements at the bottom.
- To Spend and To save: we should map out the portion of our income is to be spend and what portion is to be saved. And also set an amount we want to save this year for example if you set a goal of saving $500 (N180,000) at the end of the year as a goal then you know automatically that you need to save nothingless than $42 (N15,000) per month that means you have to make more than that amount obviously and also invest.
- Have a plan: a plan of implementation to back our set goals is very important. Money is a terrible master but an excellent servant. –P.T. Barnum
Actions speak louder than words setting your goals and making moves starting from today will definitely be steps in the right direction in the wise words of Robert Kiyosaki “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” With that said A very happy new year to you I urge you to live your best life everyday of this year and work earnestly to achieve all set goals. May this year be the best for self development, financial advancement and wealth in knowledge and experiences. Happy 2018! Love D.A♥