Money makes the world go round! yeah! It drives our day-to-day decisions like buying a type of subscription on your decoder or using NETFLIX instead. It makes the execution of projects smooth. However, having a short term financial goals or long term financial goals helps us prioritize and execute bigger goals seamlessly.
What do we mean by financial goals? They are goals that you centre around money. They are personal objectives that you want to achieve either long-term or short term provided that you have a certain amount of money saved for that set time.
For instance, starting a business, saving towards becoming a homeowner, changing your car, doing your master’s program in a choice school (these are long-term goals). Buying a refrigerator, and changing your television (short-term goals). These goals can be personal or for your business.
Sometimes people do important things on a whim and then everything else suffers or they take a loan for almost everything. Imagine that you take a small loan twice a year, if you put a time frame on that plan and you save towards it, that interest that you will be charged on that small loan would have been better saved.
Yes, indeed, we may sometimes need loans, however, you will reduce your debt by a large percentage if you handle your finances properly. Identifying your financial goals disciplines you to stick to them and encourages you to keep at it, it shapes your spending, investing, and saving.
HOW DO WE KEEP TRACK OF OUR FINANCIAL GOALS?
- Sustain it: Make a realistic plan for a time frame. For instance, if you want to change your car on a salary of 250,000 NGN per month. You should put into consideration rent, monthly feeding, transportation, and other expenses before deciding the time frame on your plan and the type of car to buy. Be realistic about it and stick to it month after month until you’re set.
- Make it the first thing you deduct money for: It is easier if you deduct money from your salary towards your goal first than to save from what is left. You can also give your bank a standing order to send money from your salary account into another account at the end of the month. That way, you don’t worry about spending it all.
- Agree: if it is a joint goal, like buying a new home, you must work together with your partner to ensure that you stay on track.
- Financial experts: Some investments or pension companies offer certain services that are geared towards long-term goals like an education fund (if your goal is to do your master’s) you could work with them towards saving towards it.
- Always go over your plans from time to time. Write them out, reset, rebalance and re-strategize especially where you may need to increase your savings or divert proceeds of sales from some shares and investments that are at risk for instance.
Above all, we need to be very intentional about our financial goals just as we are about maintaining our stature or losing weight.
Do not forget the portion of your salary to be saved for investments.
