Set some goals: Its Financial Literacy Month, April, we’ll offer tips to help you get your personal finances in shape. Stick with it and you’ll be on your way to financial wellness.
Setting financial goals is an essential step on the way to financial success – whether it’s putting money away for retirement, paying down a debt, advancing your education, saving for a travel, or buying a home.
While it is never too early or too late to start setting financial goals for your future, there is no time like the present. Identify your goal and write down everything you need to do to achieve it. If your goal is to start and increase your savings, for instance you may want to determine how much to save each month to reach your goal.
If you are a smart kid and started saving your allowance in a piggy bank or sneakily kept the change from a GHS 5 when you bought milk for your mother, you probably already realize that your financial priorities change over time. A handful of pesewas or fistful of cedis notes served you well as a preteen, but as we age, so should our money management goals.
Once you’ve documented your financial goals and how to achieve them, create a comprehensive plan for your long-term financial goals.
It is best to manage your financial goals as you would a project. With a project, you have to take a step-by-step approach. By focusing on each step, you’ll be able to check off individual tasks or smaller goals one at a time, moving you toward your overall goal with every check.
Achieving your financial freedom or success has nothing to do with luck – it’s a matter of setting smart goals and having a good plan to follow. So for this Financial Literacy month, and this week, we are challenging you to Set Some Financial Goals and to do that;
- Write down every goal you can think of and be specific. Instead of just writing down the word “travel”, put “travel to Kumasi”.
- Categorize your goals by length of time to accomplish – Immediate (within three years); Intermediate (next three to seven years); and long-term (seven-plus years).
- Set priorities. Which of your goals do you want to accomplish first, second and so on.
- Figure out a plan for achieving that goal and the others on your list.
Next week, we will be talking about Saving Money vs. Spending Money, encouraging you to track all of the money you spend (essentials/needs and wants) and how much you save. In order to get your finances in tip top shape, you have to know what money is coming in and what’s going out.
In the meantime, do you have any ideas, questions, suggestions, comments you’d like to share with us? We’re happy to read them in the comment box below.