It’s a New Year and, a time to set new resolutions and goals.
Financial goals are a big part of any human’s life and to achieve them, you have to set them and review them periodically.
If there is one thing, the Coronavirus pandemic of 2020 taught us, it was the importance of financial stability and how prepared we should always be for uncertainties.
To get your finances right in 2021, here are 5 financial goals you should set for yourself.
1.Have a monthly budget
A budget is the first step to achieving your financial goals. Write down your budget plan and stick by it.
Setting a budget enables you to exercise discipline and restraints when it comes to spending money. You are able to know how much is going to rent, bills, and other miscellaneous expenses and how much you are saving or investing.
By setting a budget – and sticking to it – you’ll be able to better control how you are able to reach your other financial goals.
2. Pay off debts
Starting the year as a debtor can affect your financial goals.
High interest, bad debts such as credit card debts and personal loans act decrease your worth at a compounding rate, rather than growing it.
Paying off debts such as these should be your first priority, and this year is as good a time as any to become debt-free.
3. Avoid impulse buying
Impulse buying is a weakness of many women by eating deep into their budget and savings. You see that expensive dress that you really like but don’t have the financial resources for it, it would do you a lot of good to change your mind about buying it. Impulse buying can lead to buying things on credit which is not good for your financial growth and must be avoided at all costs.
4. Make a savings goal
Savings and investment are two financial terms that will help your finances as an individual. If you are a spendthrift, it may be difficult but it is definitely attainable. You can start with the local savings box ‘Kolo’ as we call it in Nigeria. Have a minimum amount that you want to put into it whether daily, weekly, or monthly and stick by it.
You would be surprised at how much you would have saved up by the end of the year. There are also online savings apps that have interest rates like Piggyvest and Cowrywise that you can use.
Bitcoin and Cryptocurrency are becoming a thing for investment but make sure you do your research first before investing your money.
5.Write down your goals and stick to them
After all that has been said and done, getting organized and writing your goals helps you achieve them faster.
Having a financial planner is a good way to start as it would get your savings automated, keep your documents stored nicely, and you will be setting yourself up for success.
Whether you start this in January or halfway through the year, the promises and challenges will work for you and help get you focused on the financial success you’ve been striving for.