How is setting financial goals for 2019 important?
At the beginning of each year it is important to take stock of your journey through the previous year. Your strengths and weaknesses, goals and ambitions and how far you have come in achieving them. Strategies adopted to achieve your goals and the end results of each strategy.
Analysis of your financial habits (expenditure, savings and investment) is a necessity to avoid certain setbacks from reoccurring. You should strive to improve yourself financially even as you make New Year resolutions for the year.
Did you spend all your savings during the holiday period without care about what the next year would look like and are now financially strained?
You should also try to read as many financial books as possible so that you can improve yourself. Examples of some books to read are: Smart Money Woman, the smart investor, Rich dad poor dad, the money makeover, the richest man in Babylon, your life or your money and several others. Reading books on finance will help you to grow your income and manage them successfully.Click here to get more books
It’s time to set some serious goals. These goals will help you make lasting changes and take control of your finances. Whether you choose to do just a few of them or you are ready to tackle all of them, you can start making changes. You are the only one that can change yourself and it is important to have a plan to make your resolutions stick. Take the time to plan for the New Year today.
Write out a budget for each month:
This may seem like a simple goal, but writing a spending plan each month is the first step in getting control of your finances. If you can write out your budget each month, and put every dollar you earn in a specific place you will begin to win financially. This helps you realize just where you are each month. It allows you to decide how you want to spend your money instead of just letting it drift away. Make your budget flexible enough so that you do not have to exceed your budget.
Do not draw up an unrealistic budget that you would not be able to work with. A budget should not be drawn for drawing sake, a budget should be drawn as a guide on how expenditure for each month should be made.
Have a journal for your expenditure:
Documenting every expenditure is a way to keep track of your finances. No matter how little your expenditure is, try to document it so that you can trace what you spent your money on.
Having an expenditure journal helps you monitor your money spending habits and would also serve as a tool to change and modify them where necessary.
Stick to your budget each month:
As much as possible try to stick to your budget. As difficult as it may be, develop a habit of discipline and stick to your budget.
Save up for emergency funds:
You need to have emergency funds this year no matter what. If you do not already have, the time to start is now. It doesn’t matter if unexpected situations arise or not, it is important you have an emergency fund always Emergency funds would save you if you in cases of unexpected health challenges, loss of job and the likes.
Start a side hustle:
Multiple streams of income is the fastest route to financial independence. If you have a dream project in mind then you should 2019 is the year to start. 2019 is a year of birthing those dreams you have. Start by doing research in that field and think of ways to improve on what is already in existence.
Start saving for retirement:
Open a retirement account. You are never too young to start making plans for the future. There are several companies with different packages that would interest you. An individual retirement account (IRA) can be a fantastic tool for saving for retirement. You don’t need much to get started, as many have no minimum investment requirements. Whether or not you should open an account depends on factors like your income, savings, and other retirement accounts.
Start the kolo challenge:
The kolo challenge is a savings challenge. Kolo is a wooden or metallic container with a small opening where you can put in money daily and break open at the end of the year. Your kolo savings can come in handy depending on how seriously you take it. Your kolo savings could also serve as emergency funds to be broken only when an emergency comes up. If you are not disciplined enough to do the physical kolo challenge then you can do the online kind of savings done by piggybank.ng. The aim is to help you save and so consequences are placed on withdrawals on certain amounts.
If you do not have insurance, start one for yourself and your family (Example National Health Insurance Scheme (NHIS), AVON):
Having health insurance is an effective way of saving cost. Health insurance packages cover various range of health issues depending on the plan you signed for. Needless to say, having a health insurance plan in 2019 is a smart plan.
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