How to Set and Achieve Financial Goals this Year.

72% of households do not have a written financial plan, this is according Charles Schwab an American multinational financial services company, I guess it is even worse for households in developing countries. Do you have your financial goals written down? If your answer is No, this is article is for you.

I was invited last weekend to speak about how to set and manage financial goals by Next Life Finance in Partenership with Rotaract Club of Rubaga and here are the few highlights from what I shared in the session.

Topic: SETTING AND MANAGING YOUR PERSONAL FINANCE GOALS

📌 A financial goal is any plan you have for your money.

📌 Short term goals should always fit in the long term goals.

📌 Track progress of your long-term goals in your New Year resolutions.

📌 Make reflections for realistic goal setting.

When making resolutions consider the following;

1. Your past financial habits
2. Your current net worth i.e. what assets do you have and what liabilities do you have. Also put your incomes and expenses into consideration.
3. Consider your future i.e. where you want to be. It's a result of your aspirations and your current aspects.

📌 Write down your goals after reflecting.

You can consider the following as a gide while setting goals

• Get out of debts
• Have an emergency fund
• Have an extra source of income
• Have an insurance policy
• Plan for your retirement

📌 Setting both long-term and short-term goals should be SMART ( Specific, Measurable, Achievable, Realistic, and Timely)

📌 Consider the 50/30/20 rule while budgeting

📌 Limit your needs to 50% wants to 30% and 20% to your savings.

📌 The 20% should help you attain your financial goals (Investment and Saving)

📌 Create an action plan. A goal without a plan is just a wish

Break down your actions into smaller steps

📌 Start acting

📌 Have accountability partners

📌 Be patient along the process

📌 Review your financial goals

Take home: the future depends on what you do today. Saving is finite but income is infinite.

🎯 Kindly note that this is just a summary, for detailed information kindly visit YouTube channel to watch the full session. via this link Setting & Managing Personal Finance Goals - YouTube

Would you like to invite me to speak to your audience on personal finance? WhatsApp me on +256703803255 and Incase you want me to be your coach, you can send me a message here or through the same whatsApp number or email samibanda2@yahoo.com