A new year is a new opportunity to set new financial goals and achieve them. Initially, it might seem daunting or there might even be thoughts like, ‘but, I set some goals last year and didn’t achieve it‘. You don’t have to embark on that journey by yourself without guidance. Here are a few tips to help you achieve your financial goals for 2019.
Write Them Down
Writing your goals down serve two purposes: it makes them more real to you. It’s not enough to think up your goals in your head, write it out, boldly. Secondly, writing them down serves as a reminder.
While writing out your goals, make them simple, straightforward and achievable. For instance, don’t write “Save/Invest money.” write “Save N20,000 monthly in a mutual funds account.” It’s okay to start small, don’t attempt to save 90% of your income on your first trial.
Build an Emergency Fund
An emergency fund is that amount of money you have saved for unexpected expenses that must be urgently attended to. I added “…that must be urgently attended to” because an unexpected expense may not be urgent and in that case, you can provide for it in your next budget. I recommend that you have at least 6 months worth of your monthly expenses in your emergency fund. That is, if you spend about N50,000 monthly, you should build an emergency fund of at least N300,000.
Read Books on Finance
If you’re serious about reaching your financial goals, then you must stay motivated and enlightened. There are a good number of books you can read to keep you informed about money, savings, investments, stocks, etc.
Here are my top three books:
Intelligent Investor by Benjamin Franklin
Rich Dad Poor Dad by Robert Kiyosaki’
You are a bad ass at making money by Jen Sincero
Invest in a Mutual Fund
A mutual fund is a pool of money from different individuals invested and managed by a Fund manager for profit. What distinguishes a mutual fund is what it invests in. For instance, there is money market mutual fund, equity mutual fund, real estate mutual fund amongst others.There are many mutual fund managers in Nigeria today that offer investment opportunities for as low as N5000. Make sure to acquire information about interest rates and redemption policies before you invest.
Build a Stock Portfolio
If you want to earn more money from investments, it is not enough to have just one. A stock portfolio means that you have invested in more than one kind of stock or market. This is to make sure that your risks are reduced; if one stock is not performing as expected, others will. You should speak do your research before you decide which stocks are best for you to invest in.
Find a Profitable Side Hustle
“Side hustle” is parlance for an extra stream of earned income. That skill or talent you have can be developed to earn you more money. Don’t dull in 2019, make profit from your passion. Even if it’s not really your passion, if it’s legal and profitable, make plans to monetise it.
Draw Up a Budget
Budgeting can never be overemphasised. You can’t control what you don’t track. Make sure to keep track of your expenses every day and draw up budgets before you start spending. This will help you have more control over how much money goes out of your wallet or bank account. There are several mobile apps that can help you with this. It’s not enough to draw up the budget, be disciplined about keeping to it. You may have to say no to some hangouts or “aso ebis” if you were not pre-informed. You don’t owe anyone an explanation beside “I cannot afford that now.”
Learn a New Skill
About that side hustle, there are certain skills that are currently on demand that can bring in some more cash for you. More interestingly, you can acquire most of them for free by taking courses online. Even if you have to pay, consider it an investment. By all means, keep learning and keep earning.
Get an Insurance Cover
No one likes to spend money on insurance, but it is one of the smartest things that you can possibly do on your road to financial independence. If the unexpected circumstance happens, you do not have to spend the money out of your pocket. It is a hedge against unforeseeable event and it is a wise investment decision to get one
Join an Online Community
One of the best ways to push you further towards your goals is by learning and accountability, a community does this for you. Of course, MoneyAfrica is one of the best personal finance platforms you can be a part of. Let us help you earn more, invest more and grow sustainable wealth. Follow us on all social media platforms @moneyafrica.
What other tips have helped you to achieve your financial goals?
Written By Oluwatosin Olaseinde