How to meet your financial targets with ease

How to meet your financial targets with ease

Sep 05, 2020

4 mins

Augustine Ogwo

Augustine Ogwo

And no, you don’t have to wait for the 1st of January before making new financial resolutions and setting fresh goals. Now is the best time!

Financial targets are basically your money goals. Very often these goals or targets are informed by our future financial needs.

Financial targets are basically your money goals. Very often these goals or targets are informed by our future financial needs.

There’s no way you are going to meet financial targets that don’t exist anyway. So, the right first step to take on this journey is to set financial goals.

But first, you need to imagine and paint a vivid picture of your dream future before setting your financial goals. In this article, we will walk you through the various steps of reaching your financial targets with ease.

Setting your financial goals

Do you have a plan for your future? Have you ever imagined your life in 5 or 10 years from now? What kind of life do you want to live in? Are you done imagining and painting a picture of your future? It’s now time to set financial goals that align with your dreams.

And no, you don’t have to wait for the 1st of January before making new financial resolutions and setting fresh goals. Now is the best time!

  • Pen down those goals

It starts with writing, don’t leave that financial target in your mind, write it down. Documenting your goals is not rocket science. Just write the goals down in your notepad or any writing app of your choice.

You could set goals for the next month, twelve months, five years, or even a decade.

It is very important to have these goals written down for reference purposes and actions.

  • Draft a budget

What foundation could be more solid for your financial goals than a realistic budget? Budgets are the springboard from which all your financial goals take a leap.

Your budget basically records your income and expenses. You may choose to have a monthly budget which helps you keep track of errands you send your money 😒.

More importantly, a budget will help you understand how well or poorly you are performing financially. It also shows you how far from or how close you are to your financial goals.

Measuring up to your financial goals

Now that you have written down your financial goals and drafted a budget, you may begin to gain a clearer vision of what needs to be done.

If things are still blurry, here are a few tips on how you can meet your financial targets with ease:

  • Offset those debts

With pending debts, you take two steps backward every time you take a step forward. To reach your financial targets quicker, it is important to pay your debts as early as possible.

Why take a car or student loan that can hold you back for years when you can explore better options like grants or scholarships?

  • Save up for emergencies

Life is always looking for ways to take one by surprise.

It’s important that one is prepared for the rainy days just so surprises and disappointments don’t throw you back to ground zero.

One sure way to save up for emergencies is by setting aside an emergency fund. An emergency fund is a separate savings account used to cater to unforeseen circumstances when they arise.

Some such unforeseen circumstances could be sudden unemployment, health challenges, or even natural disasters (No one was expecting CoronaVirus when it came 😩).

Typically, your emergency funds account should be worth at least three months of your income.

  • Secure your future

To pursue the retirement you envision, you have to pay tomorrow today. What does this mean? You have got to save for retirement and one sure way to go about that is by starting a retirement fund or life insurance plan; you can check out the likes of Tangerine Life, and Allianz Nigeria.

Even if you are not currently on paid employment, you can still sign up with a pension fund administrator like Stanbic IBTC pension managers who will help you secure a wholesome life after retirement.

  • Cutting your coat…

There’s no chance that you can measure up to your financial goals if you don’t cut your coat according to your cloth.

To cut your coat according to your cloth simply means to live below your means. To live below your means, you’ve got to spend less than you earn. This doesn’t imply that you should subject yourself to undue hardship, just spend wisely 🤓.

If living below your means results in suffering or hardship, it means you aren’t making enough money yet. If this is the reality, you will need to diversify and boost your streams of income.

  • Finally, making saving a habit

Once you become consistent at spending less than you earn, you realize your savings will start growing fast.

One sure way to build wealth with ease is by saving some Kobos on every Naira you make. You can achieve this by creating a recurring savings account which is credited automatically over a specified period of time.

We have made it easy for you, it’s as simple as creating a recurring safe or taking advantage of the other savings plans.

What other tips do you think can help one meet his financial target with ease? We want to hear from you 😊👇🏼

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