I know that when the year began, most us wrote Resolutions for 2018 which probably included financial goals. Some of us may be drowning in debt and I know for a fact that we all dream of financial freedom but we might not know how to get there. You may have been trying but failing to attain financial freedom over the years or you might have got the hang of how to attain financial freedom and you are probably trying to work towards it. I want to share with you 10 financial goals you can take on to attain financial freedom and these include;
- Develop a monthly budgeting habit
The first step is to have a financial budget. This will act as a guide as you will know how much you earn or make in a month. The budget will then help you on how you can spend and save your money. Draft a new budget every month as expenses may vary.Most importantly try and not do impulse buying. Stick to your budget.
- Pay off all your debts
If you have debt, it is best to knock it off as fast as possible because Debt is the enemy of WEALTH!! After paying off your debt, you may then get on with the business of increasing your net worth and creating financial freedom.
- Cut your expenses ruthlessly
We all want to lead an extravagant life, if you want financial freedom, you will have to cut your expenses as often as you can and save your hard earned cash. Determine your needs from your wants and start cutting down from there.
For example, if you are buying lunch every day, start thinking of bringing packed lunch to work. If you are buying lunch worth $5/ day that adds up to $25/ week and $100/ month on lunch. If you carry packed lunch you can save up to 50% of what you were using for your lunch and save the other $50.
- Earn Extra Income
Having financial goals means always looking for ways to supplement your income and earning extra income. This will make you less vulnerable if say for instance, you lose your job. There are many things to consider, you can be a part time consultant in your line of work, eg if you are an accountant, you can balance books for clients and you can earn extra cash. Or open a boutique or a grocery shop or sell Avon, Tupperware or Avroy Shlain products.
- Start an emergency fund
Save 10-20% of what you make a month, this will improve your finances significantly.This step is critical because it will help you stay out of debt in the event of unexpected expenses.
- Automate savings, billings and other expenses.
Automating saves you lots of time. This tweak to your finances will help relieve stress about managing finances. Find out from your bank if this is possible. Automate your savings account, life cover, retirement account, medical aid, funeral cover, water bill. It will save you lots of time and you can use your time to make more money.
- Get life cover
We are not going to live forever, it is key to then get life cover so that your family will be taken care of if you die. Also whilst you are still alive, you can use your life cover to acquire assets as you can use it as collateral.
- Get retirement cover or start a retirement account
At some point of your life, you will want to retire and you will want to retire rich. Banking on the government to take care of you is not really good strategy. Acquire assets that will also enable you to enjoy your retirement or save money so that you can retire and lead a comfortable life.
- Know your net worth
Knowing your net worth can help motivate you to keep doing the right thing with your finances. There are many apps but my favourite one is Personal Capital. Knowing your net worth will help you to know what type of lifestyle you can afford.
- Read finance books
Knowledge is and will always be POWER!!! Knowledge will empower you and enable you to make smarter money decisions for you and your family.
Together we can change our finances ladies. Just take one step at a time.
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