New Year Financial Resolutions: Achieve Your Financial Goals In The Year 2019

Compliments of the season to you.

Welcome to the year 2019!

Have you gotten one or two resolutions for this year? Yes several people have different New Year resolutions but the most important aspect is to stick to it.

What are your financial goals and aspirations?

How do you intend to achieve them and what necessary  steps you need to take in order to  achieve these goals?

The 3 Fs in the journey to financial freedom is key to achieving your year 2019 set financial goals.

The 3 Fs here are Financial Planning, Financial Intelligence and Financial Discipline.

How does this work?

The first thing is to have a financial goal, a set target to achieve before the year 2019 runs to an end.

The next stage is to set up a workable savings plan to achieve your desired financial goals.

For example, if my goal is to have the sum of N1,200,000.00 in a fixed deposit account this year or buy a house worth N24,000,000.00 after considering my major source of income, I will set out modalities of saving towards this financial goal.

For you to raise N1,200,000.00 within the space of 12 months, you need to spread this as N100,000.00 monthly savings. Peradventure this might not be workable your current salary, then you need a side hustle or extra source of income to achieve this. This is where financial planning comes into place.

There is a need for you to take the following steps when it comes to financial planning:
1. Create a budget :

There is a need for you to have a budget. It is the most reliable tool in tracking your income and expenses which helps in avoiding financial struggles.Your budget doesn't need to be fancy; all you really need to do is list your various monthly expenses (including one-time expenses -- you'll want to allocate those over 12 months), compare what you're spending to what you're bringing home in your paychecks, and see if there's a nice chunk left over for savings. If there is, you're in pretty good shape. If not -- and, let's face it, that's going to be the case for most of us -- you'll need to start making changes to free up more cash to put away. But once you have that budget mapped out, you can see where you're potentially paying too much and where there's room to cut back.

2. Calculate your personal net worth annually:

It doesn’t have to be complicated. Make a list of your assets (what you own) and subtract your liabilities (what you owe). Subtract the liabilities from the assets to determine your net worth. Don’t panic if your net worth declines during tough market periods. What’s important is to see a general upward trend over your earning years. If you’re retired, you’ll want to plan an income and distribution strategy to make your net worth last as long as necessary, and to support other objectives

3. Prepare for emergencies:

If you aren’t retired, we suggest creating an emergency fund with three to six months’ worth of essential living expenses, set aside in a savings account. The emergency fund can help you cover unexpected-but-necessary expenses without having to sell more volatile investments.

4. Manage your Deb:

Debt is neither inherently good nor bad—it’s simply a tool. For most people, some level of debt is a practical necessity, especially to purchase an expensive long-term asset to pay back over time, such as a home. However, problems arise when debt becomes the master, not the other way around. Here’s how to stay in charge.

Keep your total debt load manageable.

Don’t confuse what you can borrow with what you should Keep the monthly costs of owning a home (principal, interest, taxes and insurance) below 28% of your pre-tax income and your total monthly debt payments ( auto loans and mortgage payments) below 36% of your pre-tax income.

For you to achieve your financial goals this New Year, financial Intelligence is one of the keys to gaining financial freedom, it might be easy for you to save, but how knowledgeable are you with investing your money in the right place with good returns and financial security. Some people put their money into gambling while others lend friends and family who may not pay back. You need financial intelligence this year 2019 for you to know how to put the square pegs in the square holes and get maximum return on your investment.

Finally for you to enjoy financial freedom this year, 2019 and achieve your set goals, you need to be financially disciplined.

When you are financially disciplined you don’t lavish your money on frivolities rather on what add value.

Combine the 3 Fs (Financial planning, Financial Intelligence and Financial discipline) this  year while you achieve your financial set goals.



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