The New Year is almost upon us and what better way to start it than by knowing your financial goals are clearly outlined, ensuring next year is your best year yet!
Before you start planning ways to spend your next pay cheque, have a look at the following tips that will help you set financial goals with the most benefits:
1. Write them down
- How big or small are your goals?
- Create a list of your goals and define them (short or long-term) – eg school fees, home renovations, buying a car, settling debt, etc
- Don’t be afraid to be specific
- Give each goal a time span in which it should be achieved
2. Settle debt
- What current debt do you still have?
- Make a list of all your outstanding debt to ensure it is paid on time
- Remember to contact your credit provider , as soon as possible, if you are unable to meet your financial agreement/obligations for that month
- Aim to pay your debt ahead or on time; this will improve your credit profile
- Open a savings account and treat it as an emergency fund for unplanned expenses
- Ensure that you save money each month (10 – 20% of your income)
- If you have a surplus from budgeting each month, consider saving it or putting it towards your retirement fund
4. Action Plan
- How do you plan on achieving these goals you have set out?
- Compile an action plan to note how you will achieve each goal
- Once you have written your goals, consider how you will achieve them
- Review these goals every 6 months to a year and see how far you are.
- Every goal that you have achieved should be celebrated, this will give you motivation to continue your planning