Without money, there’s only so much we can accomplish in this life.
This is why, by any good means necessary, we need to make sure to reach our financial goals.
You first need to have a vision of what you want. Next, work towards that vision by setting goals and then going into action. Most people already have goals related to money—saving more, getting out of debt, or buying something special—and in this article, we’ll explore these examples you can set for yourself, just in case you don’t have one yet.
Goal 1: Save more
You should read that as – “I will save more”. But, “Save more for what?” – You might ask. Well, you can save money for a few different things: retirement, a new car, a new house, an emergency fund, a dream vacation, education, a wedding, etc. Heck, you can even save for saving’s sake. An example of a goal you can have here is: “I will have N20 million in retirement savings in 10 years’ time.”
Goal 2: Live within my means
“Living within your means” means that you spend less money than you earn. It sounds simple enough, right? But in practice, it’s not always easy to do. This can be a good financial goal for you especially if you are currently spending more than what is coming in.
Goal 3: Pay off all my debt
For anyone who wants to improve their financial situation, paying off your debts is a pretty important goal, if not the first. Set aside enough money each month to quickly eliminate these financial burdens and start Goal 1 as soon as possible.
Goal 4: Have an emergency fund
An emergency fund is a safety net that should cover your expenses for at least three to six months, in case of an unanticipated or unavoidable expense. Decide how much you need. For example: say your current living expense is N150,000 per month (plus any bill payments). That means you’d first need around N450K – N900K in savings before adding other financial goals like a dream vacation savings into the mix.
Goal 5: Invest more
The best way to grow your money is by investing. It’s about making your money work for you by putting it into assets that grow over time, like stocks or bonds. Investing isn’t just for rich people; it’s for anyone who wants to take control of their finances and build a more secure future.
Goal 6: Start a second income stream
This is pretty much self-explanatory. Relying on a single source of income is tantamount to financial suicide.
Goal 7: Learn about finance
Another worthy finance goal is to become more knowledgeable about how money works. Have financial literacy on topics such as investment basics, stocks vs bonds, etc. How about you write down this goal: “I will read 5 books on personal finance this year.”
If you’re new to personal finance, be a consistent reader of the Cowrywise blog, where you learn everything you need to know about planning and securing your financial future from people just like you.
Also, there is a myriad of books you can read such as:
- Your Money or Your Life by Vicki Robin and Joe Dominguez (written in 1992)
- The Richest Man in Babylon by George S. Clason (written in 1926)
- The Automatic Millionaire by David Bach (first published in 2004)
- The Psychology of Money: Timeless lessons on wealth, greed, and happiness by Morgan Housel (2020)
- Ope’s Money Diary: 21 Short Stories on How Money Works by Ope from Cowrywise (2022)
It’s easy to get overwhelmed by all the things you need to accomplish in this life when it comes to your finances. But if you break things down into chunks and set goals for each piece, it becomes a lot more manageable. We hope these examples have given you some starting ideas on how to do just that—and we promise that with practice, you’ll be able to reach any kind of financial goals you set for yourself!