For many years now, despite the world economy upheavals, one works hard to grow their finances. If one lacks knowledge and tactics to get to the right path, financial success will only remain a dream. It is better to understand, leaving huge accounts to lay quietly at the bank, only makes the bank productive and squeeze your financial growth spurt. Learn how to jerk that feeling of comfort out of your mind and grow your cent outside the bank.
Take calculated risks on investments, businesses, and networking. I remember when I was an intern, a couple of years ago, in one of the leading companies of Digital Congress and Audiovisual designing and installation in Kenya. One of the directors kept telling me “ rather incubate money in business than the deposit to the bank.” In a matter of time, your business will hatch your cents while the bank will transfer back your money intact.
Growing your cent is a journey that requires goals, persistence, and commitment for achievement. Strain your stretch out of your comfort zone and upgrade your daily performances. With this, we established two great methods to begin with aiming to grow your finances.
Set financial goals You should plan out for your finances and do a regular revisit to your plans. Financial goals vary from one individual to another while they’re relative factor to one’s income, saving rates and age. To grow your finances successfully, treat money as a tool that you critically need to pursue your dreams. Thus, the urge to set out your financial goals.
In this section we will look out on two things namely;
- Types of financial goals
- Steps to plan for your goals
- Types of financial goals
Typically, financial goals form a structure of three different types:
1.1.Short-term financial goals: These are plans based on money for achievement within a period of 6 months to 1 year. (6monts-1year)
1.2. Medium-term financial goals: Financial plans which need their fulfillment a time horizon of between 1-5 years of commitment. (1-5 years)
1.3. Long-term financial goals: These are financial goals to be achieved beyond a row of 5 years and above. (5 &above years)
- Steps to plan for your financial goals
Any plan needs logistics on how to be carried out. When setting out financial goals, you can use these seven simple steps:
- Write down your goals. Make a massive list of what you wish to achieve.
- Classify your goals into two slots, NEEDS and WANTS. At this point, you can engage a family member and discuss what goals out of your list should fall.
- Prioritize your needs. Start working on them
- Outline their time frame. How long does it require to achieve them? Classify them as short-term, medium-term, or long-term goals, as discussed above.
- Establish the budget. Get to know how much does it require for each. What saving rate you need to adjust on to achieve that goal.
- Apply SMART strategy; for every goal plan, you need to be smart, set Specific, Measurable, Attainable, Realistic goals, and work within a Timeframe.
- Monitor your progress. Carry out regular follow-ups to monitor the process. Do adjustments and improvements accordingly.
- Perform to reclaim your cent
In the beginning, I mentioned economic growth spurt brought about by settling in your comfort zone. Financial growth is boundless. You recently got a promotion at the workplace, don’t relax for it, start aiming for; higher position soon. You achieved your short-term goal last week, set a medium-termed goal today.
How can you perform to reclaim your cent;
- No payroll is worth your skills.
Don’t get it twisted! Whatever you get on your paycheck at the end of every month is not equivalent to the worth of your skills/knowledge; instead, it is an appreciation of work well done. Make use of that opportunity, to improve your performances and watch your gratitude increase.
- Become financial literate
For your financial well-being, acquire proper knowledge and skills to manage your financial resources effectively. Attend seminars and conferences regarding how to manage personal finances. Read finance literature.
- Monitor your spending rate
Plan your spending budget and stick to it to save some extra money to support your goals. Stop spending on things that are not needs for you.
- Learn every day
If you stop learning, you start dying. Be open-minded and learn every day on set goals. Get literature of your interest and source for knowledge.