Continued from the last post on Tips on Setting Financial Goals This Year.
On Investments and Savings;
- Do as much research as you can: do your due diligence, read articles, opinion pieces, previous financial statements if you can, ask questions. Do your research!
- Take educated Risks: If you feel really good about it, don’t wait for the “right time”, just go for it.
- Only invest in what you understand: I shared here how I wanted to invest in crypto but didn’t understand it and never got into it because I didn’t understand how it worked. If you are interested in crypto currencies or forex trading, take the time out to understand it fully before you invest in it. PS: If you are interested in learning about cryptocurrencies, check out this show.
- Find out what kind of investor you are: Are you interested in short term gains, do you buy stocks of companies you like, are you looking to make gains on under valued stocks, are you a safe investor or beginner, are you more interested in investing in the African continent? If you are starting your investment journey, especially in the stock market, this post is a good place to start.
- Consider having different savings buckets for the different things you are saving for.
- Automate your savings with the minimum amount you will feel comfortable putting down every month, you could always adjust this through the year. I wrote about all the tips that have helped me save through the years here.
On Life in general
- Be honest with yourself and identify what could hinder you from getting to your goals. Is it eating out a lot, or spending so much on uber, are you an impulsive spender? identifying your spending triggers could help you create safeguards for those triggers and also keep you in check. For example, if you find that seeing money in your bank account makes you want to spend it, you might consider saving first or having a separate bank account to ‘hide’ your savings so you don’t see the money.
- Don’t get pressurized to do something you do not want to do, especially when it comes to your money. Don’t listen to the buy this or that stock nudges if you really are not interested in them.
- Think of your major expenses while you budget and prepare for them: If you have dental work to get done, trips to take, or a wedding to plan or attend, include that in your budget and save for it to reduce the financial pressures that could occur when those events come around. For example, if you have a destination wedding to attend in June, it might be a smart idea to start putting down money for the trip now.
This year unlike many other years is filled with so much uncertainty. We are all hopeful that things will go back to normal in the nearest future but, predictions on economies are not looking so great as some Economists predict that the effects of the pandemic will be felt in full this year. Government spending is set to go up for developing countries and high inflation and unemployment rates are predicted to happen in the nearest future. What does this mean for you? It means there could be an opportunity or challenge for you. Interest rates are at their lows in most developing countries so this could be a good time to lock in a good mortgage rate on a property, inflation could also hike the prices of normal goods and make your dollar not go far as it used to. All this to say, this isn’t a time to be reckless with your finances.
Finally, enjoy the process. Reward yourself with little treats and celebrate your mini milestones!
PS: I have a savings challenge that is going on right now, you can sign up for it on here!
You got this, I believe in you!