Considerations for New Year Financial Plan/Goals
Annual financial planning gives everyone the opportunity to formally review our goals, update them, and review the progress made since last year. This is another opportunity to formulate your financial goals so you can get or remain on a solid financial ground. Here are some few recommended ideas to help you go through 2024 comfortably within your means, manage your financial challenges, and save for retirement.
What are financial goals?
Financial Goals are personal to every individual and depend on the stage in life one is, the individual ambitions, commitments, and personal finances. Setting up a financial plan in place will leave you in better position to create a budget and stick with it, build an emergency fund, and pay or reduce the credit card debt that is holding you back.
Financial goals can be short, medium, or long-term. These could range from; Saving for a deposit for a house; Achieve financial security and retire early; Achieve a certain amount in your pension pot by the time you retire.
Suggested ideas to Set a Great Financial Goal for 2024
- Reflect on the past: This may involve thinking about what worked in the past, what still needs some more work? And how you achieved your previous financial goals?
- Set a Budget: Setting a budget makes sure you are living a lifestyle that is sustainable and in line with your future plans. Budget guide anyone with your spending, investment, and sources of income. Once a budget is in place, checking your incoming and outgoing becomes easy and then deal with your debt by looking at any debt you have on things like credit and store cards or any unsecured debt.
- Set priorities: Look at the long-term and short-term future and consider what you want your lifestyle to look like. How can you balance your wants and needs? What one or two goals are most important to you to begin with?
- Aim at Achieving financial security: The aim is to have enough money so that you and your family are comfortable. This includes being able to afford to protect yourself and your family should the worst happen. Some products that you might want to consider include Income protection insurance, Life insurance and Private health insurance.
- Risk Protection: Unfortunately, life can sometimes bring, unexpected events which do get in the way of your plans. That is why you would need to build up an emergency fund and consider protection products such as Income protection, Critical Illness and Life insurance.
- Be realistic: Use SMART goals setting – Make sure your goals are Specific, Measurable, Achievable, Relevant and Time-bound.
- Keep things updated: Once you have a financial plan in place, you will need to review it regularly to make sure you are meeting your targeted goals or when things in your life change.
- Seek the expert’s advice. There are a ton of resources and experienced professionals out there that can help you make strong financial resolutions – now’s a great time to reach out!
- Review your retirements – Retire early or go part time: Set an early retirement as a new financial goal after you have reassessed your priorities, reducing or paying off your debts, including your mortgage, and building up a bigger pension pot than your previous target.
Putting a financial plan in place shouldn’t have to be daunting task. Just break it down into a few simple steps or more importantly seek the help of a qualified financial planner.
By Kwasi A. Obuor-Asimpih,
(MLIBF, CPFA, CMA)
CEO & Financial Planning Consultant