Did you achieve all of your financial resolutions for 2024?
It’s the start of another year! You probably have new goals and resolutions for your career, health, relationships, retirement, and finances, and you’re set to hit the ground running.
While it's easy to set goals and get excited about them, the challenge lies in bringing them to fruition. When it comes to finances, many factors like a lack of discipline and poor financial knowledge can water down your plans.
In this article, we’ll show you seven strategies that will help you withstand adversity and help you crush your financial goals in 2025.
Break Big Goals into Smaller Milestones
It's okay to challenge yourself and set your eyes on big prizes; however, It's more effective when you break these big goals into bits because big goals can be intimidating.
You could split large long-term goals into clear weekly, monthly, or quarterly targets. This will keep you motivated and make progress measurable and less overwhelming. For example, if you planned to save ₦500,000 by year-end, aim to save ₦40,000 every month instead.
Additionally, it is important to be realistic with your goals. Assuming you earn an accumulative income of ₦300,000 per month, it’s unrealistic to expect to save ₦500,000. Perhaps a more realistic target would be ₦100,000-₦150,000.
When your eyes are set on realistic goals broken into bits, they become achievable. After all, small drops make an ocean.
Use Tools
Technology is still in the business of making life easy, and you can leverage it for your finances this year. Some tools can help you track your investments and safely lock away money so you’re not tempted to touch it prematurely.
In fact, it's now easier to automate deductions for savings, much like how contributory pension schemes work. The onus falls on you to identify the tools that match your needs and maximize them to your advantage.
Stay Disciplined
One of the biggest challenges in managing finances is the temptation to spend money that’s meant for other things. To combat this, consider setting up separate accounts or using platforms that make it harder to access funds.
Just like with automatic pension deductions, you can have a fixed amount scheduled for transfer to a savings account every month. This removes the temptation to spend the money and ensures it’s out of sight and reach.
Ask for Help
You do not have to execute your financial plans, especially when you’re not well-versed in the technicalities behind them. You can seek advice from financial experts and retirement professionals who will provide insights and help you plan effectively.
If you need an accountability partner to checkmate your progress, you can also join communities or confide in trustworthy people. Here you share your financial goals and check in regularly on your progress.
Create an Emergency Fund
One of the biggest factors that may hinder you from achieving your New Year's resolution is life’s unpredictability and emergencies. Health challenges, job loss, legal issues, or even the death of a loved one could set you back significantly.
However, when you create an emergency fund, you have something to rely on when these situations arise without necessarily disrupting your plans. Ideally, your emergency fund should cover three to six months of living expenses.
Insurance and pensions can also act as a safety net, helping you avoid financial setbacks during emergencies. Your emergency fund provides peace of mind knowing that your finances are protected in difficult times.
Reward Yourself
As you progress in the year and tick off items on your list of resolutions, it’s important to acknowledge these milestones. No matter how small these achievements are, they deserve to be celebrated.
However, ensure your rewards align with the long-term goals and do not create a setback. Assuming you hit your savings target, you can celebrate with a small, meaningful treat that wouldn't overturn the effort you've put into saving.
Doing this periodically boosts your motivation and chances of carrying on with your resolutions for the rest of the year.
Track Progress
You’ll only know for certain that you’re making progress and crushing these goals when you record the journey. Therefore, set aside time to intentionally review your progress regularly.
If you can, we recommend keeping a financial journal to document your financial health, including spending, savings, and investments. This would allow you to assess whether you’re on track, make adjustments if necessary, and celebrate the wins along the way.
Conclusion
As you prepare to win this year, remember it's not the goals that matter but how you plan to achieve them. Do not forget to use tools that can make execution easier or even speak to professionals if the need arises.
For everything related to your pensions and retirement, you can trust the Oak Pensions team of financial experts to be your partner. Oak Pensions is Nigeria's foremost pensions solution provider committed to making retirement enjoyable for everyone.
Contact the Oak Pensions team via 09087448661 or visit www.oakpensions.com to get started right away!
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