It's getting to the end of the year, and it is common to find individuals reminiscing on how they've spent the year, and what they have or have not achieved since the year began, it's also normal to probably achieve some and have a little others left where you need to put it more work or re-strategize in achieving your goals.
A friend of mine visited recently and saw how I have added new tools and machines to help me with my job as a fashion designer, these are a bit expensive, and then she went on talking about how I have hit a jackpot and refuse to let her know, saying she also had plans at the beginning of the year, but expenses and not remembering when the money is at hand, because impulse spending also takes over, makinge her not to achieve that goal. Sadly, this is the case for so many of us, I used to be in that position as well until I realized that setting goals is more than just saying it or writing it out, there are some principles to follow to make our money work for us the way we desire. The lack of setting goals will lead to spending unnecessary, no matter how tight you are on spending, when you don't set a goal it's easy to fall into a financial crisis in the long run, don't fall into the category that works all year long without nothing to show at the end of the year.
To start with, when setting goals, classify them into short, middle, and long-term goals. This gives you more clarity and know how to focus on each of your goals.
Making your money work for you,
Short-term goals
These are the goals you work on immediately, it could be for a few months, weeks, or even days, it makes us concentrate on working toward achieving this goal, and we become more focused and less distracted compared to when there are other things distracting us, it's easier to achieve short term goals as they also for shorter duration.
Pay your debt
A debtor is hardly financially free especially when you run in circles of debt, before your money can be helpful to you you have to pay up
the debt, by coming up with a plan that will be easy for you to follow without fail, it's only when you are debt-free, that you become financially free to set a financial goal
After writing out your financial goals, the next thing should be writing out plans for achieving those goals and that is what budgeting does, it helps monitor the inflow and outflow of income and expenses and also enables us to know which needs to be cut short, to create more chance for savings and achieving your planned out goal.
Have an emergency fund saved
I have had situations where I was saving towards a goal and an unexpected expenses slowed me down, or even disrupted my zeal into achieving such a goal, when we cultivate the habit of saving for an emergency, we are less likely to feel destabilized when crises creep in on us. It is advised to have at least 3-6 months of living expenses saved for emergencies and an easier way to get this done is by creating a savings account where an automatic payment can be set to that account, we could easily forget if done manually.
Mid-term goals*
This can come in between a short and long-term goals improving a career, paying for a house, or investing in any property, it takes more time compared to the short
term goal, and can be in progress while achieving the short-term goals, the main aim is to stay on course even while achieving other goals.
"Long-term goals*
Retirement plans can be categorized under long term goal, This goal takes the longest time and requires more patience and focus, there are insurance company that makes it easy by saving for some years, won't it be satisfying to retire early to the wealth you took so many years saving and your investment, some certain jobs offer this option of saving a little percentage of your monthly earning as retirement fund, If your job doesn't, even if it does, still put this long-term goal in plan and don't feel you can't do it since you are not earning a huge sum, a lot of retirees are going through difficult stage right now, just for this same excuse. Make your money work for you even when you retire
Conclusion
There are so many ways we can make our money work for us in achieving our desires and financial goals, but will require a little more effort from us, and remember, not just by writing out the goals but by putting other necessary steps in place to make it achievable without forgetting to be consistent as well.