How to achieve them money goals

What money goals?

I recently spoke to someone who had an early midlife crisis – she spent more than 10 years living for the moment, which was awesome at the time – but it came at a cost of her future self. She had no money and no career, nor a prospect of getting these. 

This is where goals and KPIs come in most effectively – it’s a path for you to follow to get you from where you are to where you want to be. 

Things to consider for your money goals

Your number

Let’s make one thing clear: financial goals means different things for different people. Grant Sabatier from https://millennialmoney.com/ explains that the most important factor / goal of your personal finances needs to be your number. Each person should have a number or a goal that they would want to reach.  Here’s some examples:

  • Become debt free
  • Own 10 properties
  • Have R 1 000 000 in the bank 
  • Having R x in passive income to cover all monthly expenses
  • Have a nett worth of R x

Note that goals do change, so don’t think you have arrived once you have achieved your number!

Aspirations, gifts and talents

Don’t set goals for yourself that you cannot achieve, due to them not being aligned with your talents and gifts. Find ways that your gifts and talents compliment the path that you want to travel. 

Very few people has the natural tendency to work well with money – and even those who do needs to still set goals and align themselves with it. For the rest of us, including myself, we have proven models that will help you get there.

Strategic models for moving forward

People have developed models over time to help you achieve your financial goals. I define a model as a proven system or practice that will help you reach your goal. Here is some examples:

  • Compound interest
    • Paying off debt sooner than the loan term
    • Investing in dividend stocks
  • Rental property
    • Leveraging other people’s money 

Think of models as magic slot machines – the more money you put in, the more you will get out. The question is not how much you put in, the question is how much you have to put into the slot machine!

Take the time to research models – and how you can work these into your everyday life. 

Note that some models are there to take your money, such as many financial ‘vehicles’ – before you invest, check out all fees and fees of fees and other things that might impact your investment returns.

The top 9 goals to achieve in personal finance

For your convenience, if one of these tackle your fancy, you can check some of the links below – they will give you more info for further reading. Note they are not in any specific order, but all of these will make your financial health better.

Become debt free

Free yourself from the things that eats your money. Setup a recurring payment that’s bigger than your minimum payment or selll stuff to pay it off. Check my beginner’s guide here

Get an emergency fund

Set money to the side for in case of a crisis hits. As a bonus, if you have a flexi bond, save the money in there! For more info, check my post here

Get your expenses in check

As much as I hate the word budgeting, I know we need to keep the money from hemorrhaging from our wallets – or else end up in financial ruin. Here’s a post with info on how to post mortem and plan from there!

Plan for (early) retirement

This is not only investing, but also checking spending habits, needs and wants when you will retire. Take time and plan for this

Invest

Take money and invest it in places that can offer a return above the 7% that the bank offers. Check out property, stocks or other investment vehicles.

Plan to die

Get your house in order – have a signed testament, list all your assets and liabilities and get life insurance that will cover your debt and funeral so you can die happy.

Diversify

Look into other sources of income, not just your salary, property or your mom. It takes some research, but is so much worth negating the risk!

Improve your credit score

Pay your debt that is in arrears and negotiate with your debtors. You can check your credit score for free with many different companies, and they will (at a fee) help you to up your score.

Upskill

Spend time (and even money) to upskill your financial intelligence. Remember your money is your responsibility 

Setting and monitoring financial goals

Once you have your goals, you need to devise a plan to get the ball rolling. You need to plan your journey.

As Oscar Wilde said: “I can resist anything except temptation” – Make sure you don’t put yourself in a place that will allow your goals and dreams to die. Here’s some ways you can add little reminders in for yourself:

  • Stick your goals on your fridge, the inside of your wardrobe 
  • Keep a card in your wallet that you can see what you are working towards
  • Change your mobile phone’s background with something that will remind you of where you want to be
  • Take a time out each week (preferrably each day) to check out what’s happening in your finances
  • Find ways to reward yourself for achieving your goals

Conclusion: a story from my own life

In conclusion, I would like to tell you about one of my personal financial goals for 2019: I wanted to pay off one of my investment properties – I calculated the amount I would need to pay in to pay it off within the first 6 months of 2019, and calculated financially what this would take. I found ways to make sure this happened – and it’s now April, and it’s paid off.

I am not super human – I am just a regular guy that decided to upskill my self and learn about property and money. 

I know you can do the same if you are willing to commit to the process.

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This Post Has One Comment

  1. Afrika FIRE

    Thanks for the awesome post!

    Always find it tough to find that balance between having fun and the saving ratio, starting to find a balance as I go

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