No one cares about your financial well being more than you, so its important to have or create a financial plan for yourself. Planning your steps to financial longevity is a long-term process, not an overnight endeavor.
Creating a financial plan will ensure that you achieve all the goals you’ve set out. These can be anything from clearing your debt, to saving money, investing for retirement, creating a budget or saving for college.
In these post, I will outline all the 5 basic steps needed for creating a financial longevity especially during this economic crisis in Nigeria.
5 Planning Steps to Financial Longevity
1. Create a budget
Creating a budget is one of the first thing to do when looking for steps to financial longevity. A budget simply shows how much money you have coming in and how those funds are spent. It’s one of the most important tools in building a successful financial future, because it helps you get the most out of your money.
Regardless of economic standing or which generation you fall into, every consumer can benefit from creating and managing a budget. A budget gives people a sense of control over their money. Think of a budget as a financial foundation. Each person’s foundation is going to be different, just as each financial situation is different.
2. Determine your financial goals.
One of the most important steps to financial planning success is to determine (set) your financial goals.
Having a financial goals gives you a clear focus on what you want to achieve in order to actually accomplish it. Without a specific target to aim for, your efforts can easily become disjointed and often confusing.
When setting a financial goals, make sure your goals are well defined and prioritized accordingly no matter how long or short-term your goals is, such as planning for retirement, buying a home, paying for your child’s college tuition or buying that your dream car.
3. Start savings money
One of the best ways to save money fast and achieve a financial planning success is to create a savings goal and start saving as soon as possible.
There are various avenues people take to commence their savings journey. You can start with an online instrument like piggyvest (which offers you up to 15% interest on savings) or with a traditional savings account like banks, so you can have money that’s easily accessible.
4. Pay off your debts.
The only financial goal more important than saving and investing is paying off bad debts because debt can rob you of your income within a blink of an eye. So, its about time you get rid of your debt to enjoy financial longevity.
5. Invest early and often
If you are serious about building wealth or planning for retirement, then you’re going to need to put your money to work for you. This is where investing comes in.
Investing is a long-term planning steps to financial longevity, so you have to commit to it if you really want to see your money grow. Thanks to fintech start-ups, there are many online investment platforms in Nigeria that offers huge returns on investment.
However, before you put any of your hard-earned money into investments, it’s important to have well-defined objectives. Think about what the investment is for when you’ll need your money and what your risk tolerance.
With our ever growing needs and the tougher economy, sticking to this 5 steps to financial planning success listed in this article will help you to overcome this tougher economy and live a stress free life.