What is it that you want to achieve in the next six months, one year, two years, five years? Is it to acquire a plot of land in a choice location? Are you planning on setting up your own business? Do you want to start a building project? Or you want to start a family?

Whatever it is, you need to clearly define that financial goal.

Defining your financial goal also entails that you try to put a cost to it. Depending on the goal, putting a cost to it may not necessarily be the entire capital layout. Of course, if you want to start a building project, for instance, it is almost impracticable to set aside all the money that you will need from foundation to finish, so you may have to do this in phases. It is only when you have an idea of how much you may need to actualize your financial goal that you are able to plan on how to set aside that money.

As you already know, it is easier to spend money than to save. That’s why many people purchase items because they feel it’s cool and it enhances their appearance without factoring the expenses into their financial plans.

Here is what I have to say: You work really hard to earn money, so you should also make conscious effort to ensure the money is properly planned for. Where you place your value, that’s where you spend your money. If you place your value on your set goals, that is also where you would channel your finances with proper planning. But If your value is placed on expensive outfits or impressive gadgets, you would find yourself spending your money there without making budgets for it.

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Financial decisions are made with the end point in mind. A goal without a plan is just a wish, so goes an adage. For instance, a man who has set a goal to mop up funds for his building project goes to work to accomplish his goal. He must see to it that he cultivates a regular saving habit suitable for him. This can be done on a monthly, quarterly, half-yearly or yearly basis. Having put a figure to the amount he may be needing, he will then have a particular amount in mind. This he must do in such a way that it doesn’t affect the other areas of his life that need finance. In doing so, he must be highly disciplined with his finance which entails giving up on unnecessary spending.

In the course of my job as a financial advisor, I have had the privilege of offering financial advice to people who have remained grateful that they achieved their goals as a result of the advice.

All successful people are goal-oriented. They believe in cause and effect. They are clear about what they want and are focused on achieving it. (They always define the effect they want to see and trace it back to the cause. By so doing, they achieve the effect they want by duplicating the cause.)

Brian Tracy, a motivational public speaker and self-developed author, in his book GOALS, says, “Without goals, you drift and flow on the current of life, and with goals, you fly like an arrow straight and right at your target.”

He who fails to plan to achieve financial success plans to fail. Individuals must clearly define objectives they intend to achieve. They must develop a comprehensive plan that outlines income, expenses and savings. By engaging in effective financial planning, individuals gain clarity on their financial position, stay focused and allocate their resources effectively.