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Elizabeth Nkukuu

Most of us are now getting back to our normal lives after the holidays and our obligations are staring at us.

As we go through the year and as we make the new years resolutions one of the places that we might need to get right when it comes to resolutions is matters money and finances.

Times might have been tough over the last two or so years for most of us but the aim is now to get it right as we go through this year.  

Preparing for any eventualities as we start the year is key and some of the key things that we might want to ensure is that first we can comfortably pay  bills into the future, two, we have an emergency fund incase of any eventuality, the recommendation is now at least one year of your living expenses and three  putting aside some money for retirement.

We all have our very unique circumstances but there are general guiding principles that would help us when walking through the journey of financial freedom. Here are some the steps you might need to follow:

i. Understand yourself and your goals: we are all unique and what matters to one person might not be so for someone else.

The general levels of wealth creation could be roughly the same but circumstances vary.

In coming up with the goals always ensure to follow the SMART (Specific, Measurable, Attainable, Relevant, Time bound) framework so that you are giving yourself time to execute and not too long to loose sight.

One should always relook at their goals and see if they need to change the course of action and the beginning of the year is always a good time to do this.

ii. Document your goals: Many a time we do not achieve that which we need to because we have the goals as fluid.

One beauty about documenting our goals is that it acts like a commitment. For most people once we have committed despite the fact that we can stray we always come back and push towards the committed goals.

iii. Remain consistent and discipline: One of the biggest challenges to goal attainment is the lack of consistency, once we allow ourselves to slack behind we end up being too far from what we wanted to get to.

To help build this one can either have some accountability partners and with the advancement in technology, adoption of technology can be of great help.

If for example, you want to consistently save, adoption of standing orders towards investments will help you maintain the discipline.

iv. Understand alternative ways of investing: Many a time we do not achieve our goals because we do not understand the alternatives we have and their advantages or disadvantages.

We can use various investment products for various goals depending on the time horizon, capital to invest, value of the goals to be achieved etc.

v. Look for alternative sources of income: Some of us have unique talents that we can be able to monetise.

Learning how we can be able to monetise this helps us in generating more income that can be poured towards attaining our goals.

vi. Avoid getting into debt unnecessarily: For some of us we have a challenge with debt and this is because we very well live beyond our means.

One of the best ways to avoid debt is sellf-acceptance, avoiding consumption temptations and investing in emergency funds to cater for nay eventualities.

Anything worth doing requires time and resource investments and since for all of us financial well-being is key there are some things we must get right this year.

i. Investing in self: With the internet, social media, newspapers and all other sources of information one should not confine themselves to what they only know today.

One of the ways to invest in self is seeking to better ourselves on matters pertaining finance and investments.

Being curious on the ways and means of creating wealth is the starting point and from there one can now seek information.

There are many free and paid webinars that can help one raise their curiosity and from there they can dig deeper into what would be interesting.

ii. Investing in right relationships: It is often said we are a sum total of the people we hang around.

It is therefore important to select the people we hang around with and this could be the year that we look at being around people who challenge us and make us better not only to get things from them but people who together we can uplift each other.

Finances play a key central role as the individual lives their life. Irrespective of our current situation we can make the future count by making the right money choices.

The aim is to start engaging the process and in so doing you will discover what you have and what you need to get to your destination.

The writer is a  personal finance expert. [email protected]