Happy Monday. May you have a productive week ahead.
It’s been rather a slow start since I return from holiday, I am still getting in the momentum of writing. Reminds me of the financial fitness journey article I wrote at the beginning of the year ( read it here). The beginning of everything is always difficult but once you have built stamina and growth , a step forward is so much better than a step backward.
What are some of the areas of your life do you need to think of building momentum?
- Savings- I noticed that once I have more than N$20 000 in my account, I am more motivated to ensure that it grows on a monthly basis. This is because in my mind, I start visualizing how close I am to my goals and I can almost see the light in the horizon and hence have the drive to keep going. For you, it does not have to be N$20 000. Find your threshold and aim to reach it and beyond. Be realistic so that you are not de-motivated. Once you reach that goal, it becomes a habit to save.
- Investing- One must understand that although saving is a good, it is not meant to increase your net worth. It is meant to be a basis for saving capital that can be later invested in something that is likely to generate higher return. I’ve noticed that I have started building some investment skills as currently my portfolio consist of a chicken farm business, driving school business, shares as well as airtime and electricity business. Instead of having the cash lying around, I put it to other use. Remember with greater risks comes great reward ( read that here)
- Paying off debt- This is where my current focus is. I hate debt that I stayed away from it until most recently when I bought the house. The thing with debt is that the system is structured in such a way that your interest paying is higher in relation to the payments you make on a monthly basis, resulting in longer repayment period and excessive interest payments. If you can learn how to attack the capital early in on your loan, you will save a lot in interest. Currently my big goal is to reduced a 20 years old period to shorter period. So if I stick to the plan, I have 27 months left. List all your debt and pay them off, starting with the smallest one first. It will free some income that you can start paying off your larger debt.
- Budgeting well – It’s funny how budgeting is really just all about how much money you get in and how much you get out. The only difficult thing is to really be honest in finding out where your money goes to and finding ways to channel it in the first three points.
Been doing pretty well at 2 & 3 lately but I am slacking on 1 and 4. What are your weakest point and what can you do to improve that?