For many people, achieving financial freedom is a lifelong priority, but for many people also, what it takes to accomplish that is often lost on them.
In this article, I will present in straightforward terms some initiatives to take for a smooth journey to financial wellness.
Financial awareness is one’s ability to understand and use financial skills effectively, whiles financial wellness is building confidence in knowing how to use your money and making sure that you’re putting some aside for a rainy day.
When you are financially unwell, it limits your options; you often simply have to take what is handed to you without a choice even to reject it. You cannot afford the things you want, so you have to settle for less. Also, you realize that you are constantly anxious about money because you probably owe many people or do not have enough money to afford the things you need.
To have complete financial wellness means you have choices, enjoy peace of mind, and work towards the desired future.
The first step in achieving financial wellness is starting with a plan. Do not wait to get money before you start planning. Always start with a smart, specific, measurable, attainable, realistic, and time-bound plan.
A quote says that ‘rich is not a goal; 5 million in five years is. It is essential to ensure that your goals are specific and not ambiguous. This way, you can put together the necessary measures to achieve it. It does not have to be static, so you can always change it when necessary.
Once you have that plan, you need to look at your current state, and a budget is a sure way to determine where you are. A budget is simply telling your money where to go instead of wondering where it went. Give purpose to every cedi you earn; otherwise, you will end up with many unplanned expenses.
We often say that we don’t have money to save, invest, or do anything at all simply because we don’t have a budget. It is so important in current times to live by a budget to enable you to identify the ‘holes in your pocket’ and make saving possible. Your budget will tell you whether you live within or above your mean. Wherever you find yourself make sure savings is right on top of your expense list.
The next important thing to do is manage your debt situation. The times we are in are not a time to buy to impress. Make sure your borrowing is purposeful and brings you value now and in the future. The cost of borrowing has risen significantly; therefore, if you are not unwinding some of your loan positions, you may be hurting your future self. Seek expert help managing your debt situation if you need to, but by all means, buy what is required; the nice to have can wait.
It is also essential to develop a personal investment portfolio. A private investment portfolio is a plan that is unique to you as an individual. At Stanbic Investment Management Services (SIMS), we believe no one size fits all; even though solutions are similar, everyone is different, and so is their investment objective.
The overarching theme is engaging our clients in understanding their current situation and what they want to achieve. Financial planning is accessible to all through most financial institutions. Do not hesitate to ask for counsel before deciding on what works for you, for there is safety in a multitude of counsel.
It is crucial for one to be financially aware; as it is said, ‘when it comes to your finances, ignorance is not bliss. The less you know, the more you pay.’ Just like your mental, physical and spiritual well-being, it can cost you a lot if you do not take care of your financial well-being.
Be deliberate about becoming financially aware and cultivating the proper habits for financial wellness to enjoy a stress-free financial future. Please do not wait until it is too late before you start considering your financial health. Start today.
Miriam Maku Amissah, Head, Client Experience – Stanbic Investment Management Services
