NLNG Corporate Teamwork banner First bank FinTech summit Fidelity bank card banner Emerald Energy Institute Camano banner

The ultimate SMART way to achieve financial freedom

By Adriaan Pask on 10/06/2019

Gmail icon

Views: 1,263

 •Adriaan Pask
•Adriaan Pask

Whatever being financially free means to you, one thing is certain – financial freedom is not a short-term goal. Reaching this goal can be daunting – especially when volatile markets make headlines. So, how do you ensure your financial vision becomes a reality?

Step 1: Be SMART

For this exercise we have adapted the widely used goal setting acronym, SMART. It can be applied successfully to your personal goals, especially financial ones. As Elbert Hubbard, an American philosopher, explained, “Many people fail in life, not for lack of ability or brains or even courage, but simply because they have never organised their energies around a goal.”

Specific: When drawing up your goals, don’t say “I want to retire comfortably” or “I want to handle emergencies stress free”. Be specific. Calculate the amount to which your vision equates. For instance, the rule of thumb is to have three months’ salary saved up for emergencies.

Measurable: It is important to take regular stock of how your investments are doing to ensure that you are still on track to realise your vision. Here are only a few ways you can calculate this:

Calculate the return on investment (ROI).

Calculate the compound annual growth rate (CAGR).

Compare it to its benchmark to see if your investment is continuously outperforming.

Achievable: Your financial freedom vision is entirely personal. If you set a goal that’s too high to reach, you’ll soon stumble and give up. Start with what you can put away and reassess when your circumstances change. However, don’t be too soft either. Choose a goal that challenges you but won’t break you financially.

Relevant: Before you decide on an investment plan and how to move forward, do the research; it’s vital to your success. Never invest blindly or based on gut feeling – you might get lucky, but often you’ll lose. Don’t try to predict the market. Any expert that’s worth their salt will tell you it’s impossible and, again, the chances of being wrong are overwhelmingly high.

Timely: Unfortunately, reaching financial freedom is not as simple as winning the lotto – you can’t expect to just be making ends meet the one day, and be a millionaire the next. (Also, the chances of winning the lotto are about one in 20,358,520.) Reaching your financial goals will take time. It can be terrifying to leave your money in an investment when the markets perform poorly, but recessions and pullbacks are normal occurrences, and they too will pass. Before shifting your funds around, make sure it is necessary and in your best interest in the long run. If you move your money around regularly, you’ll become a victim of sequence risk and harm your investment’s life cycle.

Step 2: Ask for help

Sticking to and achieving your financial vision becomes much easier when there is someone at your side. Someone who can help guide and spend time and energy with you to investigate which products and avenues suit your needs better, and who you can hold accountable. There is no quick fix to achieving financial freedom. It requires a long-term strategy, but if successful, you’ll reap endless rewards.

•Adriaan Pask is the chief investment officer at PSG Wealth.

Source News Express

Posted 10/06/2019 1:05:59 PM

 

 

CLASSIFIED ADS

 

You may also like...
APC ward executive passes vote of confidence on...

Nigerian gunmen attack Cameroon border post

11 perish in Niger accident, 16 injured

25th Royal Anniversary: Sarki Zazzau Suleja a dependable...

Group identifies reason for renewed Boko Haram attacks...

Stop parading yourself as ACC National Chairman, court...

Sanusi urges Muslims to be in tune with...

Nigeria to acquire $550m new satellites from China...

Insecurity: PFN urges Southeast governors to sit up...

Biafra: 2 shot as police invades MASSOB secretariat...

Obiano, like Obi before him, must be an...

20 million children need immediate aid, UNICEF says...

 

Latest News FG to partner innovative companies on the national cooperative housing scheme Kwara explains temporary cut in water supply Onitsha Fire: Time for govt to rev up its rapid response strategy — CLO Court fixes Nov. 4 for hearing of Lokpobiri’s suit challenging Bayelsa APC guber primary No fresh appointment has been made by Abia Poly Management — Rector Oshiomhole's man threatens suicide Border closure: Smugglers devise fresh tactics 20 wounded, many feared dead in wedding blast CAN blasts MURIC for allegedly associating Christ with kidnapping Fed Poly expels 66 students for alleged exam malpractice Troops capture cache of arms/equipment of terrorists, arrest logistics supplier Border closure: Used vehicles flood Apapa port

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (551,541 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (447,603 views) Shameless Genevieve Nnaji exposes breasts in public (395,209 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (330,912 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (299,166 views) 10 cars more expensive than Jets (265,092 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (256,195 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (253,528 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (235,023 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (221,194 views) Lagos plane crash: Journalist releases victims’ names (198,685 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (195,885 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (105) Business & Economy (4,498) Business Verdict (85) Columnists (1,130) Complaints & Requests (96) Enterprise & Opportunities (218) Entertainment (691) Features (833) Global Business Monitor (467) ICT Monitor (66) International (4,088) Interview (204) Live Commentary (30) Love Matters (174) Maggie's Blog (452) News (52,794) Opinion (1,398) Pidgin (17) Politics (11,583) Religion (1,111) Sports (2,196) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera