Setting goals is the first step in turning the invisible into the visible. –Tony Robbins The previous article delved into money personalities. Once you understand what your personality is, what next? It may be important to set goals. It is one thing to know what your money personality is, but goals help you prioritize your monetary needs, therefore spend your money wisely. Before getting into goal setting, it is important to know what a goal is. There are very many definitions of what a goal is. I will focus on two. The dictionary defines a goal as the object of a person’s ambition or effor ..read more

The festive season is upon us once more, yet we may find ourselves spending beyond our means only to greet the new year with empty pockets. Below find a list of tips that may help you enjoy this season without the stress of entering 2022 broke. 1. Goal Setting December comes every year and is therefore easy to plan for. This involves figuring out exactly what your December plans will be. Would you like to travel? Where to? Are there any purchases you would like to make? If so, what are they? Having clear goals allows you to have a clear picture of what you want for Christmas. 2. Budgeting Thi ..read more

Debt Debt is the amount borrowed by one party from another. It is a liability. As such, it has to be taken into account as one calculates their net worth. Categories of Debt Secured Debt: Debt backed by an asset for collateral purposes. For example, one may put their house up as collateral in order to get a loan for business purposes. In the event of default, the house would get repossessed by the bank. Unsecured Debt: Debt that lacks any collateral. One is still contractually bound to pay the loan or may be sued in the event of default. Revolving Debt: This is an agreement made between a le ..read more

The net worth is the difference between i.e. your assets, and what you owe i.e. your liabilities. It is a quantitative measure of your economic status. How to Calculate Net Worth Assets An asset is anything that is owned and has monetary value. In order to calculate one’s net worth, one has to first establish the value of their assets for example a car, real estate, stocks and securities, savings account, cash, retirement account, valuables such as jewelry and art. Liabilities Liabilities are obligations that deplete resources. It’s what you owe. One also needs to calculate the value of their ..read more

Retirement’s the most wonderful thing I get to enjoy all the things I never stopped to notice on the way up. After an extraordinary life, it’s time to enjoy my retirement. –Patrick Macnee Definition Wikipedia – Retirement is the withdrawal from one’s position or occupation or from one’s active working lie. Cambridge Dictionary – Retirement is the act of leaving your job and stopping working, usually because you are old. Retirement is an important part of life because ageing is inevitable. As such, it is important to plan for it. Why Plan for Retirement? Medical Emergencies: It is safe to a ..read more

ccording to Investopedia, savings are the amount left over after an individual’s consumer expenditure is subtracted from the amount of disposable income earned in a given period of time. These are monies you put aside for future use rather than spending it immediately. Savings are important in helping one manage their finances. Importance of Savings Emergency cushion – Emergencies are always cropping up in our daily lives. Savings give one peace of mind as you know that there are funds stored away, in case of any emergencies that may come up for example, medical emergencies. Retirement – It ..read more

If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed. –Edmund Burke A budget is a plan to show how much money a person or organization will earn and how much they will need or be able to spend (Cambridge Dictionary). It’s an estimation of revenue and expenses over a specified future period of time and is utilized by governments, businesses and individuals. Budgets are important tools in managing one’s wealth and should be understood by all. There are however, a couple of myths that surround budgeting, that discourage people from wanting to know mo ..read more

Money, that which some believe to be the root of all evil. Others, however, see it as a tool to make change. Money continues to baffle all. It is something that most desire, people cannot get enough of it. Yet, it seems to always slip through ones fingers. Money demands respect, or it will be a great cause of pain in your life. Money is something that can be used to achieve great things, but only if it is used in the right way. Before one gets to know how to use money effectively, one has to understand what their money personality is. People are different and therefore their spending habits a ..read more