Save by prioritising financial goals
During tough economic conditions, consumers are urged to take caution when it comes to dealing with their finances.
After the announcement of Fitch’s downgrade and general pressure on the economy one of the key aspects individuals should apply is self-discipline and adopting a saving culture to ensure a rewarding financial future.
“We all like the nice things in life, but before we want to splurge on luxuries or follow fashionable trends, we need to sit down and contemplate whether we really need it and most of all if we can afford it,” says Jaquiline Pack, Executive Officer for Marketing and Corporate Communication Services at Bank Windhoek.
“Determine the order for dealing with your finances according to their relative importance. Think of what is absolutely essential for you to survive on and what you can let wait for later. It all comes down to prioritisation which is about focus on what to do with your precious earnings.”
Pack says that a good way to determine your financial goals and expenses can be to use the traditional Eisenhower prioritisation matrix, named after former American president Dwight D. Eisenhower who wanted to increase productivity.
“By adapting the matrix to focus on finances, it serves as great tool to navigate your finances effectively.”
Prioritising your finances by urgency and importance results in three quadrants with different strategies:
1. Do First! First focus on important financial obligations that need to be met within a specific timeframe. Examples of this could be your housing, contribution to your pension fund and daily expenses. Also making setting aside a monthly amount in a savings or investment account, should be your first priority on payday.
2. Schedule: Important, but not-so-urgent obligations that you can schedule or save for, like maintenance of your vehicle or renovating your house. When the time comes, and you have saved enough, you will be able to meet these expenses.
3. Don’t do: What’s neither urgent nor important, don’t do at all. This includes getting rid of unhealthy habits that are draining your hard earned money. Just quit that habit and instead use those funds to add to your growing savings account.
“By applying self-discipline and practicing these three steps you will not only be able to plan for a secure financial future, but also reap these rewards” says Pack.
After the announcement of Fitch’s downgrade and general pressure on the economy one of the key aspects individuals should apply is self-discipline and adopting a saving culture to ensure a rewarding financial future.
“We all like the nice things in life, but before we want to splurge on luxuries or follow fashionable trends, we need to sit down and contemplate whether we really need it and most of all if we can afford it,” says Jaquiline Pack, Executive Officer for Marketing and Corporate Communication Services at Bank Windhoek.
“Determine the order for dealing with your finances according to their relative importance. Think of what is absolutely essential for you to survive on and what you can let wait for later. It all comes down to prioritisation which is about focus on what to do with your precious earnings.”
Pack says that a good way to determine your financial goals and expenses can be to use the traditional Eisenhower prioritisation matrix, named after former American president Dwight D. Eisenhower who wanted to increase productivity.
“By adapting the matrix to focus on finances, it serves as great tool to navigate your finances effectively.”
Prioritising your finances by urgency and importance results in three quadrants with different strategies:
1. Do First! First focus on important financial obligations that need to be met within a specific timeframe. Examples of this could be your housing, contribution to your pension fund and daily expenses. Also making setting aside a monthly amount in a savings or investment account, should be your first priority on payday.
2. Schedule: Important, but not-so-urgent obligations that you can schedule or save for, like maintenance of your vehicle or renovating your house. When the time comes, and you have saved enough, you will be able to meet these expenses.
3. Don’t do: What’s neither urgent nor important, don’t do at all. This includes getting rid of unhealthy habits that are draining your hard earned money. Just quit that habit and instead use those funds to add to your growing savings account.
“By applying self-discipline and practicing these three steps you will not only be able to plan for a secure financial future, but also reap these rewards” says Pack.
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