Page 37 - DPSA_SDR Vol 12 No.2 2019

PERSONAL FINANCE

Five keys to successfully

managing your personal

finances

If you’re tired of constantly being stressed out about money, the following techniques can help you gain more
control over your personal finances, writes Miriam Caldwell.

There are five key ways that out of debt, buying a home, or Your goals, along with an emergency
you can manage your financial retiring early. These goals are fund, will help you stop making
separate from your short-term
financial decisions based on fear
situation and take back control goals. and help you get control of your
over your money. If you follow situation.
these five steps consistently, • Set short-term goals, like
following a budget, decreasing
any financial problems will your spending, paying down or When creating a financial plan,
start to diminish and you can not using your credit cards. remember these things:
start reaping the rewards of • Prioritise your goals to help you • Your budget is key to success.
lower debt, savings for the create a financial plan. It is the tool that will give you the
most control of your financial
future and a solid credit score. future. Your budget is the key to
2. Flesh out your plan achieving the rest of your plan.
1. Detail your financial • You should keep contributing to
goals A financial plan is absolutely long-term goals like saving for
essential to help you reach your
financial goals. The plan should retirement no matter what stage
Take some time to write specific have multiple steps or milestones. of your financial plan you’re in.
goals for your life and the money A sample plan might include getting • Building an emergency fund is
you will need to meet your goals. control of your budget, creating a another key factor to financial
For example, your goal to travel spending plan, then getting out of success and stress reduction.
the world affects how you will plan debt.
your finances. Your goal to retire
early is dependent on how well you Once you’ve accomplished these 3. Making and sticking to
save your money now. Other goals, three things and have followed your budget
including homeownership, starting a through on your new plan for a few
family, moving or changing careers months, you may find that you have Your budget is one of the most
will all be affected by how you extra cash, and the money you free important tools to help you succeed
manage your finances. up from your debt payments can be financially. It allows you to create a
used to reach your next round of spending plan so you can focus your
Once you have written down your goals. money in a way that will help you to
financial goals, prioritise them. This reach your goals.
ensures that you are paying the most Decide what priorities are the most
attention to the goals that are of the important to you. Keep steadily You can make your budget as high-
highest importance to you. You can working toward your long-term level or detailed as you want, but the
also list them in the order you want to retirement goals, but also start to ultimate goal is to help you decide
achieve them, but a long-term goal focus on the most important near- how to spend your money over the
like saving for retirement requires term goals you have set for yourself. coming months and years. Without
you to work towards it while also Do you want to take an extravagant the plan, you might spend your
working on your other goals. trip? Start investing? Buy a home or cash on things that seem important
build your own business? These are now, but don’t offer much in terms
Below are some tips on how to be all things to consider when deciding of enhancing your future. Many
clear on your financial goals: on your next step. people get caught in this quagmire
• Set long-term goals like getting and reproach themselves for not

Volume 12 No.2 of 2019 | SERVICE DELIVERY REVIEW 35