Personal Finance Checklist for 2024; Bonus Tips.

This lesson is a  follow up and expansion on the one we learnt yesterday.  I have spent a considerable number of years advising people about their personal finances and I have seen near miracles happen when people act.  

Many years ago I coined a slogan “If you are not thinking then you are sinking” and I really don’t want you to sink in 2024; instead I want you to prosper. These things are not complicated at all! 

1. You have to master your needs and deal decisively with your wants. For the uninitiated needs as those things you can’t live without and wants are though that you only buy if you have the capacity to do so. Reign in your expenditure because you are not an “Expendable”. There is a way tomorrow comes and finds you unprepared only to embarrass you; even in old age. 

2. Make it a point to save even if you don’t earn enough. Most people think they don’t earn enough and wait for an increment in their earnings to save. Well since you don’t have a guarantee when the increment will come, start saving what you got today. 

Never underestimate small beginnings; even when in comes to savings! Practice Target savings: Save for retirement, save for school fees and even for emergencies. 

3. Set short term goals, medium term goals and long term goals. Nobody can score in goal posts he/she has not defined nor can’t see. 

4. Live below your means and increase your capacity to earn more. The magic happens when you get close to living on 50% of your income. I know it's hard to do in a developing country like Uganda but I have seen many people do it and reach financial  freedom well before  45 years of age. 

5. Know what  assets and liabilities you have. The difference between the two is your networth. This is number you need to focus on. Its also the one that powers passive income if properly allocated and invested. Some of my clients have been doubling their Networth every 5 years and you too can do it. 

That all for this week. Class will resume on Monday. Enjoy your weekend.

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