I am a BIG advocate for financial wellness – having a solid and positive relationship with our money, setting realistic financial goals and planning for the future. Being financial healthy also gives one a sense of security and peace of mind, especially when life happens i.e. accident, loss, child-birth, medical emergency, marriage, divorce or COVID-19.
Over the years working with a number of clients, I’ve come to appreciate that advocating for financial wellness in isolation is not enough, because the other seven pillars of holistic wellness – physical, spiritual, nutrition, social, emotional, intellectual, environmental influence our finances, positively or negatively.
As a Personal Finance Coach, my biggest struggle in 2021 was obsessively planning for tomorrow – saving and investing aggressively on the back of the COVID-19 uncertainty. While planning for tomorrow is highly encouraged, the danger in this regard was forgetting to actually LIVE and enjoy today by doing the things that make me happy. I had absolutely no balance, resulting in resentment, bitterness and dare I say lack of fulfilment. I think it is time for me to change that.
As many start to work on their new financial goals for 20-20-You and prepare financial plans to achieve them, I would like to challenge you to do the following;
- Align your financial goals with your life goals – Maybe your goal is to grow spiritually, work on your personal development or invest in your relationships with family and friends. Perhaps you want to travel more or achieve your fitness goals, my advice would be to have a holistic approach, determine how much money each of these will need, align and plan accordingly. This will bring so much meaning and balance as you set out to win and achieve your goals.
- Pay yourself first: Make it a habit to “pay yourself first” by putting away at least 20% of your income into savings and investment accounts. It is important to save consistently, start where you are but do so without forgetting to live – going out with family and friends or doing the things that bring you the most joy. There is science behind the recommended 20%!
- Have a comprehensive financial plan: Financial planning remains a foreign concept in Lesotho. My challenge to you this new year is to consult a qualified and registered financial planner or financial advisor to help you develop a financial plan, with a long term view e.g. 3-7 years (still aligned to your life goals) in mind, with regular reviews. The reality is that life happens (death, child birth, marriage or illness), but you’ll be better prepared to weather the financial storm when you have a financial plan that caters for your short term and long term financial needs.
- Have fun and live: Money is tool or resource that affords access to our desired lifestyle. It is our responsibility to manage it well, use it responsibly, enjoy and find a balance between living for today, but planning for tomorrow.
I always say that “financial prosperity is our birthright. Our responsibility, however, is to change our bad money habits, plan and be responsible – while maintaining the BALANCE!”
