How Do Get what You Get What You want?

So far we have dealt with two of the most important and arduous parts of the financial planning process. You’ve learned how to develop your personal financial profile. And you’ve figured out how to set your personal financial goals and objectives.
Now let’s look at different strategies that you can use to achieve the aims you’ve set for yourself. I will start in this post by showing you how to adopt strategies that match your financial profile and your goals and objectives.

Strategic Planning
When you set your objectives, chances are you found yourself focusing on eight key areas. Your objectives related to:
1. Investments
2. Dept management
3. Insurance
4. Tax planning
5. Children’s education and other family matters
6. Company Benefits
7. Retirement
8. Estate planning
My subsequent posts will be touching on strategies to handle these eight key areas.

Dollars and Sense
To see how to get what you want, transform the list you made when establishing your goals and objectives with price tags, timetable, and broad strategies attached to them.
The table below shows you how much GHc1 (1$) invested at certain interest rates can grow over a specified number of years.
Now, here’s what your goal/strategy outline might look like. Remember, the following is only an illustration. It is not meant as model.

Goal 1: Protect Against Risk
Objectives: Establish an emergency fund
When: Three years from now
Cost: GHc5,000 ($5,000)
How: Invest GHc130 ($130) a monthly for thirty-six months at 6%

Goals 2: A Comfortable Standard of Living
Objectives: Purchase a second home
When: Five years from now
Cost: GHc20,000 ($20,000)
How: Invest GHc150 a month for 8 years at 10%

Let me summarise the steps you should take in order to get what you want. First, set goals, next, set your objectives. Finally determine your strategy. And if you discover that the strategy you choose does not work? Go back to the drawing board and sketch out a new one.

Following Through
After you develop your goal/strategy outline, you much implement and follow through on your plan, and you much update it as your life and circumstances change.

What’s critical is writing down a time goal for meeting your entire objective. And, since the same principles apply to every aspect of a financial plan, you should target times for reaching even the shortest-term objectives – buying a new set of jewellery or golf clubs for example. Finally at the end of each year, you should challenge and evaluate your priorities.

Don’t be afraid to modify, expand, contract and change your plans. Update your plan at least every few months for your short-term objective and every year or so for your long-term objectives. I recommend keeping your old plans behind your new ones so you can see how your goals and objectives change over the years.

If you follow these simple rules and concentrate on breaking down the three key financial planning questions – what do I have? What do I want? How do I get what I want? – Into logical, manageable bits, you can achieve your goals.

Keep in mind, too, that you can ask financial planners for help, periodically consult with other professionals, and turn to magazines, newsletter and of course my blog – but remember you are the only one qualified to define and refine your plan.



Email me with any queries or comments.