SHORT TERM AND LONG TERM FINANCIAL GOALS

 It is the desire of every person to achieve their financial goals. The question is why is it a tall order for most of us.  That is when we need to go back to the drawing board. It is said that Rome was not built in one day. Short term financial goals are those goals that one strives to achieve within a day, week, month up to one year. Long term financial goals are those goals that one strives to achieve beyond one year. The understanding of this difference is financially liberating because it helps a person to plan accordingly and set meaningful and realistic goals.

Why is the gambling industry thriving in Uganda? It is because over 70% of the population is below 30years and this age group is dominated by the desire to get instant wealth and abnormal gains in a short period of time. We live in a generation that undermines small coins and not knowing that if saved consistently these coins can achieve so much. The failure to grasp the concept of short term and long term goals explains why some youths mortgage their property in order to get loans from loan sharks to fund their expensive lifestyles.

Suppose a youth wants to buy a plot of land at 1,000,000/= The calculation is as follows:

Goal : buy a plot of land 

Time period: 12 months

Cost of land : 1,000,000/=

Monthly savings: 1,000,000/=/12 = 83,300/=

Weekly Savings: 83,300/=/4= 20,833/=

Daily Saving: 20,833/=/7= 2975/=

INTERPRETATION

If a person saved 3,000/= per day , he or she  would be able to buy a plot of land by the end of the year. There is no little money if one develops a long term perspective towards money.

For individual and corporate financial literacy training contact :

Coach Phillip Kiryowa

Personal Finance Coach (CMA)

Certified Master Trainer , Bank of Uganda 

Founder, Advanced Empowerment Link

0752615916

For Financial Freedom and Sustainable Enterprises.

Comments

Post a Comment

Popular posts from this blog

ACRE OF DIAMONDS

 According to Dr. Dennis Kimbro in his book Think And Grow Rich  every human being is an acre of diamonds. In simple terms we have more potential than we can imagine. With adequate self reflection this statement can change any person's life. It is Dr. Myles Munroe who noted that without knowing our purpose on earth we are likely to lead a less impactful life. The question that has been asked by many leading scholars is why are some people more successful than others? Is it family background? Is it luck? Is it the country where they were born? Unfortunately no body has a clear answer to this contradicting question. Hellen Keller was born blind but by the time of her death she was a very successful leader. Oprah Winfrey had a tough childhood but is now one of the most influential leaders in the world. Nelson Mandela was imprisoned for 27 years but became the president of South Africa. From the above case studies it is important for each one of us to learn a lesson. We have more...
Read more

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an...
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiab...
Read more