How far gone are you with your 2023 financial goals? Have they been achievable thus far? With the recent development reshaping our economy, it is easy to lose sight of one’s financial goals, slack or even give up on pursuing one’s goals.
Remember that goal setting is great while meeting your set goals is a greater feat. This is why it is advised to always set and document smart goals, goals that are specific, measurable, achievable, realistic and time bound. Being realistic with your goal setting is taking into cognisance that many external factors can affect the achievement of your goal.
External factors in today’s context would be rising inflation rates, continuous drop in the standard of living, increased tariffs and so on. At a time like this, it’s crucial to address the impact of rising inflation rates on our financial goals. Inflation, the general increase in prices, can erode the purchasing power of our money and pose challenges to achieving our financial goals.
Despite the prevailing unfavourable economic conditions, staying above rising inflation and meeting up with your 2023 financial goals would require:
- Reduced Spending:
Identify areas where you can adjust and cut back on discretionary spending. You would be amazed that there are a lot of areas for you to cut spending and reduce wastage.
- Consider diversifying your investments.
There is no better time to diversify and protect your investments than now. Inflation can affect the value of your investments, hence the need to diversify your portfolio. Consider allocating a portion of your investments to assets that historically perform well during inflationary periods, such as real estate, commodities, or inflation-protected bonds. You should also consult with a financial advisor to develop an investment strategy that aligns with your risk tolerance and financial goals.
- Improve your earning ability:
Increasing your income can help you offset the effects of inflation and accelerate your progress towards your financial goals. Stay informed about economic trends, seek and leverage opportunities to increase your earning ability.
- Review your goals.
Periodically review your financial goals and adjust. it’s essential to reevaluate your financial goals in light of the changing economic landscape. Take into account the potential impact of inflation on your goals, such as increased costs or reduced savings’ value. Consider adjusting your goals to account for these factors while ensuring they remain realistic and attainable.
