IT'S NOT JUST ABOUT SAVING—IT'S ABOUT AIMING.

I have always thought that saving money was enough. You know, just stash away whatever cash you can in your piggy bank. My mum will always scream in my ears, “it is not everything you see, that you buy…. Try and save for the rainy days”. Well, I finally followed her advice. But she failed to mention that: if you’re saving without a goal, you’re only walking in circles. I had to learn it the hard way.

I remember when I wanted to save up to buy PS 3. Anytime, i have left over change, I’ll keep it. Along the line, transportation increased and price of food items became so high and before I knew what was happening, my savings disappeared into thin air. It was later I realized that saving without a clear target is like shooting arrows blindfolded. You will miss all the time.

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Short term goals are those ones you achieve immediately in a space of one or two years. This goals exist to keep you motivated for the bigger goals. Paying off credit cards or loans, going on a vacation, buying a laptop, all this are short term goals.

Long term goals like buying a house, saving for retirement, starting up a business are dream goals that take years or decades before it comes into existence and every penny is always worth it. For instance, David have always had this dream of owning a big house. He started by saving any little money he has. It took him years but it finally paid off.

But the bigger picture now is balancing both short and long term goals.

You know that feeling when you get a good job that pays well and you are tempted to buy everything that comes your way. That was me, some years ago when I was stock control officer in port harcourt biggest shopping mall. I wanted to buy everything, a new tv, beautiful clothes and shoes, fridge and everything good. But money do not grow on trees, so I had to prioritize my needs (essentials) over my wants (non essentials).

I told myself, I already have a smaller tv that I’ve been managing before I even got a job in the first place… why not go for a smaller fridge that is more important, so that you can start preserving your food.

I realized I needed a system to split my goals into percentages. So each time I receive my salary, I make sure 50% goes for my needs, 30% goes to long term goals and 20% goes to short term goals. I also set a clear timelines by giving a specific deadline to achieve my goals. For instance, I can save #300,000 in six months for a laptop and 50 million naira in 8 years for a house.

( Bing ai image generated by me)

Let’s imagine, you have two goals you plan to achieve.

• to get a laptop (short term goal)
• To build a house (long term goal)

If you decide to save for only the laptop, you’ll ignore the house and if you decide to save for only the house, you will definitely get frustrated whenever you can’t meet your immediate needs at that time (Laptop).

So, the best way to solve this issue is to split your savings into two by allocating 70% towards the long term goal (house) and 30% towards achieving the short term goal (laptop). This way, you are saving for both without neglecting anyone.

Short term goals are the quick wins and motivation you need to keep you energized while long term goals are the big dreams that gives your life a meaning. But to achieve this goals, we definitely need a plan and that plan starts by asking ourselves: “What am I aiming?” Because if i aim for nothing, that’s exactly what i’ll hit.