Where are you heading Financially?

If you don’t know where you are heading and how to get there, what are your chances of getting there? If you operate your finances on a pay-as-you-go basis, taking it one month at a time, eating with ten fingers, how do you plan or hope to accumulate wealth? How will you become wealthy? If you earn N300k per month and spend N300k per month, what are your plans to accumulate wealth and become wealthy? Are you waiting for a financial miracle to change your financial situation? How long have you waited so far? How long do you have to wait? What if it does not come, then what next?

Some years back, I was among those that were waiting for a financial miracle to turn around my finances. I was hoping for a financial windfall, a double promotion at work, a juicy contract, something that will just fall into my waiting arms through divine providence. I was living from hand to mouth, hoping for a better day, a day my all my financial problems will be over and all my prayers will be answered. It did not dawn on me that I was heading nowhere financially due to a lack of financial goals. My plan for the future was based solely on the hope of better days to come.

If you are heading nowhere, any road will take you there. You need a clear picture of where you want to be in the future financially, have a plan, and work towards it. Your financial goal gives you focus and helps guide your spending decisions. When you have a clear and compelling financial goal, you find it easier to delay gratification as you work towards your financial goal, acquiring assets rather than accumulating liabilities that make you feel good today and broke tomorrow. Imagine someone leaving home and going to wait at the bus stop with no clear destination in mind. Anything goes, as there is no clear direction. Your financial decisions will be based solely and feelings and emotions devoid of logic.

If you can pause for a while today and review how you handle money and ask yourself if you keep doing what you are doing today, where will you end up in 5 years, ten years, etc? Are you making progress financially or you are living from hand to mouth, month after month? Where are you heading financially?