This year 2021 began with resolutions, with optimism and conscientiousness that, most probably, barely lasted till the end of the January. We constantly start the year with good intentions by writing down resolutions geared towards making our lives better but sometimes we need a lot of help to reach the finish line, sometimes we don’t even know we need help. Health goals, financial goals, relationship goals, travel goals, academic goals, the goals that can be set are limitless and the potential for growth is endless. In a bid to become our ultimate selves we write down resolutions that are at best wildly optimistic. It’s the sixth month into the year, how much of those goals have you worked on?
It’s not sufficient to know how you want to better yourself, you need to identify the tools that will help you achieve your goals. Do you want to get healthier? What part of your day can you insert a 10-minute workout for a start? What food options can you swap in your diet for healthier ones without taking the pleasure of eating away? You want to earn more money? What remote work options have you considered? What necessary product have you identified to sell? Do you want to travel more? What countries or even states in the country are the safest to go to? When is the best time to visit? What will it cost to visit? How long will it take you to realistically save for it?
How Does Target Saving Work?
There is a lot of thought and planning that goes into setting achievable goals, many of which are centred around finances or need money to be achieved. So, let’s talk about target saving and how it can help you achieve your 2021 financial resolutions. Goals like rent, travel, education that have a set time limit would benefit greatly from a structured saving system.
Let’s theorize that you would like to spend December this year with your family in Ghana:
1. Determine the cost of the goal: The first step to achieving this resolution is to determine how much it would cost you to fully enjoy that holiday, including the cost of tickets, accommodation, tours, feeding etc. For this example, we can assume that it will cost a million Naira.
2. Determine how long you have to save: Knowing how long you have till you would need to use the funds would help you accurately determine the next step.
3. Determine what you need to save at intervals to meet your goal: Once you know how much the project would cost and how long you have till you need to use the funds; you can then decide how to save. You can choose to save weekly, bi-weekly or monthly to meet your target.
4. Determine the source of your savings: What part of your income can you allocate to meet this target? Keeping in mind that inshallah and vibes cannot help you here. Obviously not everyone has a steady income but setting a goal in mind for where you will save from will keep you focused.
5. Choose the best account to save with: The final and most important part is choosing a target account to save with; you need a savings account specifically designed for individuals to save towards a project or set goal. The best target accounts offer you the convenience of saving while maximizing your investments and at the same time letting you retain flexible access to your account with incentives to prevent you from wasting your savings.
Target Account Interest Rate in UBA
|Savings Band||Previous Interest Rate
|Newly approved Interest Rate (Per Annum)|
|N50,000 – N 99,999||1.05%||2.75%|
|N100,000– N4, 999,999||1.10%||3.00%|
|N5,000,000 – N 99,999,999||2.00%||3.15%|
|N100M & N249,999,999||2.50%||3.25%|
|N250M & above||2.00%||3.50%|
You can apply these principles mentioned above to other financial goals you have and I guarantee you would not end the year with ‘had I known’ when it comes to achieving your financial goals.