Recently he sent me a list of resolutions, sent to him by his readership. The list, which he slightly edited, contains ideas for positive financial change. Below is an abridged version of Professor Weagley’s list for this year’s personal financial tips in tandem with my own thoughts for financial success in 2009.
1) Increase your efforts at work to enable you to keep your job since most companies are likely to down size their workforce on the back of the current global financial crisis.
2) Invest in yourself. Get the most from your past investments in yourself or use this time when the economy is sluggish to add to your human capital, either through furthering your education or exercise.
3) Reduce your debt and track your spending to make sure that what you buy supports your goals. Here, Professor Weagley emphasises the need to update your net-worth statement to see if you are making progress. He notes that making investment gains during 2008, with traditional investments, was difficult for everyone.
4) Write down your goals, as a starting point for financial success. Try to write down the amount of money and the point in time you wish to achieve that amount. Then, monitor your progress.
5) Use things you have instead of replacing them - just because you want something different.
6) Make sure that your savings are working for you and not just sitting there without earning interest.
7) Try to put your maximum deposit into your retirement account, as well as establish an emergency fund.
8) Look hard at major expenses and, if you can defer them to a later date, defer them. Keep driving your old car, while you save for a newer model.
10) Find things in your budget that you can live without. Examples might be: reduce the number of times you eat out, reduce the level of my cable television subscription to those channels I really watch. If you mainly watch soccer, forget about DSTV altogether; and, get into the habit of haning out to watch your soccer.
11) Take a hard look at your risk tolerance. Has the past year changed your tolerance for risk? If so, make changes in your lifestyle and investments in order to reflect your true values.
12) Review your entire expenditure for last year, especially utility bills. Consider using solar energy for lighting or, if you can afford, get off the electricity national grid altogether because in the long-run you will save a lot of money.
13) If you have a bank account, make sure you are well acquainted with all the charges involved. Look around for bank with the best charges; and, for purposes of maximizing your savings always be aware of the inflation rate which negates real savings.
14) Have a set of goals for the entire year in all areas of your life: physical, spiritual, financial (investing, saving, budgeting), social and intellectual.
Professor Weagley concluded his write up with a quote from by Epicurus (BC 341-270). “Do not spoil what you have by desiring what you have not, and remember that what you now have was once among the things you only hoped for.” You should not be greedy in your aspirations for 2009.
The writer is Managing Editor, www.myfinance.co.ug
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. This article originally appeared in Kampala-based Saturday Monitor.
