Money Mat­ters: My year of Fi­nan­cial Free­dom

Zambian Business Times - - BUSINESS REVIEW -

By Lun­gowe Chi­tah Al­tus Cap­i­tal

IF you are any­thing like me, Jan­uary is a dreaded month. You find your­self in the same predica­ment; overindulging over the fes­tive sea­son which leaves me play­ing money catch up.

The New Year is a great op­por­tu­nity to start fresh and make some changes in our lives. The most com­mon New Year’s res­o­lu­tion is to lose weight or get in shape, but many of us will de­vote 2018 to sav­ing more money (or spend­ing less of it).

What­ever your res­o­lu­tion, get­ting and stay­ing mo­ti­vated is crit­i­cal to achiev­ing it. Your core mo­ti­va­tion re­ally needs to come from within.

The rules of en­gage­ment are sim­ple re­ally;

1. The first step is to as­sess where you are now. How well did you do with your 2017 goals? Are there ar­eas to im­prove on? Are there ar­eas where you did well and would like to build on?

2. Set SMART - Spe­cific, Mea­sur­able, At­tain­able, Re­al­is­tic and Time bound goals

3. If one of your goals is fi­nan­cial free­dom, one of the sim­plest ways to stay mo­ti­vated is to make a game out of what­ever it is you are do­ing. (Credit card com­pa­nies, re­tail­ers, and apps have known this for years, and that’s why they get us to rack up “points,” earn re­wards, and reach new lev­els.)

We sim­ply love keep­ing score and feel­ing like we’re mak­ing progress to­ward a goal. And that ex­plains the pop­u­lar­ity of one game many peo­ple use to help them save money:

Al­tus 52-Week Money Chal­lenge.

The idea is sim­ple: You start by open­ing an ac­count with Al­tus Cap­i­tal, this is an im­por­tant step as it en­sures you earn in­ter­est on your in­vest­ment.

You start your in­vest­ment by put­ting away just ZM10 (or ZMW100 if you can) in the first week of the year, and then grad­u­ally in­crease your sav­ings by an ex­tra ZMW10 ( ZMW100) a week through­out the year. So, you save ZMW20 or ZMW200 in week 2, then ZMW30 or ZMW300 in week 3, and so on, un­til you’re stash­ing away ZMW520 or ZMW5,200 in the last week of the year (next De­cem­ber). At the end of this you should have man­aged to have paid out ZMW13,780 ( if you went up in 10's) or ZMW137,800 ( if you went up in hun­dreds). Be­cause you in­vested these funds with Al­tus, you should have racked up in­ter­est over the year and there­fore have more money in your pocket.

No need to dread the month of Jan­uary any­more.

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