This article is for entrepreneurs who set financial goals in a new normal since the pandemic outbreak started.
If you have a side hustle or starting a business today, this might for you also.
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This website specialize in how to start up the business for beginners and educate them to be financially independent
I have a plan, but I do not know of what a financial goals is.
Yes, I have a goals but it combined both for my personal and a business.
As an entrepreneur why you need to set a financial goals?
Filipinos has this culture of looking back to their folklore by giving the amount of money. Another is to help their siblings to finish study. Aside from that in a new normal, they wanted to retire early to enjoy their fruits of their labor. They start a sideline and soon grow into business.
They wanted to be financially independent and at the same time helps their family. In this pandemic outbreak, it is inportantachieve it, important to set a financial goals.
You can ready previous post ways to achieve financial independent for entrepreneurs.
To succeed in business, an entrepreneur needs preparation to plan, and that includes your goals.
If you are venturing in business, setting financial goals in a new normal has three categories:
Long-term Financial Goal
When I am starting my financial independence journey, it is hard for me to create a plan because obviously, it is a long term period to realize it. That is why I am stuck on the short-term goal. As the years pass by, I badly need to prepare it.
You can achieve after 15 years and it takes a lot of hardwork and patient for the sake of your dream.
For personal purpose, retirement is the main goal why people work hard.
Retire young to travel more.
This is the journey that you do not have to work really hard because you are old. You need to take a break, going out and travel. Live a simple life and buy maintenance as your purpose.
How to compute retirement fund?
Let’s say, today at the age of 30 you are earning P20,000 monthly, single, and without dependents. If you want to be the same lifestyle for 30 years retired at age 50.
12 months x P20,000 = P 240,000
P240,000 yearly × 30 years = P 7.2million
Wow! can you imagine, you have to save for 30 years this P 7.2 million.
Suppose you save P5,000 monthly for your retirement?
P5,000 savings x 12 months = P60,000 annually. For 30 years your retirement fund P1.8million.
You still have remaining P5.4million.
How to achieve thus long-term financial goals? This is the 2 categories work. To break into pieces and set a time.
How about for the business long-term financial goals?
Most of the ambitious wanted to expand their business locally and internationally. With this digital and advance technology, it is easy for them in a few years.
Setting short-term goal is the foundation of the three because this is where you start building your dream. It will take few years.
This financial pyramid will guide you to understand better.
Related post: Levels of Financial Pyramid
What are those basic foundation?
As you can see in the levels of pyramid, the base is the foundation that consists of your Income. Your income dictates of how much money you save, for investment, and for your daily allowances.
Income consists from your regular jobs, business profits, from your side hustle, freelancing or income earned from investments. When you add together, you will know if you want to increase your cash inflow to sustain both for yourself, your business, and your lifestlye.
An emergency fund is important both for personal and to your business. When the economy face recessions, you have an extra cash to maintain your lifestyle while making your business back to normal. Health issues, sudden of death, and natural disaster of business properties are another sample of emergency fund need to address.
People work hard gives additional pays for their savings and investment.
To help you know of where your money going, create and track a budget plan.
For example, my financial goal is to pay off my debt within two years. With my net salary of P10,000.00 and the estimated loan payment, I can save of at least P2,000.00 monthly.
How you can increase your cash inflow to increase your savings and achieve your long term financial goal?
If you have a great foundation, then you can start to save money for the retirement.
Set a medium financial goals in a new normal is challenging especially if you are starting grow your business and your personal finance.
When the pandemic hits worldwide with almost of the country faced lockdown especially here in Philippines. All your emergency fund on both sides are now drained and you are starting over again.
Start to invest in money market and UITF with income earned, then you do not have to worry to continue your plan.
Growth and Wealth Accumulation are your medium-term financial goals. When you are in business, a golden rule is when there is opportunity, there is a solution. You can innovate in business thru online and honestly, some large companies is their time to expand.
Buy insurance for your business and for yourself and it is important if your business is growing. Insurance of business are the group insurance (for your employees), health insurance, and property insurance.
for personal, buy a house and lot and pay within 12 years or an educational fund for your children.
Double your income for your retirement by invest in mutual fund and stock market. If your cash flow is improving because of effective budget, then you expand your businessto help save to your retirement
For start-ups, you can create a simple financial goal. A step by step until you achieve it.
To set Financial goals in a new Normal, you need to FOCUS.
Prepare a schedule by creating a yearly task and break into daily, weekly and monthly. This is the result if you take an action of your goals.
Your goal is to pay off the credit to your suppliers before the years end. Start a monthly notes of how much you save and focus it by monitoring on weekly task.
Do your task one step at a time. When you are making progress, then start a new one.
I play trading at Philippine Stock Market, writing a blog, and I have a regular job. I am focused on my job because it gives me an income to play and buy web hosting. When the skeletal workforce started, I am focusing on writing and now I am preparing an affliate marketing, and e-books which will be started next month.
When you stay focus, it increases your motivation to achieve results of your success.
This is the best set of financial goals in a new normal for starting a business is always hungry for learnings.
In this technology advancement, constant change for innovation and gathering a facts to beat the trends for your business. Effectiveness of money management for your personal and your business gives a good impressions for your customers and your suppliers that will help you to grow your business. The results is increasing cash inflows which results to achieve your financial goals.
Reference: Investopedia: Setting a Financial Goal
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