The 5 money goals every business owner needs to set are in relation to financial freedom, savings, debt elimination, profit and income. But what is a money goal? It is just simply a goal that you make for your money. You still apply your normal goal-setting standards, such as using the SMART system, when setting your money goals. The exception may be the goal of financial freedom because it is often a long-term goal and you will want to explore a dream life that is not confined to being specific, or measurable or realistic at this point in time.
Goal #1: Financial Freedom
Everyone needs to know where they are headed if they have any expectation of getting there!
You may not want to achieve financial freedom, and that’s okay, but you still need to know where you are headed, no matter what you call this vision of your ideal life.
You may not believe that you can achieve financial freedom, in which case, you have some work to do on your money mindset, and setting the goal will help with this!
Goal #2: Savings
Savings help to provide financial security and is a fundamental requirement of building a solid financial foundation.
You start saving with whatever you can afford, even if its just £1.
You then build an emergency fund. You do this before creating other pockets of savings for the things you want in life.
Let’s remember retirement planning. Retirement may seem like a long way in the future but you’ll be there quicker than you think. And who wants to retire a pauper?
Goal #3 : Debt Reduction / Elimination
Debt is an evil that you don’t need in your life. This is especially true in relation to consumer-related debt such as personal loans and credit card debt.
The first step is to reduce this debt as quickly as possible, with the ultimate goal of eliminating all debt from your life.
Goal #4: Profit
Once you know your personal budget, including how much you want to save and reduce your debt by, you can start to work out how much profit your business will need to generate in order to provide you with the cash you need.
Goal 5: Income
When you know: where you are headed; how much profit you need to survive; and building a solid financial foundation, you can work out how much income you need to generate in your business.
Download a copy of my Top 5 Money Goals Summary Report, detailing the top 5 money goals mentioned in this blog so that you have this information ready when you next sit down to set your business and personal goals.