Your journey to become wealthy is a series of battles. These battles don’t have to be difficult! Make your financial objectives clear! So many people lose the financial fight even before they start because they cannot describe their financial goals properly. They don’t know why they save, what they want to achieve, and how much time they have to achieve it. In the end, they waste valuable financial opportunities.
Excellent planning wins battles! It accounts for possible retreats and even defeat! Excellent planning is a result of having clear and specific objectives. Achieving victory in the financial battlefield also entails making your financial goals understandable and concrete. If you know the Purpose, Target, and Timeline (PTT) of your financial goals, your financial victory is guaranteed!
Are you saving your money to provide for your family‘s needs in the future? Do you want to go on your dream vacation? Want to send your children to the top schools in the country or maybe even the world? Know your main goal for saving money. Define and describe it. Be as detailed as possible. The clearer the goal the more powerful it is. This is the purpose for all you do in your financial life. Knowing your purpose gives direction where your financial efforts should be headed to.
Your target is simply your financial goals converted to numbers. Your goals become more specific when you know how much you need to achieve them. Your target also tells you how near or far you are from your goals. Once you’ve identified this always remember to factor in the time value of money! If you’re saving up for your children’s college education, consider how inflation might affect the tuition fee a few years from now. Your target amount must match or exceed the tuition fee.
By when do you want to achieve your target for your purpose? Having a timeline will determine if your target is achievable within a specific period of time or not. With the right calculations, you will also figure out how much you should save and invest every month to achieve your goal. It guides you in choosing the best financial instruments to help you reach your financial goal easier and faster. Putting your monthly savings of Php1000 a month in a savings account for 30 years may not give you good returns if you plan to use it for retirement. Instead investing Php1000 every month in a mutual fund, earning an average of 10-20% per year could give you anywhere from 2.4-5.7M.
Know the purpose, target, and timeline of your financial goals. Write your PTT’s on a piece of paper! Many financial battles are lost because people don’t have clear financial objectives. They waste valuable time, effort, and money on things that deviate them from becoming wealthy. Always remember that your financial goals can be achieved. In knowing your PTT’s, financial victory is sure to be in your grasp!