August Financial Goals Checklist
Written by Dave Joseph Balatbat —Financial Adviser, Entrepreneur and Marketer
Even without the pandemic, August has historically been a month where economic activity is weaker than normal because of certain factors such as the weather (rainy season) and slower consumer and investor activity. American and European fund managers take their leave during this time period and Chinese investors avoid “the Ghost Month” in terms of making business decisions. For many Filipinos, this is the time to limit spending in order to generate funds for the upcoming “ber” months. With this in mind, let me share with you some FINANCIAL GOALS you can include in your checklist to help encourage you in treating this month as an opportunity in securing and growing your finances even in this very challenging time period.
1. SAVE, SAVE and SAVE! You can start by saving a comfortable amount of your monthly income. To guide you, I advise that you consider saving at least 5–10% of your monthly income to be build your savings. Think about this; if you save 10% of your income every month, in 12 months you have saved a month’s worth of salary. A great strategy? Think about what you can do with a higher savings rate! You can use your monthly savings in building-up your emergency fund or for your future financial goals or major expenses. But if you’re financially challenged during this time period and your current income is not viable to generate a surplus for your target savings amount, proceed to numbers 3, 4 and 6 for an advice!
2. If you start PLANning this August on setting-up your emergency fund for next year, you can be well ahead in promoting discipline with your finances and avoid impulsive purchases especially before the months November to December where most have the mindset of excessive spending. The earlier you start on building this fund, the faster you can secure a financial safety net for your family. The target is to save at least 3–6 months’ worth of your monthly net income or monthly total expenses. Include this goal in your monthly budget plan going forward so you won’t miss allocating a portion of your money in this strategy. It pays to be prepared especially now that the current environment presents serious hazards that can affect your health and wealth significantly.
3. Whether or not you can pay off your debts like your credit card debt immediately, make it a priority to MAINTAIN a positive payment history and use credit responsibly. Even if it takes a while to clear your balances, your credit will thank you in the end — and so will your bank account. Payment history is the most heavily weighted credit score factor, so making payments on time every month is essential to keeping your credit in good shape. It also helps you avoid late fees which can add stress to your monthly expenses.
4. We all know what we should LIMIT ourselves with during this time of crisis. It varies from person to person but we can go down to the basics by checking our needs vs wants. We need to be more conscious of the difference between the two. Cutting back on certain expenses altogether might not be an ideal situation, but if it means staying financially afloat during this crisis — then by all means we must limit and discipline ourselves!
5. No one is safe from this pandemic but there are available strategies we can implement to manage health and life risks effectively. An example would be to SECURE an insurance protection. One example of this is the Term Life Insurance which protects you on a short term basis (like one year) but offers guaranteed maximum life insurance coverage to protect your income. Since this is a short term protection coverage, you can find this type of insurance as one of the most affordable options you can secure. It’s perfect for professionals, bread-winners or essential workers who would like to exponentially increase their total insurance coverage to protect their income but have limited finances in this time period. Bottom line is, your own life is your most important asset; don’t let this fall below on your list of priorities especially if you haven’t secured one!
6. Although the economy is extremely challenged this year, I can still see growth potential by the end of the year especially on the upcoming “ber” months. Most remittances from OFWs usually enter our economy during this time period and some professionals would still receive their year-end bonuses. Instead of being just a consumer during this time period, you can SEIZE the opportunity of being an entrepreneur. A side hustle, freelance work or an online business will be very beneficial in increasing your cash inflow which will then help increase your capability to save. Look for problems that need a specific solution within your social circle or community. Address it by creating a new product or service for the market or search for credible yet cost-friendly suppliers if you plan to re-sell “hot-selling” items during this season.
7. I hear a lot of stories from professionals appreciating the stay-at-home guidelines because they now have more time bonding with their families. Although we hope that this crisis ends the soonest, let’s relish this rare opportunity of having more time at home so we could grow closer with the people we love and be with them in this time of uncertainty. It is also the perfect time to PROMOTE team work and cooperation in managing your family’s finances by introducing discussions or meetings which tackles your monthly spending and saving habits.
8. A person who plans to build his/her own house needs an architect to create a masterplan and design the specifics for his/her dream house. Similar to an architect, a financial adviser can help you create a blueprint for your financial goals and guide you in achieving them. Don’t shy away in TALKing and sharing your thoughts and financial situation with a professional. There are some pain-points in your financial standing that only a professional can observe or situations where certain principles or tools must be implemented to be addressed effectively. From savings to debt management, budgeting to building an emergency fund — there are a lot of aspects in the financial planning process that a licensed professional can guide you with aside from offering financial instruments.
August may be one of the most challenging months this year, but with a proper mindset and strategy in place, you can still create opportunities of growth for your personal or family’s finances.
Let me know if you are interested in learning more about Financial Planning. Let’s start by understanding your current financial standing and identifying your future goals. Book an appointment with me for a consultation session through my website: https://calendly.com/davebalatbatconsultancy
Connect with me on Linkedin to learn more about my activities: linkedin.com/in/davebalatbat
