As we had mentioned in our earlier articles, our discussion of your Point B (where you want to be) covers two (2) areas: your Money Mindset and your Money Skills.

And now that you have discovered the right, positive money thoughts in your Point B’s Money Mindset, we now shift our attention to the Money Skills you must have to reach your own financial goals.


What is Point B’s Money Skills section about?

18 - Goals

Here in the Money Skills section of Point B, we will focus on your concrete financial goals. Financial goals are, after all, the foundation of your finances.

What do we mean by that?

Well, whether you know it or not, financial goals are similar to happiness. While happiness is the ultimate reason for being for many people, financial goals are the ultimate reason for earning, saving, and investing money!

Think about it: Why do you even work in the first place? Why do you put up with that horrible boss who doesn’t help you and gets all the credit for your work?

Perhaps to provide for your family? Well, providing for your family has a monetary cost — a financial goal — attached to it!

Maybe to have enough for when you retire? That, too, has a monetary cost — a financial goal — attached to it!

And it’s the same for other reasons like to purchase a house, buy a car, start a business, and many more:

All of these dreams and reasons can and should be translated into concrete, financial goals!

18 - Convert to financial goals

The problem is, not too many people translate these dreams into achievable and concrete financial goals. Either because they don’t know how to or worse, they don’t know that they have to!

And you know what they say about not having goals:

If you don’t know what you want to achieve, then no matter what you do, you’ll never achieve it!

With Money University, you can be sure that you will learn how to determine and set your own financial goals. Not anyone else’s. Not some standard goal that some financial “guru” said you should have for yourself.

But your own goals.

Because you’re not like everyone else. You have your own aspirations. You have your own plans. Why should you have to follow some standard goal when it might not fit what you want to achieve anyway?

As you are a unique individual, shouldn’t you set goals that are unique to yourself as well?

18 - Unique -

Though some goals — like your retirement fund — are indeed goals that everyone should have, here in Money University, we’ll show you:

  1. How you can personalize these standard goals to fit your own needs; and
  2. How you can set any unique goal you would like to have for yourself!


Personalizing your goals

How can you personalize standard goals (like retirement and children’s education) that everyone should have?

As we mentioned earlier, all dreams and goals have a monetary cost attached to it. Take for example, retirement. Are you looking to retire in your ancestral home in the province? Or in a new penthouse suite in the heart of the central business district?

18 - Province or suite

Obviously, the first choice — retiring in the province — will cost much less than retiring in a penthouse suite in Makati. Aside from the cost of living in the province being more affordable, retiring in an already existing ancestral home won’t cost you an additional peso compared to buying a brand new penthouse suite!

Right now, you could be thinking: “Oh, but my ultimate goal doesn’t have a monetary cost attached to it! That’s because I don’t want all of these glamorous things when I retire. I’d prefer to slowly give away all my money to charity until I die.”

While that may be a noble goal to have, please note that there is still a monetary cost attached to it!

How come?

Well, while you’re slowly giving away all of your money, you’d still have to eat, right? You’d still need a roof above your head. You’d still need to pay for electricity and water.

And guess what, there are still monetary costs attached to all these!

For most (if not all) things that you want — big or small, plentiful or little — there will be costs attached to it. That fact will not change.

The only thing that will change is the level of costs. And this is what we mean by personalizing your goals.

Many financial “gurus” will tell you to set aside some X amount for retirement. Whether X equals P100 million or P100 thousand, how will you know if that will be enough and if it’s the right amount for you in the first place?

That’s the Money University difference. We will work with you to determine the right financial goal for what exactly you want!

There is no one-size-fits-all goal because we know that each person is different. You are different from your friend, uncle, twin sibling, and everyone else in the world.

Here are some more examples on how goals can vary from one person to another — and why knowing how to personalize your financial goals is vital to achieving them:

1.  For your wedding

Are you getting married soon, say, 5 years from now? If yes, are you looking to invite a lot of friends and family to a wedding with fabulous catered food and same-day video editing? Or just a small, simple, and intimate ceremony?

18 - Big small wedding -

The cost of these choices is about P1 million and P300,000, respectively. The former choice is more than 3x as expensive as the latter!


2.   For your children

How many kids are you planning to have? Where would you want them to study — in a public school or in an exclusive, private school?

The cost of tuition for these choices is none and P100,000 per year (as of 2014 prices), respectively. That’s a huge difference!


3.   For your home

Are you looking to have a house of your own? If yes, will it be on a 400-square meter lot in the city or a 80-square meter one in the province?

The cost of these choices is about P10 million and P400,000, respectively. Again, a huge difference!


See the HUGE differences? And can you also see the potentially huge blunder of not personalizing your goals?

If we don’t personalize our goals, we won’t know how far we are from achieving our goals and what we have to do to achieve them. When that happens, we’re likely to end up having enough only for a home in the province than that big house on a 400-square meter lot in the city that we always wanted!


Setting any unique goal

As we said, we know that every person is different. That’s why your retirement goals may not be the same as your friend’s retirement goals.

At the same time, you might also have goals that others won’t even have!

Are you saving up for a business? Do you want to purchase a vacation home? Or perhaps you’re planning to open your own studio?

18 - Studio

Aside from helping you personalize your standard goals (like preparing for retirement and purchasing a home), the Money Skills you will learn in Money University will also help you set goals that may be unique to you.

So even if you don’t hear from any financial “guru” on how to set a goal for your future business, vacation home, or studio, you’ll learn how to do that in Money University!

That’s because the foundation for determining financial goals for either personalized goals or those very unique to you is the same.

And here in Money University, we’ll reveal to you the secret to doing so starting in the next article.

Ready to set your own financial goals? Let’s get to it so you can move forward to reaching them soon enough!