Tag: Goalsetting

Financial Tips for Businesses #2

Ronel Jooste FinanciallyFiTLife


Goalsetting for Businesses

Businesses should be setting new goals on a regular basis, but at least annually. Goals should be set for the shorter, medium and longer terms. Business goals can include: to grow the client base, to make more profit, to repay outstanding loans or to expand the current products and services. Be specific and realistic when setting goals and attach timelines to every goal. Goalsetting has a direct impact on budgeting, forecasts, cash flow projections, tax planning and financial stability.

Savings Accounts for Businesses

Businesses should set-up a few savings accounts separate from the normal operational bank accounts. These savings accounts can be used to save money for tax payments, VAT payments, staff bonuses, buying new computer equipment, expanding to bigger offices etc. Separate savings accounts do not only offer higher interest rates than operational bank accounts but they can also be used to manage finances more effectively. Access to these accounts should however be tightly controlled and the accounts should be reconciled on a monthly basis.

Liquidity of Investments

Liquidity profiles of businesses’ investments should match their operational and financial goals in other words money should be accessible when needed. Don’t invest operational cash that you might need in the next few months in a six-month or longer fixed deposit. Putting away money to buy new equipment, to expand or to buy new offices in a few years can be invested in investments with longer-term liquidity profiles. The same rule applies for investments with a long-term view in mind. Proper planning will ensure you have access to your money when you need it and also avoid paying penalties when withdrawing money prior to the investments’ maturity date.

Creditor Payments

Businesses can create improved cash flows by paying their creditors as late as possible, but still within the agreed period. However the money due to creditors shouldn’t be used for operational needs in the meanwhile without having a definite plan and income source to replace it before it is due. It is always an option to negotiate preferential payment terms with your creditors when cash flow if tight. Avoid paying creditors late though; unnecessary penalties and interest might be charged and an unfavourable credit record will be the result.

For more information about my financial wellness programmes visit the website.

Written by Ronel Jooste

CA(SA), Financial Consultant and Coach, Blogger and Speaker

Contact Ronel: ronel@financiallyfitlife.co.za


Set SMART Financial Goals for 2018

Last week we spent time thinking about our financial dreams. A dream will however remain a dream unless you convert it into a financial goal, create an action plan and start taking action to achieve those goals.

Financial goals are different for every person. Your goals might also change as you grow older or become more financially stable. One person might dream about driving an expensive German car and owning a game farm, while the next person wants to get through the month without having to stress about money. It doesn’t matter what your goal is, but you need to have a goal. Without having a set goal, you will just continue to float through life. Goals give purpose and direction. Goals force you to thrive and not only survive.

The very first step in financial goalsetting is to write down your goals, but write it down in a SMART way:

  • Be Specific – define clearly what your goal is. “I want to get rich” is not a goal. Define what “rich” means to you. For example: ‘I want to buy my first house’.
  • Measure it – set smaller milestones that you will be able to measure. For example: ‘I want to save-up the deposit by the end of this year’.
  • Be Achievable – dream big but be realistic. Your goal must be achievable to keep you motivated. For example: Maybe your ideal home is a double-storey home with a big garden and a swimming pool, but maybe you won’t be able to afford it in the given time. Then you should maybe first invest in a townhouse and upgrade to your ideal home later or when you earn more money.
  • Be Relevant – it should be relevant to you; what is your personal financial goal. It should be something that inspires you. There is no point in making the neighbour’s goal your goal.
  • Set Timelines – set timelines by when you want to achieve what. For example: ‘I want to save-up a deposit to buy my first house by the end of this year and buy my new house in two years’ time when I have enough money to pay for the transfer costs as well’.

Spend time thinking about what your financial dreams are, if you don’t know already. Once you know your financial dreams, covert them into financial goals. Go write down your goals and make sure you have set each goal in a SMART way as explained above. If you write it down, it creates a sense of responsibility and you will be more likely to achieve it. Setting your SMART goals will also help you to compile a plan to achieve those goals.

Download your FREE Financial Goalsetting Workbook to help you get going.

Written by Ronel Jooste

CA(SA) and Financial Coach

Contact Ronel: ronel@financiallyfitlife.co.za

For more information about my financial wellness programmes visit the website