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3 Envelopes of Your New Life: Financial Goal Fund

December 29, 2014

This post is the last installment for my 3 Envelopes of Your New Life and again I’d like to extend my appreciation for the support on this series. In case you are visiting my blog for the first time I recommend checking my latest series called Top 10 Most Important Lessons in Personal Finance that can help you a lot in building a stronger foundation for your financial freedom.


Anyhow, the past posts on 3 Envelopes of Your New Life has been about the Emergency Fund and Fun Fund so better check out both posts before dealing with the rest of this post, ok?!

A Financial Goal Fund is an envelope where you could park your money reserved for your financial growth. This is something that you save for your first time investment such as opening a stock market account, mutual fund and/or UITF. This could also be your parking lot for a future business that you want to embark with and other factors that could affect your financial life in the future.


Uses of Financial Goal Fund


  • Are you in debt?! Then put up a Financial Goal Fund! Your goal is to probably pay off your debt as soon as possible so this envelope will be helpful. Each cut-off save an amount in this fund and make sure to pay your dues.
  • Have you ever thought of investing?! Then put up a Financial Goal Fund! When I opened my FAMI Account I never had any savings and that led me to have a two-month hiatus on my mutual fund top up. Since I did not accomplish a Financial Goal Fund, I found it hard to adjust my income to the additional monthly expenses. The Financial Goal Fund will definitely be a huge help in funding your investments from account opening to additional investments.
  • Do you have this business side of you?! I repeat, “walang yumayaman sa pagiging empleyado”. No matter how big your income is, becoming an employee will never make you truly rich. You will be deducted by huge tax and your time and your whole system will as always be your resources. What if you can’t go to work?! Then you won’t have income for the said day, right?! You need to strive and become an entrepreneur if you really want to earn money that gives you much confidence and assurance in life then put up your own business. Whether its an online shop, buy and sell, offering a service or become a freelancer, a business will make you from someone to somebody. Thus, your Financial Goal Fund could be the answer you’ve been waiting for.


How much should my Financial Goal Fund have?

Just like the Fun Fund, a Financial Goal Fund will depend on your goals. For example, your goal is to pay your. 5,000pesos personal debt by the end of January 2015. This means you have a month to raise and to save 5,000pesos on your Financial Goal Fund. Same thing with opening your first investment.


Where should I park my Financial Goal Fund?

Since this fund is meant to be spent on your financial goals I suggest parking it on a Savings Account wherein you will have an easy access of withdrawing or transferring online. Remember that Financial Goal is your actionable items and something that needs to be responded so make it easier for you to achieve one.

Jump start your Financial Fund by the following tips:

  • Eliminate unreasonable expenses. I have made a solid post called Want More Money? Cut-off on These 6 Financial Traps. Try to read the said post and all your savings could be put on this Financial Fund.
  • Set your financial goals as early as today. Know what your vision is and where you need to work with in order to create a new life.
  • Assess your current spending plan. Do you use a budget technique?! Whether it’s one of the app I mentioned in Four Budget Apps you Need to Have or a notebook style, budgeting will help you have concrete knowledge on your current status. This will also help you build decisions for this Financial Goal Fund such as new investment, new business ideas and so on and so forth.

Financial Goal Fund can make you progress in life as it acts as your seeds planted for future harvest. You need this envelope to fund your finances more. These are your stepping stones for producing the result you want to produce. Do keep one now before it’s too late.

Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph

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