I struggled to set a financial target for this year.
Last year was my smallest year since being full time self employed 5 years ago. I took 18 weeks maternity leave, and took most of the year very slowly.
In October 2018, I ran my finances and realised just how quiet my year had been. I was disappointed in myself. So I set myself a new target for the end of the year.
By the end of the year, I had made almost as much in October to December, as I made through the other 9 months of the year.
Setting my 2019 Financial Goal
This year, I wasn’t sure what target to set.
Setting a % increase on last year didn’t feel right, because last year really wasn’t what I wanted it to be (although you can definitely use this method to set your own financial goal for the year)
But setting a much bigger goal seemed too scary, seeing as I’m expecting baby number 4 in 11 weeks, and I’m not sure how running a business and looking after 2 under 2 will work.
My step by step
So I made a list of all the things that I want to pay for this year.
Living expenses, mortgage, spending money, house improvements (such as solar, a roof restoration, new side fence) and holiday that I want to take the family on.
I added it all of those numbers up, and that game me the profit I need to make for the year (or if you are paying yourself a wage as part of the business, then that gives you your take home wage)
Remember…. that isn’t the final figure though.
I then added the amount that I will need for expenses and for tax purposes.
This gives me the total figure I need to generate.
I’ll be honest – the number scares the shit out of me.
Then I took that number and broke it down into approximate earnings each month (allowing for some months to be smaller, and some to be bigger)
Lastly, I took that monthly number and worked out what I needed to sell to reach that goal
Your Financial Goals
Do you have a clear target for the year?
Or at least for the month?
We don’t need to know the number if you don’t want us to
I’m going to write mine up in big numbers today, work out what I need to sell to reach it, and spend some time getting more comfortable with it.
How about you?