As we come to the close of 2024, most businesses are already prepared with their plans for growth in profits – strategies that include a detailed cost analysis, what to trim, where to allocate funds, where to downsize or where to upscale.
Many of us could be planning a celebration, vacation, or an event. In your thinking which is the most important business for you? It’s YOU! Yes, whatever you earn has to take care of you whether you are an employee, business-owner or a stayhome mom.
Here’s a small exercise that will help you: Start with just writing down at random. Nothing is too silly, frivolous or ridiculous; so stop judging yourself and don’t bother about what other people will say. After you have written these down, mull over and edit as you wish to. You have a ‘sort of’ final list: Top 5 oneyear goals, that’s for 2025; Top 5 three-year goals; and Top 5 fiveyear goals.
Set your budget
Now comes the ‘fun part’:your money needs The first step in planning for greater success is to find out how much income you need to cover your requirements. Therefore, you must establish your budget. Start with the monthly cost: fixed expenses like rent/loans/credit cards and electricity, water bills; business expenses like sales promotion, advertising and self-development; and discretionary expenses like attending conferences/workshops etc. Once you put an estimated amount/ cost against each then add on another, at least 5 per cent for inflation.
Then comes the unexpected, not anticipated costs on which you have no control. Remember nothing is free and when facilities are made available you must pay. The toll system is a case in point. Toll gates on major roads networks have not only increased but the charges have increased as well. Commuting now costs more and so will parking.
Price of fuel varies from month to month and cost of food items can skyrocket due to conflicts/wars in other parts of the world; and don’t forget VAT, which is added to everything! In addition, as more expatriates looking for a better quality of life make UAE their home, the demand/ use on basic facilities will continue to increase. So what’s the smart thing to do? Be more conscious of your spending and pay more attention on generating income.
Healthcare services
Make sure your medical and car insurance is comprehensive. Health insurance premiums will go up this year as the UAE has made coverage mandatory for all. The new scheme will affect the growing private sector workforce. With the new policy, the demand for healthcare services will rise and factoring in economic factors like inflation and healthcare advancements, expect an increase in cost of premiums. If you are not expecting a raise in salary or a big jump in income from your businesses, how else can you make your money grow?
Don’t have large surplus sitting in your bank accounts.
Look at ways to invest your money.
Invest for medium to long term.
Invest only through well-established, regulated companies However, it all starts with your Forward Planner, your mini roadmap with a timeline of one, three and five years.
