The VM Statement

I have noticed that a lot of people work in fields unrelated to their course. Even I am having that same experience. Since we're not expected to make a vision statement when we are in college, let us try to make one for ourselves, especially now that we are working, and naturally, not getting any younger. Having a clear vision statement will keep you going as you walk the road to financial freedom.

Let's use The Coca-Cola Company's Vision and Mission Statement as an example. I like using examples to better define my point. As I've learned, there are essentially two ways at teaching new knowledge, one is by way of examples, one is by way of conceptual definitions. I'm the former.

I got their VM Statement from this site.

COCA COLA VISION
To achieve sustainable growth, we have established a vision with clear goals.

Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
People: Being a great place to work where people are inspired to be the best they can be.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples; desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty.
Planet: Being a responsible global citizen that makes a difference.

This is a good vision statement so let's take it from there. The vision statement is where a company, in this case, You, Inc. wants to be years from now. Remember, a vision is a long term goal. The time frame is definitely up to you.

Let's craft a sample vision statement for You, Inc. following the concept of how Coca-Cola wanted to express itself in a VS.

"I want to retire with a monthly cashflow of Php XX,XXX"

I think this is one of the best vision statements you will make for yourself. However, if retirement is too far away for you at this point, then maybe this would be better:

"I want to have a house in (insert place here) that will fit (insert amount of family members here) by the time I am (insert age here)".

Let's take a look at their Mission Statement:

"Everything we do is inspired by our enduring mission:

• To Refresh the World... in body, mind, and spirit.

• To Inspire Moments of Optimism... through our brands and our actions.

• To Create Value and Make a Difference... everywhere we engage."

At some points I actually think that their Mission Statement is a Vision Statement. In any case, there is a certain ambiguity between the Mission and the Vision statement. And as I've said, I'll take some liberties with the way I define the two. For the Mission Statement, it's verbalizing your vision into a workable action (with a realistic time frame of course).

So for example, if your vision statement was the one with the house. Then your mission statement would be the following:

- To have a monthly savings goal of Php XX,XXX

- To keep expenses at a level of Php XX,XXX

Etc.

You might think that this is all too business-y, but in reality, try to take a different perspective of your household. Your household is not that dissimilar to running a business. You have income coming in, you have expenses like utility bills, etc.

Every family, and single individual should be serious with their finances and treat it not just as personal finance, but a pseudo-company: where singles are single-proprietorships, newly married couples are partnerships and families are corporations.