It’s a new year and a new you – we are talking about GOALS. Here are the top 3 financial goals that everyone should set. Regardless if you hit them or not – these are what you should be striving for.
Welcome to the new year. At this time, everyone is thinking their goals. Becoming financially independent, losing weight, learning another language, etc…
This episode is dedicated to 3 financial goals you should have on your radar. How to set them – the game plan you need, and the problems that may occur if you do not set them.
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GOAL#1 – Be Debt Free
At the end of the month, you may be putting things on credit cards… and this may keep you from financial opportunities that can put you on the fast track. This one is simple to fix…
If you find yourself in a hole, STOP DIGGING.
The tough part about debt is that it is usually a self-inflicted wound (unless it’s a health issue, or you got laid off, or another rare circumstance like that). It is easy to get into. But the good news is, it can also be easy to get out of.
How?
With a game plan I like to call the 1-2 PUNCH.
1.) Decrease your expenses
If you are paying for a house or apartment – decrease the debt by getting a roommate or living with our parents or another choice to make. That’s hard because ego gets in the way. Once you do what you need to do, then you start to realize it is an awesome decision once you start to see results.
2.) Increase your income
We are so fortunate to live in a day in age of technology – there are so many ways to make money. That doesn’t mean you will LOVE all of these ways or that they will be all convenient, or that you will not need to make anything new.
Literally – if you have a car, you can now use it to work for you as a Lyft or Uber driver. It isn’t always so convenient, but when you get down to it, sometimes it needs to be about the numbers. You need to understand how much you need to make, and how long it will take.
For example, maybe you need to drive your Uber car 3 times a week for 3 hours, for 6 months to be able to pay off X bill. It’s an easier pill to swallow when you have an end date and the exact time.
There are so many work from home and part time opportunities. When we look to hire customer service for our company, for example, we look for work from home moms. There are a lot of companies that needs this type of service. No one wants to get off of their day job to continue to work – BUT they exist. You can find something that will allow you to get some extra money, even from the couch.
Another thing you can do is consider selling unnecessary stuff on craigslist or eBay. It is incredible what type of things you can get rid of… we have moved a few times and it’s amazing how much stuff you accumulate. You may think something is old or out dated… you would be surprised what people are looking for.
You can also get items at incredible prices and resale it online, too.
What I am saying is – be creative and open up your eyes to what you can do. Once you make up your mind that you do want to get out of debt, you will start to look out for what is possible. Nothing will be “beneath you” – except that debt that you want to get out of.
GOAL #2 – Be Comfortable
Most people skip over this – a goal to be comfortable. Until you know what it takes to be comfortable, you do not know what it takes to be wealthy (which is goal #3). How would you know how to get to the next level?
Let’s break down what it means to be comfortable…
1.) Food – be able nourish yourself and your body
2.) Shelter – a place to lay your head, not worried about being harmed
3.) Transportation – comfortable if you have a car, you can get to point b from point a
Maybe a few more things… vacation once or twice a year, maybe you have a house payment, but it’s not too much where you aren’t paying it off, you’re able to go out to eat it’s not like you’re broke and got to stay home and eat. This isn’t about keeping up with the Jones’ and being burdened by debt… this is living within your means comfortably.
Most people skip over retirement at the comfortable level. Most people want to worry about it later – learning how to invest later, 401k later, but “later” sneaks up on you. Being comfortable is about learning how to be so NOW and in the FUTURE.
A lot of people look over the “what if” scenarios. Like – what if we have a kid? That is extra expenses! Things can change. Or – what if you get laid of or your spouse gets laid of? These are scenarios that can throw a wrench into things if you are not planning right.
Other people do not plan when you pass away or when your spouse passes away. Do you have life insurance? That’s one way to plan for the future to ensure the level of comfort stays.
GOAL #3 – Financially Independent / Wealthy
Some people do not even think about making it to this. When you are a kid, you dream of ambitious things. You do not wake up thinking of the negatives to your dreams as a kid – you think everything is possible because no one told you what failure is.
But unfortunately as adults – this is where people shut down. They think awww we will never get there – that’s cute.
But people think about the STUFF with wealth.
The fact is you can become wealthy and financially independent with LESS STUFF.
Financially independent simply means that you have income without a boss and job, and ideally without a lot of effort. For example, if you own real estate or stocks.
Being wealthy is when you have time and money together. It doesn’t mean you have to have a lot of money or a lot of time – but you aren’t living check to check and could maintain the same lifestyle for a long amount of time.
So they both go hand in hand.
For example – Let’s say you generate $1,000 a month and that maintains your lifestyle. If that engine or whatever you have set up to make that can maintain itself for the next 30 years, then you are 30 years wealthy. You have 30 years to figure out something else before it “expires”.
Wealthy is determined how far out you can live your lifestyle in the future without disrupting how it is.
What are the keys?
You have to get through Goal #1. You cannot be in debt. You cannot have that stress in the money making lifestyle. Then you have to go through goal #2, and then you can set goal #3 where you get AHEAD of the game.
When you break down the cash flow quadrant – typically passive wealth happens in Business and Investor quadrant. (Check out the video below where I break it down more) Being an investor means you get to tag along with those who already built the best businesses.
What we did is put together a FREE Goal PDF – and this is to help YOU recognize your top 3 goals for this year and not only that, but the resources and action steps you need to make them happen. You can click the button to download that free PDF.
The way it works is this – let’s say you have Goal #1 to get out of debt. A Resource on your Goal Action Plan sheet could be a book on how to get out of debt, and then your Action Steps could be to to consolidate your credit cards and increase your income.
Use the Action Plan to write down when you want to get there and achieve your financial goals. And remember you will never start until you at least have it as a goal.
Step into this year – and every year – with purpose.
To check out more about the Cash Flow Quadrants mentioned above, watch the video here: