What I am about to share with you is a profound exercise I learnt about setting and reaching financial goals which then help unlock other goals. Before then I used to do what everyone did - set new year goals and then work towards reaching them. I'd hit some, miss most, and end of the year, do it over again. The issue was I knew that merely setting new years financial goals wasn't cutting it. There was no system, no way to measure progress and I was looking for something that'd help.
Early in 2013, I stumbled on an exercise that has been the centrepiece of my financial goal setting strategies. The pleasant effect is that using this helped me realize every other goals in other areas, especially the ones that money would help come true.
Wanna know what it is?
Before I tell you what it is though,I have to warn you: this exercise might seem too simplistic. It might seem too obvious, I thought so too when I first learnt it, but I can assure it's it's incredibly effective IF YOU USE IT - and that's the rub, it won;t work UNLESS you use it
And you won't use it unless you believe it will work. It works, trust me. I use it and I have taught people in my company to use it. So go out on a limb here and give this the benefit of doubt.
Alright, let's get to it, shall we?
So the first issue with not reaching financial goals is not having a plan and to know how to set and reach milestones. It's not enough to to say, I want to make 2 million this year. How will you do it? How do you know that your daily work is such that you know without a doubt as long as you do it,you will reach =N=2 million?
This exercise helps you factor in everything you want to do in the year, and shows you exactly what you need to do to get the money that will pay for those things. Even better, it shows you the milestones you should be aiming for so hitting each, you know you're going to get it.
The guy I learnt this from, Frank Kern, called it "The Ultimate PIMP Lifestyle". You can call it whatever you want. Here's how it works.
Take a sheet of paper and write down everything you want to achieve this year - the ones money will pay for. That means no spiritual goals etc
1. HOMES: Do you have a vision in your mind of what your dream home is like? (number of bedrooms, square feet, amenities, unique details, location) How much does it cost? Do you want to buy? How much is it?
Would you rather rent for now? What's the annual cost?
Write it down.
2. VEHICLES: What car(s) do you want? What about your spouse? (model, color, etc.). Buying brand new? Or used? How much will it/they cost?
Write it down.
3. VACATIONS: Of course, you’re a hard working dude (or dudette) and you sure need a break! I know as you tweet it all the time. So where and when do you want to vacation? (number of times a year, location, lodging, how you’ll get there – first class, private jet, economy seat?).
4. NANNY/HOUSEHOLD HELP: Do you have kids? What about a nanny? Housecleaner? Driver? Personal assistant? Personal Chef (what will they cook? How often?) If you want any of these, how much will they cost you in salary each month?
Write it down.
5. SCHOOL/EDUCATION: Where do you want your children educated? (private school, University) How much will this cost you?
6. CHARITY: If it's your thing, which charity do you want to support? (name of org, type of charity, what is their cause, etc.). How much do you want to give?
7. ENTERTAINMENT: What about your entertainment? Flat screen TVs? Decked out stereo systems? Gangster computer systems? Cable TV? Netflix? Amazon Prime? Your internet Data? Roku? What do you want? How much will these (your choices) you cost over 12 months?
Write it down
8. Health Care: What about health insurance and health care? Do you have any ongoing health issues? What about preventative stuff (chiropractor, yoga, massage)? Are you and your family appropriately insured? What will it cost you to get this sorted for the year?
Write it down.
9. Gifts/Loans: Want to help your family members settle bills? What about friends? How much do you want to give them each month? What's the amount annualized?
10. SHINY OBJECTS: What about a random budget for shiny objects? Game consoles? Skateboards? Gold Chains? How much?
11. Insurance: What do you need to be protected? (Life insurance, disability, car insurance, etc.)
12. Anything else? What else do you want?
Now so far, this still seems like the regular "New Year Resolutions" list, right? But the next step is where the genius of this kicks in?
Step 2: Now add up all the annual amounts from your list. Write down the total amount
Step 3: Divide that total by 365 days which make up a year.
Write down the amount. Now you see exactly how much you need to make daily to make everything on your list come true in the year. But what you have is still a dream. It's just good intentions, and good intentions don't pay the bills.
At best, it's a daily income target, albeit, a high one.
So what do you do to make this a reality? Now you have a variety of options.
1. Stay in your job and work harder...
and hope you get promoted to an income level that guarantee this amount. But that's most likely never going to happen.
Well then you can
2. Get a new job that pays enough to earn this.
This might just not work because it'll take you a while to get this new job if ever.
3. You can start a business (on the side if you already work and don;t want to quit) that will create this income. I know from experience which kind of businesses you can do using the internet that can make these kind of monies.
But let's do some math here.
Say your annual dream income is =N=12 million, this means you need to earn =N=1 million per month and =N=32,877 daily, right? So start this thing on the side. And lets say you make a profit of =N=11,000 each item you sell.
All you need to worry about is selling just 3 of the items everyday. Once you do,you get =N=33,000 which hits your daily goal.
All you ever "worry" about is hitting =N=33,000 daily or selling 3 items daily.
That's a bite-sized milestone thats not longer intimidating.
How easy is it to make =N=33,000 everyday? It is,believe me. I do it, plenty guys I have taught and know do it. Anyway go use this strategy. Let me know if it helped.
Gracias. 2020 awaits