What's Your Financial Goal?
When it comes to your personal finances, do you know exactly what it is that you want?
Ask this question to 100 people, and do you know what the most common answer is? A lot! Or, I don’t know.
The main reason most people don’t get what they want is that THEY DON’T KNOW WHAT THEY WANT!
Have you ever heard of the law of clarity? It’s based on the concept that you have a far greater chance of achieving what you want once you clearly know what your goal is.
How can a marksman hit his target if he doesn’t know what the target is? But the marksman who knows exactly what his target is increases his chances of hitting it many times over.
I like an expression I learned from Harv Eker of Peak Potentials Training during the Millionaire Mind Intensive Program, “Clarity leads to Power”.
So what are your financial goals? What do you want to accomplish financially? Do you want to earn enough to survive? Maybe you just want enough to pay your bills and maintain the lifestyle you have now? Do you want to become a millionaire? Do you want to be able to retire someday? What exactly is it that you want to achieve financially?
Here’s the plan for a lot of folks. They want to work and make a lot of money. Right? They hope to save some of it. Right? Then at some point in their life they hope to retire. Right? And finally, they get to enjoy their savings in their retirement years.
The big problem with this thinking is that using this approach, there’s a very good chance they’ll run out of money before they die. This plan is flawed, but unfortunately, it’s the plan that is used most often. It is the completely wrong way to approach financial success.
If you keep spending money without replacing it, what’s going to happen? You’re going to go broke! Therefore, you need to have another approach.
How would like to have the CHOICE to be able to do what you want with your time without having to worry about earning a living? Especially when you’re 65 or 70? Therefore, the important word here when it comes to success in your personal finances is CHOICE.
The key to having CHOICE is based on having financial freedom.
So, what is financial freedom? How do you define financial freedom?
Again, using the definition that Harv Eker uses, it’s "the ability to live the lifestyle you desire without having to work or rely on anyone else for money." That way, if you work, you work by CHOICE rather than by necessity. You work because you want to contribute to society rather than work because you have to.
Of course, living the lifestyle you desire is going to cost money. Right? For some of you, more than others.
So, to be free, we need to have money coming in without working. And money coming in without working is called PASSIVE INCOME.
Until you realize that without passive income you MUST work to generate the money you need to cover your expenses, you will be a slave to work for the rest of your life. As soon as you stop working, what happens to your income?
Virtually everyone in our modern society is completely focused 100% on WORKING INCOME. And the big problem with working income is that you have to work to get it!
YOU CAN NEVER BE FINANCIALLY FREE IF YOU JUST FOCUS ON WORKING INCOME.
Do you get it?
So let’s begin by identifying exactly how much you need to have coming in each year in order for you to live the lifestyle you desire? In fact, it might be easier to think more about how much you need coming in each month to live that lifestyle?
What’s the MINIMUM amount of money you would need to have coming in WITHOUT WORKING so that you would have the CHOICE of whether or not you wanted to work anymore? Remember to add enough to cover your taxes too!
Do you need $3,000 a month? $4,000? $5,000? $10,000? $20,000? $50,000?
Exactly how much money do you need coming in every month to be able to say, “Even though I can’t buy the yacht or drive the Mercedes, I have enough coming in that I don’t really have to go to work today, or ever again if I don’t want to.”
This becomes your first level of financial freedom. Are you free to shoot for more? Of course you can. But let’s find a baseline, and then add more to the party once we get there.
Here’s an assignment for you. Reflect on exactly how much money you need to have coming in each month in order for you to reach financial freedom. As I mentioned before, be sure to add enough to that number to pay your taxes. Add 30% for that. So, if you want $5,000 a month to live on, you will want to have $6,500 coming in pretax. Got it?
Clarity leads to power. Once you know what your monthly financial goal is, you will be far more likely to hit the target.
There are systems that will assist you to get to your goal automatically. You’re going to be learning a lot more about these systems in the upcoming posts. Don’t miss them!
Namaste.
Jeff
Ask this question to 100 people, and do you know what the most common answer is? A lot! Or, I don’t know.
The main reason most people don’t get what they want is that THEY DON’T KNOW WHAT THEY WANT!
Have you ever heard of the law of clarity? It’s based on the concept that you have a far greater chance of achieving what you want once you clearly know what your goal is.
How can a marksman hit his target if he doesn’t know what the target is? But the marksman who knows exactly what his target is increases his chances of hitting it many times over.
I like an expression I learned from Harv Eker of Peak Potentials Training during the Millionaire Mind Intensive Program, “Clarity leads to Power”.
So what are your financial goals? What do you want to accomplish financially? Do you want to earn enough to survive? Maybe you just want enough to pay your bills and maintain the lifestyle you have now? Do you want to become a millionaire? Do you want to be able to retire someday? What exactly is it that you want to achieve financially?
Here’s the plan for a lot of folks. They want to work and make a lot of money. Right? They hope to save some of it. Right? Then at some point in their life they hope to retire. Right? And finally, they get to enjoy their savings in their retirement years.
The big problem with this thinking is that using this approach, there’s a very good chance they’ll run out of money before they die. This plan is flawed, but unfortunately, it’s the plan that is used most often. It is the completely wrong way to approach financial success.
If you keep spending money without replacing it, what’s going to happen? You’re going to go broke! Therefore, you need to have another approach.
How would like to have the CHOICE to be able to do what you want with your time without having to worry about earning a living? Especially when you’re 65 or 70? Therefore, the important word here when it comes to success in your personal finances is CHOICE.
The key to having CHOICE is based on having financial freedom.
So, what is financial freedom? How do you define financial freedom?
Again, using the definition that Harv Eker uses, it’s "the ability to live the lifestyle you desire without having to work or rely on anyone else for money." That way, if you work, you work by CHOICE rather than by necessity. You work because you want to contribute to society rather than work because you have to.
Of course, living the lifestyle you desire is going to cost money. Right? For some of you, more than others.
So, to be free, we need to have money coming in without working. And money coming in without working is called PASSIVE INCOME.
Until you realize that without passive income you MUST work to generate the money you need to cover your expenses, you will be a slave to work for the rest of your life. As soon as you stop working, what happens to your income?
Virtually everyone in our modern society is completely focused 100% on WORKING INCOME. And the big problem with working income is that you have to work to get it!
YOU CAN NEVER BE FINANCIALLY FREE IF YOU JUST FOCUS ON WORKING INCOME.
Do you get it?
So let’s begin by identifying exactly how much you need to have coming in each year in order for you to live the lifestyle you desire? In fact, it might be easier to think more about how much you need coming in each month to live that lifestyle?
What’s the MINIMUM amount of money you would need to have coming in WITHOUT WORKING so that you would have the CHOICE of whether or not you wanted to work anymore? Remember to add enough to cover your taxes too!
Do you need $3,000 a month? $4,000? $5,000? $10,000? $20,000? $50,000?
Exactly how much money do you need coming in every month to be able to say, “Even though I can’t buy the yacht or drive the Mercedes, I have enough coming in that I don’t really have to go to work today, or ever again if I don’t want to.”
This becomes your first level of financial freedom. Are you free to shoot for more? Of course you can. But let’s find a baseline, and then add more to the party once we get there.
Here’s an assignment for you. Reflect on exactly how much money you need to have coming in each month in order for you to reach financial freedom. As I mentioned before, be sure to add enough to that number to pay your taxes. Add 30% for that. So, if you want $5,000 a month to live on, you will want to have $6,500 coming in pretax. Got it?
Clarity leads to power. Once you know what your monthly financial goal is, you will be far more likely to hit the target.
There are systems that will assist you to get to your goal automatically. You’re going to be learning a lot more about these systems in the upcoming posts. Don’t miss them!
Namaste.
Jeff
posted by Jeff Fagin at 6:39 AM
3 Comments:
Jeff,
I've already identified from my budget, what I need in order to make this happen. I am currently working on creating the passive income to make it happen.
Jeff
The financial number for toady is clearer.
Larry E.
I have a number. I am not thinking
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