In my last blog we discussed the merits of building and maintaining a proper financial plan, so you can see what your current cashflow looks like based on existing habits and the impact of new financial decisions.
We looked at creating a list of all the things you want to “Be, Do and Have.”
In this blog I want to talk about the importance of goal setting and having a strong enough reason “why”, which will empower you to take action.
A goal without a plan and without action is simply a wish.
Many people I meet in a professional capacity tell me about their current position and ask “what should I do?”
When presented with this question, I answer with another question; “what do you want?” Before looking at what you should do, we need to understand what you want.
The first step in this process is to create your “Be, Do and Have” list, which I covered in my last blog. Once we have your list, we need to prioritise the items on this list in order of importance to YOU. Some of the items can be of equal importance.
At this point we can start to look at your reasons “why.”
We do this by asking you a few very simple questions to start creating a burning desire, which will move you to action.
Just for fun, if you have the inclination, answer the following questions as you read on.
If for example, your goal is to retire at age XX and travel the world, the first questions I would ask are:
How important is it for you to retire at XX and travel the world?
Why is it important for you to retire at XX and travel the world?
First answers tend to be quite standard, but without much feeling or emotion – e.g. it’s very important because I will have my health to enjoy it.
The next step is to make it real by clearly visualising and planning what YOUR world trip would look like and how it would make you feel – let your imagination run free.
Questions can include:
Where exactly do you plan to go?
How long for?
What accommodation do you want to stay in – hotels (what star / what facilities), apartments?
How will you travel – plane (what class), train, car, boat?
What do you want to see or experience on YOUR tour?
Write down your answers. Write down also how you would feel doing X, Y and Z.
Working together we build a picture of everything you would like to do on YOUR experience and how it will make you feel. Make it real.
We next look at how much it will cost, and we can show you how to achieve it within your plan.
We have a real goal. We have created a plan and can put it into action to achieve YOUR goal. YOUR goal to retire and travel the world. It is now something YOU can look forward to enjoying because it’s real. It’s happening!
Because its real and backed by feeling, you should now have a stronger reason why, than “I want to be young enough to enjoy it.”
Out of interest, if you have been answering these questions, writing down your answers and how it would make you feel, do you feel like going on a world tour more now than you did before reading this?
I know I do having written it!
Imagine looking at YOUR progress towards this target every time we meet and the sense of achievement.
We are all unique and as such so are our goals. While the above is only an example, the principles can be applied to any goal.
Write it down, make it real and feel what it would be like. Now how would you feel if you couldn’t do it.
If it’s a real goal, backed with desire, you can find a way and we can help you.
In my next blog I will talk about how to best structure your savings and investment for the most tax efficient returns, and how to protect those your plan in the event of a disaster.