How many of us would love to be independently wealthy and not have to worry about finances or what’s going on in the economy? I’m pretty sure that your hand just went up and you’re jumping up and down saying, “Oh me me me!” I know I feel the same way too!
There are certain things that one needs to do in order to get to generating wealth for yourself and securing your financial future. I’m going to introduce to you those building blocks so you can be well on your way.
Define your plan by building your road map
The first step is to define where you want to be. I know you are probably saying I already know where I want to be and that’s rich! Well there’s an old adage that says “if you don’t know where you came from, you won’t know where you are going.”
My goal is to help you to get on task and on target for doing what you need to do to achieve your goals. That means facing things you don’t necessarily want to do or look at. The best way to get to where you want to be on that road is to design a roadmap which will be your financial plan. This plan will serve as the driving force to propel you to where you want to go. You will be able to identify what you want to save and invest for.
Identify your Goals
As part of this first step you need to list your most important goals and decide how long it will take to get there. Your goals can be broken down into short term, midterm and long term goals.
- Short term goals typically are less than 3 years and take less risk. Generally you would hold your cash in the bank.
- Mid-term goals take 3-10 years which would be more to accumulate assets. Perhaps you are looking to save for a down payment of 20% for a house. It may take you more than 3 years but less than 10 years or greater to do so.
- Long-term goals would generally be 10 years or greater because there is a long time horizon or it is something that is needed far off into the horizon. An example may be saving for retirement. It is important to identify these types of goals so you can align your plans and work accordingly to get to where you want to be.
Take 30 minutes. Sit down and identify what you want you want to accomplish for the next year, 5 years and 10 years. It can be difficult to focus on these things but you need to shift your thinking to that promotes living on purpose and allows you to act with intention. If you are able to do these things now, you will find that you will be closer to achieving your goals and have a more enjoyable life which will enable you to live well.
Disclaimer: The purpose of this blog post is to serve as a point of reference and it is for informational purposes only regarding the topic of personal finance. I will attempt share lessons and information that I’ve learned along the way. While I do have over 10 years of experience in the financial market, this blog should not serve as your main source of financial advice nor does this blog serve as a solicitation for clients. You should ALWAYS do your own research and consult your own financial professional when making decisions about your personal financial future.