By: Dan Cavalli
Business and Money Strategist
In order to achieve financial independence, you need to develop a clearly defined set of goals. A list of goals is essentially a wish list of everything that you would like to achieve in the future.
For example: If you want to own five rental properties and a vacation property in Cancun, your goals would include these two wishes. Of course, goals at this point are not clearly defined or achievable; they are merely a dream. What is needed to turn your wish list into an attainable set of goals is a plan.
Before you can set goals, you need to identify them. Take some time to write down the things that you would like for your future. Stay away from vague goals such as “to be wealthy.” Instead, formulate concise goals such as “to be able to retire” and “to be able to take care of my family financially if I die.”
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Do not be afraid of adding things to your list of goals that seem unattainable. You may be able to make some things happen that you never thought possible with a little bit of clever planning. If your goals turn out to be unrealistic, you can make adjustments later.
Next, you need to figure out how much money it will take for you to reach your goals. Let’s use the first example involving rental properties. If you wish to own five rental properties, figure up how much it will cost to purchase five rental properties using real estate comparables in your area. Learn to save more here
Be sure to allow for appreciation if you do not plan on purchasing for a while. A house will cost you more ten years from now than it does today. Now, you need to break your goals down into increments so that they are easier to achieve. Break each goal down into short term (0 to 1 year), medium term (1 to 5 years), long term (5 to 10 years) and longest term (10 plus years).
For example: If you wish to own five rental properties in 15 years, your goal breakdown may look as follows: * Short term – Start savings plan and contribute (blank) percentage of income each week. * Medium term – Invest savings into 10-year savings bonds. * Long term – Pull money from retirement plan and cash-value insurance properties. •Longest term – Purchase rental properties. Get weekly updates about money and business here
Every goal that you can come up with can be broken down this way. When you break goals down into easily attainable steps, they become easier to accomplish. Breaking down goals this way also allows you to identify goals that might be unreasonable under your present set of circumstances.
If reaching a goal requires saving 150% of your income, you need to make adjustments in your current life to make your goal possible. Breaking goals down also gives you hope. By concentrating on one step at a time, you can stop dreaming about your future and start taking the necessary steps to make your dreams become reality.
You can use all these strategies to make money, reduce debt and improve your life but it means nothing unless you can earn money without having to work. Get my FREE passive money making secrets at: http://www.the-richest-man-in-babylon.com
About Dan Cavalli He learned financial fitness firsthand. In 1995, he started his first national business with nothing, but grew it to more than 35,000 customers and $140 million in revenue in less than 18 months. “The Financial Review,“ Australia's leading business newspaper named Cavalli as one of the country's “Internet’s Untold Millionaires.“ More recently, Cavalli's mission has shifted to helping others achieve similar success. He is the author of the internationally sold financial book, "Blueprint for Making Millions."