Option #2 – Set Your Goals

After you’ve figured out your current financial situation, it’s time to set goals. It is very important to set goals so you can make sure your day to day actions are geared towards achieving those goals. I like to break my goals into time buckets so anything within a year is short term, one to five years is medium term, and anything over five years is long term. I’ll list my goals below and then go over how I came to those, and what I am doing to achieve them.

Short Term

  • Earn enough from my non employment income to take $3,000 USD with me to Vegas in November for fun money.
  • Save for landscaping for my backyard next spring ~$7,000 (hopefully less).

Medium Term

  • Save for a Scandinavian trip in 2021 ~$10,000 (hopefully less).

Long Term

  • Never wake up to an alarm clock ever again.

We don’t have too many money related goals, but the ones we do have, we care very deeply for. This is a critical thing in making sure we do everything in our power to get it done.
For first goal, I do a couple of little things on the side that help me generate a bit of extra money for stupid/fun things like Vegas, but I’ll get into those in a future post.

To achieve the two saving goals, my wife and I naturally live well below our means. We are also very motivated to get our less than desirable yard fixed, and we greatly enjoy travelling, so we review any significant household expense to ensure that we don’t spend needlessly on things that would delay the accomplishment of those goals. I also prepare an annual cash flow budget so I can always see the end goal in sight. Seeing each month pass where the cash flow is (or very close to being) as expected is very motivating and only encourages us to stay on track. We also make sure to celebrate small wins because between the present and achieving your goal, you still have to live your life.

I know final goal of never waking up to an alarm clock seems very abstract. The only way I can think of doing that currently is working hard to save as much as possible, invest wisely and be able to retire as early as possible. It could also mean landing a job that gives me flexibility in my hours, or some other opportunity I haven’t even thought of yet. For now I’ll just stick to the old fashion way of building and growing my retirement savings.

Final Thoughts: I highlighted a few words in the body of this post because I find these things are key to setting good goals and achieving them. First and foremost, it must be something you care deeply for. This is important because it is likely going to require some sacrifices along the way (living below your means), whether it’s a purchase or an expensive dinner night out with friends. If you’ve done something to get you ahead of schedule in reaching your goal, make sure to celebrate in a way that boosts your happiness. Think of it as a cheat day when you’re losing weight, it will help you re energize which is needed on a long journey. I would love to hear some of your goals. Feel free to comment below or reach me in any of the ways below. Going forward I will get deeper into actual personal finance tools that will hopefully help you achieve your goals sooner. Be sure to check back every Tuesday for a new post!

Have a Great Day!

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