Before you jump in a car, you usually know your destination. In most cases you know how to get there. Why don’t we have the same philosophy for our financial future? Why do so many people live their life working away without a solid plan for personal finance? The answer is simple. Few people have a personal finance plan, because few people have a personal finance goal.
Today is the day you define what your personal finance goal is. Think big! Think long term. Think lifestyle goals.
Examples of long term personal finance goals:
- Retiring early in a mountain cabin while living off a nest egg of dividends
- Quitting your 9 to 5 and starting a business that fits around a lifestyle you engineered
- Generating enough passive income to travel the world indefinitely
Examples of short term personal finance goals:
- Paying off credit card debt
- Saving up an emergency fund
- Buying an income property
It is perfectly acceptable to define both long term and short term personal finance goals. However, your short term personal finance goals MUST always be in alignment with your long term lifestyle goals.
Now you know the difference between a long term goal and a short term goal. The next step is to take action! Write down both your long term and short term goals. Then, look for short term goals that inhibit progress of your long term goals. Get rid of those blockers. A simple example of a short term goal is buying a new TV. Is that going to get in the way of retiring early or saving for a nest egg? Absolutely.
As this blog develops we will share many tools to connect the dots of where you are now to your personal finance and lifestyle goals. If you liked this post be sure to comment below and share your long term goals!