Goal Setting - Aggressive Goal Planning
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Having a goal is very important in the way to achieve financial freedom or achieve anything in our life. With a goal, we will have the power to take action and with the appropriate action, we can achieve anything in this world.
Come back to personal finance. We all know and hopefully clear with what we want in the future. Different people have different goals - retirement, college, rich and wealthy and so much more. Today I’m not going to talk about goal setting but about how aggressive your goals are.
Let me share with you one article that I found and quite suitable for the topic “How aggressive your goals areâ€Â.
Below is the article :
Hopefully we all have goals, what I want to do is challenge you to rethink, restructure and re-plan your goals.
The problem with most people�s goals is that they sound something like this:
�I want to have a lot of money in passive income every month and I want to have it very soon.�
How much is a lot of passive income? $1,000 / month? $10,000 / month? $1,000,000 / month?
How much time do you have before very soon is here?
How can you create a lot of money very soon?
Steps in Creating Aggressive Goals:
1.)In order to set a destination of where you want to go, you first need to know exactly where you are. Create a budget if you already don�t have one. Know exactly what your monthly expenses are now, and how much debt you have.
2.)Decide on the physical amount of money you want to posses. It can be an amount of passive income you want to have coming in monthly or yearly. It could be a physical amount of money like $500,000 cash or it could be $34,235 which would make you debt free.
3.)Choose a specific time that you will achieve the above amount of money. It could be 2 weeks from now or 20 years.
4.)Before you decide on a plan of how to create the amount of money that you want, decide in what way you want to create it. There is an infinite amount of ways to become wealthy so make sure the method you chose fits in comfortably with who you are.
Now think about what you have to do in order to create the kind of money that you desire in the amount of time you desire.
If you want to achieve a passive income of $5,000 dollars a month and you want to achieve it through real estate investments. You might create a plan like this:
I want $5,000 in passive income from my real estate investments and I will achieve that amount of income in 5 years.
Once you have this outlined you can begin to create a path between point A (where you are now) and point B (where you want to be). For example:
-In order to create $5,000 a month in passive income in 5 years I would need to average $1,000 of passive income per month each year.
-I would like to do that with Single Family Homes.
-In order to create $1,000 a month in new passive income from single family homes, I need to purchase 5 homes a year that each has a positive cashflow of $200 a month.
-In order to purchase 5 homes a year I need to purchase on average 1 home every 2 months.
-If I want to purchase a home every 2 months I need to call 75 for sale by owner ads a month.
Now you have a complete road map in front of you to take you from A to B.
What if you would rather invest in multiunit properties? You might create a plan like this:
-In order to create $5,000 a month in passive income in 5 years I would need to average $1,000 of passive income per month each year.
-I would like to do that with Multiunit Properties.
-In order to create $1,000 a month in new passive income from multiunit properties, I need to purchase 2 properties a year that each have a positive cashflow of $500 a month.
-In order to purchase 2 multiunit properties a year I need to purchase on average 1 property every 6 months.
-In order to purchase 1 property every 6 months I will need to drive by every multiunit apartment on the MLS every month.
Now that you understand how to create your road map, I want you to try something.
Take the amount of time that you set as when you would like to achieve that amount and cut it in half.
How do you feel about your goal now?
Are you a little uncomfortable with what you want to achieve in the limited time that you have to achieve it?
Well if you have a goal like a lot of money very soon, than half of real soon is tomorrow, so I would think you would be a little uncomfortable.
Let�s take one of the above examples and apply the 1/2 rule to it.
Single Family Home Example (with 1/2 rule):
-In order to create $5,000 a month in passive income in 2 1/2 years I would need to average $2,000 of passive income per month each year.
-I would like to do that with Single Family Homes.
-In order to create $2,000 a month in new passive income from single family homes, I need to purchase 10 homes a year that each has a positive cashflow of $200 a month.
-In order to purchase 10 homes a year I need to purchase on average 1 home every month.
-If I want to purchase a home every month I need to call 75 for sale by owner ads a month.
-I also need to search the MLS for distressed sellers.
-I also need to open up my area of buying homes and look in other markets.
-I will get in touch with investors in my area that flip homes and let them know I am looking for buy and holds.
What did we have to do to make the above goal possible in half the time?
We just had to be a little more creative. We had to think about other ways to come into contact with homes that will take us towards our goal.
Try it out for yourself. Think about what your goals are, and then cut the time you want to achieve them in half. If you get nothing else from this exercise you will at least open up your mind to thinking creatively about how to achieve your goals.
There are two reasons why I think this exercise is important for people.
1.)Because I think most people don�t give themselves enough credit.
2.)Because I think most people don�t think creatively enough.
We have every opportunity available to us. We are all powerful human beings. What limits what you can achieve is only what you think you can achieve.
So to sum it all up�
Create a plan for reaching your goals. Then cut the time you gave yourself in half.
Good luck to you all,
INVALESCO
~Big Enough to Help � Small Enough to Care~
www.reitoolbelt.com
Some words from Me:
- We must have a clear goal, $5000 of passive income after 5 years.
- Set a plan for it and do the simple calculation.
- Cut the plan to small piece so easy to take action and maintain the confidence level.
- Be flexible with your plan and change according to condition.
Source : Richdad.com
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