We all should place a special emphasis on setting financial goals. In a
time where financial insecurity is plaguing our nation, it is more
important than ever that we each make a point to include financial goals
in our goal planning endeavors.
The prosperity that our nation will experience is heavily dependent upon our individual prosperity.
In order to achieve true success financially, we must place effort into the task and utilize our individual abilities appropriately when goal planning.
However, our acts pertaining to wealth may be no wiser than that which we think when it comes to finances.
In the same respect, our thoughts do not have the capability of being wiser than our understanding.
I have discovered, throughout my life, that we are all ambitious to achieve financial success.
That is why I have decided to compose this self-help guide. I want to offer my insight on how to make money, keep the money that is made and how to make money turn into more money. Here, I will share what I have learned about setting financial goals and achieving them.
In my longing for financial success, I have read a great deal of books, talked to many financial experts and sought the secrets of the wealthy. While I managed to take a little from every act I indulged in to learn about setting financial goals, there was one single book that had the most profound effect on me and resulted in the highest level of success when it came to my wealth and goal planning to make my wealth larger.
The book is called “The Richest Man in Babylon” written by George S. Clason. To this day, I still have my copy of this book and I have provided copies to relatives and friends that I had a desire to assist in acquiring wealth. If you get a copy of this book, it clearly states on the back “This is the book that reveals the secret to personal wealth”.
I could go on and out about this book and the personal impact that it had on my life. Instead, I am going to give you an overview of what I believe to be the most important lessons that it taught me and has helped me teach others when it comes to money and goal planning. When it comes to setting financial goals, the most important secret to prosperity is really simple. It is that you should know that a portion of all of the money that you make is yours to keep.
If you are setting financial goals, the next strategy is to control how much you spend. While I am not a financial expert and nothing fuels my passion for helping others build wealth other than the satisfaction of being so, I do know it is imperative to control how much you spend. If you fail to do this, your expenses will continuously grow until they equal or exceed your income. When this happens, debt will start to follow you.
When goal planning involves money, you must learn this fact. Taking the time to setting goals that are financial in nature means that you do not want your expenses to meet or exceed your income. It means you want to save, handle your financial obligations and have money that may result in earning more money.
You must make sure that when you designate your 100% earnings, that no more than 70% is designated to expenses. Remember the portion that is yours to keep? That should be 10% of your earnings. Therefore, if you make $2000 each month, $200 of it should be saved (the 10%) and only $1400 should be used to handle your living expenses (the 70%).
If you are setting financial goals and you save 10% and put 70% towards your living expenses, simple math will inform you that you still have 20% left from the amount that you have made. At this point, you are probably hoping that I will instruct you to spend it on anything you want, right? I wish I could.
However, in order to achieve true wealth and accomplish all of the financial goals that you have, you must put the remaining 20% towards your debts. This is very important when it comes to goal planning and money.
It does not matter if you owe credit cards, you owe an individual that has loaned you money or have an outstanding loan, this remaining 20% should go towards the debt until it is paid off. Once you have paid off all of your debts, you may place this 20% in with the 10% that you are keeping for yourself. When setting financial goals, you will find that this brings your total savings up to 30% of your income.
When setting financial goals, there is something very important that you need to understand – it is not enough to just save and save and save. In “The Richest Man in
Babylon”, George S. Clason explains that we need to make sure that our money is making more money. That, my friend, is the true secret to acquiring wealth. In his words, “Make thy gold multiply”. He continues by saying, “…a man’s wealth is not in the coins he carries…it is the income he buildeth…”
Once you have created a budget, started saving a portion for yourself, designated an amount for living expenses and paid off your debts, take the money you have earned and use it wisely so that it creates more money.
By setting financial goals in the way that I have outlined here, you will not only have the ability to be financially stable, but you will have the ability to experience financial freedom at its best. Soon, you will find that all your finance related goal planning truly starts to pay off.SELF IMPROVEMENT PROGRAM › GOALS › FINANCIAL