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"Financially independent people seem to be better
able to visualize the future benefits of defining their
goals."
- Thomas Stanley and William
Danko, authors of
The Millionaire Next Door
If you don't know where you're going, you'll probably never
get there. That's why it's important to establish financial
goals before you even start to think about investing your
money.
Exercise:
Establish your goals by following these 3 steps:
- Look into your future.
- Imagine the sort of house you want to buy, the neighborhood
you want to live in, how many children you want to have,
what colleges you want them to attend, where you want to
retire…that sort of thing.
- Write your goals down on a piece of paper, categorizing
them by what age at which you want to accomplish them.
For example:
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Age 25 - 35
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Age 35 - 55
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Age 55 - 75
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Buy a house in Bel Air
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Send children to UCLA
Send children to graduate school
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Build a lake house on property Grandma Kelly left us
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Have two children, preferably a son and daughter
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Host daughter's wedding for 200 people, including sit
down dinner
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Travel abroad one month out of each year
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Establish
Your Goals
