THE DIFFERENCE BETWEEN GOALS -
AND DREAMS

DO YOU HAVE GOALS - OR DREAMS?

We all think about what we'd like to do, achieve and have in our lives. We think about what would make us happy. These are our dreams, our wishful thoughts.

Most people think about the things they want and wish for without writing down an action plan to fulfill those wishes. Without a plan that they can stick by, it will be just that... wishful thinking.

How many of us have made New Year's resolutions to ourselves and to our family, but then failed to follow through with them? There's a good reason why this happens to all of us. Ask yourself:

Do I have a goal, or do I have a dream?

What's the difference?

One is specific. The other is vague.

So try being specific. For example, everyone says "I want a lot of money". This isn't specific enough. It's merely wishful thinking.

Setting financial goals is the most important part of your financial planning process. Clearly define what they are and make sure you feel comfortable with them.

A vague, unrealistic dollar amount of what you would like to achieve and a lack of motivation will only lead you to procrastinate.

That will lead to inactivity and...

More than likely, you'll end up falling short of achieving what you wanted in the first place. You don't want that to happen!

What is a lot of money to you? Is it ten thousand dollars or ten million dollars? An achievable amount is specific, positive and realistic.

The dollar amount must be within your ability to achieve it, within your income and your resources.

Before you "plant your money", it's important to know why you're doing it and to set a specific total amount of how much money you want in the long run. If you start saving and investing your money and have no clear purpose, then it's sort of an empty exercise, without meaning, and it will be incredibly easy to slack off and fail.

Work towards something with a purpose in mind, towards something finite.

Take out a pen and a piece of paper and write down what you'd like to achieve financially. When we do this, it will increase the possibility of actually reaching it.

When you write it down, it can also help you decide if you really want to put in the effort, time and money.

Write down the specific steps you need to take to achieve what you want. List what you need to do in the order in which you need to do them in (refer to the Pay Yourself First page on how to start saving money automatically).

Write down beginning and ending dates.
This will help you not procrastinate.

Write down the answers to the following questions:

Who -- Who is working towards the goal? Just me?
What - What will I do with the money?
When - Include specific dates in your written statement.
Where - Where is the money coming from to finance this?
Why - Why is my goal so important to me?

Dare to dream, write down your goal, but be realistic about what you can attain.

Ask yourself the following questions and be specific in your answers:

What is my target dollar amount?
eg; 1 million, 2 million, 10 million?

How much time can I invest for?
eg; 10 years, 20 years, 30 years? (This, of course, will be age dependent)

How much money can I put towards my goal?
eg; a dollar a day, five dollars a day, 20 dollars a day?

What is my purpose in becoming wealthy?
eg; to live on a tropical island, to travel the world, to write a book, to help starving children...

What type of interest can I get on my investments, after tax?
eg; 4 percent, 8 percent, 12 percent, 20 percent?

Without knowing what is important to you, you will find achieving anything a hard process. Think about what is important to you and what you value. Your goals should simply be an extension of your values.

If you really set your sights on something specific, it will be easier to be committed to it, to practice discipline, and to forego things that would be nice to have now for the things you really want.

Some motivational thoughts:

IDEAS, THOUGHTS AND DREAMS WILL ONLY GROW AND HAVE VALUE IF AND WHEN YOU ACT UPON THEM

PLANNING BRINGS YOUR FUTURE INTO YOUR PRESENT

NO ONE BUT YOU CAN PUT YOUR PLAN INTO ACTION, SO YOU HAVE TO TAKE THE FIRST STEP

PEOPLE NEVER PLAN TO FAIL - THEY JUST FAIL TO PLAN

How true that is!

Always keep sight of what you want to achieve. You'll need qualities that the wealthy have perfected: self-motivation, discipline, commitment and patience. With these, you will take control of your money and achieve your financial dream.

After writing down and setting up your financial goal, sit down with your children and show them how they too can implement the same method for their financial future. They have the power of time on their side, so the sooner they start, the wealthier they will become.

TEN REASONS WHY YOU MAY NOT BE SUCCESSFUL

PROCRASTINATION

GOAL QUOTES