Thursday, October 13, 2011

Planning Ahead - How to make goals for your future - Pt 2.

Yesterday, I talked about the levels of goals I use.
Today, I'll talk about how to use those levels to speed your progress to making your dreams come true!

Jack, Dreams are silly. 
Dreamers are lazy and always fail.

This is incorrect.
Dreamers are the visionaries of the future.

Many of the most successful (and famous) people in the world are dreamers.
CEO's, actors, inventors, pilots, astronauts, scientists, etc.

These people use their passion to do something that isn't commonly thought possible, and make that dream come true by following through.

I believe passion for dreams is at the heart of every goal (and success).

If you can't feel a warmth in your heart for a goal (or the payoff of that goal), then I believe it's nearly impossible to achieve it.

Take your big goal and make it smaller.

No, I don't mean moving to Idaho instead of Australia.

I mean you should break down your big goal into smaller, and more easily accomplished 'pieces'.

If you try to 'move to Australia on only $380.50' then you will be sorely disappointed when you fail to succeed on that goal.

But if you put that $380.50 a week into your 'move to Australia' fund, then you have accomplished a 'piece' of that larger goal. You can feel proud of that. You will be moving towards meeting your goal. And every time you do it, and see the balance increase, you will feel empowered and accomplished.

This sense of accomplishment helps drives us to our goals!

Build 'sub-goals' from the pieces of larger goals.

Take all of those large goal 'pieces', and make them into small 'sub-goals'. Smaller goals are easier to follow through on, and still give you a sense of accomplishment.

Plus, many small efforts will nearly always provide a better result then one large effort.

This is true in goals, and also in investment.

Putting it all together.

Let's run with the example about the person that wants to move to Australia.
Imagine that the person created sub-goals when she:
  • Broke down the saving into a weekly amount.
  • Concentrated on searching for good, discounted housing in Australia, instead of moving into a more popular, expensive area.
  • Worked hard to lineup a job for her when she gets there.
All of these smaller 'sub-goal's have a positive effect on her chances of success.

Cost to move to Australia immediately (housing, travel costs, no job): $ 200,000
Cash in pocket this week: $380.50
Immediate goal success rate: 0%

3 year deferral
Cost effect of deferring move 3 years: $120,000
(hunting for discounted housing, travel, and lining up a job in Australia)
Cash in hand from saving $380.50 a week (@ 1.5%) for 3 years: ~$60,780
Goal success rate: ~50% - She is short by approximately half. She may be able to make it, but maybe not.

5 year deferral
Cost of deferring move 5 years: $110,000
(hunting for discounted housing, travel, and lining up a job in Australia +1)
Cash in hand from saving $380.50 a week (@ 1.5%) for 3 years: $102,945
Goal success rate: ~92% - She has almost the entire amount in full, and has and excellent chance of making a good life in Australia.

By saving up, and achieving sub-goals, she has changed her chances of success from 0% to over 90%.

It's very similar if you have any sort of 'overwhelming' large goal, like paying off a house, or investing for passive income.

If your goal is overwhelming, break it up into smaller pieces that are easier to accomplish. 

Then get out there, and Start Accomplishing!


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