What Is You BIG FINANCIAL GOAL?
Let me guess?
It's SAVE UP $100,000 by age30!
Or $1m by age40!
I've actually done a quick survey before and these were the most popular 2!
Putting a 2x or 5x annual income is also good!
If you don't have a high starting pay, consider this 2x or 5x formula that many favour.
The important part is to DEFINE IT, like
2x annual income by AGE30!
Or 5x annual income by AGE35!
Having a financial goal that is well defined will help you stay focused and be accountable! =)
And also,iIf you're keen on FINANCIAL INDEPENDENT RETIRE EARLY, read article below!
Some reflections on chasing financial goals
I wrote this post not out of leisure but of deep reflections.
We've all been trained by the school system to always aim for a bigger goal. Once you get one, move on to a bigger goal.
While setting an objective to work towards is often a powerful motivator that drives you to progress, it could also keep you hooked on this endless game of wanting more.
The truth is there's always someone who has more of what you want.
Got a 5-figure passive income? There are some with a 6-figure or 7-figure passive income.
Bought a HDB house? There're many friends who stay in a condo.
Bought a condominium? There're those who stay in bungalows.
I've a previous post below on how much it takes to own a $5m home below if you are keen.
If you seek goal after goal, hoping that will make you happier, it may not.
Unless you start off RIGHT! Do this right now
DO THIS: Remember that expectations are EVER CHANGING when you set goals
If you are aiming to get $1m by age40
How would you feel if.....
When you get there in 10years, a few of your peers have done it!
A few others have even exceeded it by a long margin!
They are truly wealthy and much more than financially free.
If you recall that years ago....
no one was a millionaire
But today, this attainment is NOT UNIQUE among your circle of friends!
How will you feel then?
Before setting off your journey, remember that things are not static. Your peers for one are also ever progressing.
Which is actually good!
If you are in a peer group where everyone is disastrous financially, you should really be worried.
Heard of this saying before: "You are the average of the 5 people closest to you!".
If you're looking to save more or hear a sharing on how much to spend,
I've a full breakdown of what I am spending on to help you do some calculations!
BONUS: Remember the WHY when you created the goal
For fellow parents out there, providing for your children is the fundamental goal.
That's why you found work.
Here's what Jack Ma has to say. To watch the video, click here
The essence of this passage is to say that in the never ending race to achieving goals there will be unhappiness and sacrifices. There is NO end to comparisons.
If you targeted 5x annual income to feel financial secure, then feel happy and secure when you achieve it!
If you aimed for $100,000 by age 30 so as to buy a house, it is job well done when you to reach there!
It need not be any higher amount. Hope it helped and wish you happiness =)
Last updated on September 8th, 2020 at 09:05 pm