Friday, May 22, 2009

How Much Money do you Want to Make?

One question we all have to ask ourselves is "How much is enough?" What are our financial goals?

Bob Proctor says that our financial goals + expenditure = the money we want to be making. So if your goal is $10,000 surplus a year, and your expenditure is $60,000 a year then your income goal will be $70,000. Likewise, if your financial goal is $100,000 surplus and your expenditure is $120,000 then the money you want to make is $220,000.

One way to calculate how much money we want to make is to write down everything we want. Then go through each item and find out how much money that will actually cost. This way, when you are thinking about your financial goals or reading your goals, you have a thought to associate it to, it actually means something. If you want to make money, numbers aren't motivating, but images are. Think about the lifestyle you want to live. What vacations do you want? Would you like to own your house outright, free and clear? What sort of house do you want anyway, and where? How do you want to give to others? What sort of clothing, car, and food do you want to provide for yourself and your family? How often would you like to eat out? How much money do you want to have left over after all of this?

The next step is to take this wealth goal into how you are going to make money. What vehicle will you use? What will you do to get it?

Sometimes short term goals are necessary to help us get on track. If our long term money goal is $220,000 a year, but we currently make $60,000, we can set small goals that when we follow will lead us to our $220,000 a year goal. In the upcoming posts we'll discuss what to do to actually make that money.

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