Ask what it is that you want in life and what is most important to you. Try writing down your answers as they come, without assessing them. Be as specific as possible in your stating what you want. “I want a lot of money” is a start, but “I want to be financially secure and retire by age 50” is more specific and better. Are your desires achievable? Are they realistic? Are they about you? They will need to be. You might have a good job, but can you manage to retire early? How would you do so?
Look again at your list of wants and desires and reassess it. What is at the top? Is your desire for financial security and to retire early really what you want most out of life? Ask yourself again whether it is doable. Are you sure that you can manage this goal or are you simply setting yourself up for failure? Try to be realistic and open-minded. Don’t embark on an overly ambitious dream if you doubt that it can be done.
Identify a long-term goal. Try, again, writing it down and be as specific as possible. “I want to retire at 50” is not as specific and achievable as a goal as saying “I want to be debt-free, own my own home, and be able to retire at 50 on an annual income of at least $50,000. ” The latter sets concrete benchmarks for success. Start to brainstorm pathways to success. How can you get there? What sort of job will you need? How much will you need to save every year?
Consider breaking up your ambition into smaller parts. This will make the plan less daunting and help to keep you motivated, working toward smaller, incremental goals. [5] X Research source Be specific again about timelines and what you want to achieve within a given time. For example, rather than just saying “Retire at 50,” think in terms of “By age 30 I want to have $200,000 in stable and growing investments. By age 40 I want to be 75% of the way to my financial goal. ” Ambitious? Yes, but concrete. You can even break steps into substeps, each with its own plan. For example, how do you intend to invest $200,000 before age 30? You’ll need to set aside enough money, talk to a financial adviser, and develop an investment plan. [6] X Research source
Seek expert help. For instance, if you’re interested in getting in shape, talk to a personal trainer. If your goal is financial, talk to a financial adviser. Inform yourself and utilize resources. You can teach yourself a lot about investment, for example, through personal research or by taking a financial planning course. Most importantly, be proactive. Your goals will not come true through wishful thinking.
Cultivate discipline. Studies show that students, for example, who exhibit more willpower generally perform better. Avoid procrastination, as well, as you are prioritizing short-term satisfaction. Get into a routine that helps you make progress toward your desires. For example, it will be easier to be physically healthy if you stick to an exercise schedule. If your goals are financial, sticking to a budget can do the same. Develop habits that keep you on track while avoiding ones that derail your progress. For example, avoid going to the mall if you tend to make impulsive purchases. Make a habit of immediately depositing part of each paycheck so that you can meet your savings goals.
For one thing, taking stock of progress will allow you to make necessary adjustments. What if you failed to meet one of your benchmarks? You tried hard but only saved $100,000 by age 30. You might need to tweak your long-term goal, either by moving retirement age back or by committing to save more. You may find that your plan needs to be changed. Maybe your original goal was too ambitious. A house, insurance, and a family cost more than you ever planned and might mean that an early retirement is impractical. Progress is also a very powerful motivator. By seeing how far you have moved toward a short-term or long-term goal, you will normally get a mental boost. [10] X Trustworthy Source Harvard Business Review Online and print journal covering topics related to business management practices Go to source
Recognize what you have accomplished by pausing, reflecting, and treating yourself. Did you finally run a full marathon? This calls for a toast! Or perhaps you got a long-desired promotion? Go out for a special dinner in celebration. These small wins show progress. They show you moving slowly but steadily toward your desire, which will help you to stay focused on the long-term.
Try to get to the bottom of any issues. What is the cause? Be honest with yourself. Say that you have not been saving enough. Is it an income issue – are you not making enough money? Or are you spending too much? Maybe it is an issue of time, and you need to put in more hours. Resolve to do what it takes to accomplish your goals. If you are facing a major obstacle, re-evaluate your plan and try to adjust. Some things are beyond our control. You may face illness, job trouble, or family issues that hamper your long-term vision. Focus instead on what you can control.
First of all, don’t panic. Failure may be difficult but it is not the end of the world. Remember to have reasonable expectations and try to look for the opportunities that arise from a setback. Adjust accordingly. Say that your original dream did not pan out. You don’t have enough money to retire early at 50. But can you compromise? Can you work part-time for ten or fifteen more years, saving more money? By then you’ll still be well-off and at a normal retirement age. Keeping a backup plan is a good idea. Hopefully you will have worked out different scenarios and tried to anticipate setbacks. Having a clear Plan B in place is smart. Can you continue to work? Will a career change help you to meet your goal?
Assess what went wrong. Look first at your planning. [15] X Research source Did you not anticipate an obstacle? Did you not give yourself enough time? Was it a failure on your part or something outside of your control? Look at your preparation. Say that you lost ground on your financial planning because you had to dip into your investments because of an emergency. Was this setback unavoidable? Or did you not have enough of an emergency fund set aside? Evaluate your execution. Try to honestly judge your effort. Was it consistent? Did you take missteps or did the setback have to do with external factors?[16] X Research source After you have assessed your effort, try to use what you have learned from it. Going forward, make sure not to repeat the same errors or to anticipate similar problems.
