“Let’s meet tomorrow in Paris”
Imagine living in New York and me telling you this, what would happen?
You would probably go to JFK airport and then fly to Paris. Once in France how would we meet each other?
There are 2 243 833 inhabitants in Paris. You don’t know both the time and the place to meet (You could use a phone or other strategies but let’s forget that for the case). I think you will have a hard time finding me in the city, right?
Why? Because “Let’s meet tomorrow in Paris” is not a clear objective.
We should have determined precisely the hour the place and some details about how to get there. That seems fairly logical don’t you think?
So why don’t most people use that logic for their financial success?
Most of the time you see the future as something fuzzy. If I ask you what your objectives are for the next 5 years you will probably tell me:
“I don’t know, I didn’t really think about it…”
Yet your future is exactly like going to Paris! If you want to go somewhere you’d better be precise about it.
So what does it mean in the case of achieving financial independence?
It means that you need to define precisely what financial independence is for you.
To do so here is an exercise:
I want you to take a piece of paper and describe accurately a month when you are financially independent.
You need to picture yourself in that situation as if it was real:
How would it be? Would you be on a beach sipping a cocktail? Would you travel? Would you spend some quality time with your family, friends? Would you have a sport car? A big house? It can be anything you want.
You’ll see that’s a pretty funny exercise to do.
Now that you know exactly what you financial independence looks like for a typical month, you need to evaluate the cost of it. That will allow you to know what you need to earn every month to live the life you want. It looks like this:
Buy a house
Buy a Mercedes
|Total income needed to be financially independent||= $29,500|
You now have a clear picture of what’s required to be financially independent.
You also need to define your time frame. How long would it take to reach that goal? How old would you be when being financially independent?
Now you should have a clear picture of your goal, you know:
- What it looks like
- What it costs you
- When you want to reach it
If you did that exercise I want to congratulate you. You are part of the 10% of the people who take their future seriously and who are committed to their goal.
I know that many of you won’t make that exercise because you think there is no point of doing it. You believe that this is only a dream written on a paper and nothing more. I partly agree with you.
If you do that exercise and don’t take action and don’t follow through you are only a big dreamer.
If you do that exercise and do whatever you can to reach the goal you wrote on that “stupid” piece of paper you will probably succeed.
Do you want a proof of that?
Here are some successful people who write/wrote down their goals and always carry/carried them in their pocket:
Defining precisely what’s being financially independent for you and writing it down is the first step to reach your goal.
The second step is to educate yourself on the multiple strategies to use to get there. The Becomer is here to provide you with that so stay tune!