Currently, I am reading this new book by Robert Kiyosaki ‘Retire Young, Retire Rich’ and in this book, he gives a lot of importance to the ‘Why’. One of the questions involves finding out why do we want to be financially free. He says that ‘how’ is less important than the ‘why’.
The ‘why’ is the most important aspect of everything that we want to achieve in this life from financial freedom to saving money.
So, if you are thinking about saving money, find out the ‘why’. That will help to put everything into perspective.
If you are not able to find out the ‘whys’, here is a list of financial goals that can help to figure out your goals.
- Retirement or early retirement
- Starting your own business
- Down payment for a flat or plot of land to earn rental income
- Travelling goals
- Buying your dream house
- Buying your dream car or bike
- Funding your marriage or your children’s marriage
- Children’s goals
Now, if the list has helped to jog your memory, write down your financial goals. These are the goals that require to save money.
As a fan of Warren Buffet, let’s apply his technique and put a number on the goals on the basis of priority in ascending order. Number 1 should be the highest priority goal.
Now, strike all the financial goals after goal number five.
Here’s the list of financial goals that you can start working on. While it is a very simple, it will at least help you to figure out your priorities. Knowing your goals is important as that will aid in investing in the right options.
You don’t have to worry if buying bike figures in the top five. Don’t let anyone tell you otherwise.
Also, financial goals are not likely to remain the same. Hence, you have to keep updating it on a regular basis. For e.g., travelling was a big goal for me just three years ago and currently, it is investing for retirement.
You don’t have to feel shy or feel old if your goal has changed. It is part and parcel of life. People change and so does our dreams. There is no harm in saving money for your entrepreneurial dream if your friends are saving for a world tour. The main question is ‘Are you happy?’
Now that calls for another post.