Having a plan of action is necessary for making money. Understanding how to set money objectives is necessary for maintaining money.
Let's face it, One driving element is the fact that thousands of real estate professionals will converge on Success Summit in Dallas the following week. They seek increased financial gain. And because of this, I'll be sharing a few things, like how to set financial objectives.
"I want to make more money" is not a goal; it is a flimsy declaration that will keep your objectives hazy and your financial account on the verge of "safe." Do you prefer "safe" above "comfortable and secure"?
Sad to say, 80% of people will be completely bankrupt when it's time to retire. You don't have to be that. Because of this, I'll give you a taste of the kind of knowledge I'll be presenting at Summit on how to create financial objectives and put procedures in place to attain them in this week's blog.
You are no longer shooting in the dark once you are aware of what you are aiming for. In order to throw some light on your money, let's get started now.
Step 1 Of How To Set Financial Goals: Finding Your Cost Of Living
Even though this one is extremely easy, sadly not many real estate agents spend the time on it.
All you have to do is tally up all the expenses associated with maintaining your lifestyle:
- utilities plus rent or mortgage
- marketing and operating costs
- a car loan
- medicines and food
- amusement and enjoyment
- taxes
- savings
Add up all of your payments and normal costs, then add an extra $1,000 because you never know what can come up in life. It's possible for you to get sick, have a vehicle accident, or spend a little too much on supper.
The aim of your survival is this. It is what you must regularly produce each month in order to stay afloat. You won't live better or be able to retire at any point thanks to it.
Step 2 Of How To Set Financial Goals: Your Good Life + Dream Goals (Phase 1)
Let's advance things a level.
What would your life look like if you were successfully closing more transactions? Think about the house you want to buy after this one. What is the price? What about a more appealing vehicle? How would you like to spend your vacations?
Put yourself in a relaxed state and picture it. then look up the current prices on a computer. Total them. Do everything exactly as you did when determining your survival objective, plus add $3,000 on top.
Your Good Life Goal is this.
Let's go one step further now. What would your business look like if everything went flawlessly for you over the course of the upcoming year and money was pouring in? With all of your new lead generation sources, how much would you be spending on marketing? What city would you reside in?
Your dream life has a price tag, so knowing that gives you a dream goal.
Step 3 Of How To Set Financial Goals:: Adapt For The Future
If we could just stop at step 2 and live in dreamland, wouldn't that be wonderful and simple?
Unfortunately, that is how you join the 80% of agents who will continue to work until they pass away.
Find the REAL numbers that will enable you to achieve your goals both today and in the future.
Make a projection of your life for the next ten years, planning to stop working and just live at the end of that time.
All three goals should be written down, multiplied by 12 to make them yearly amounts, then multiplied by 10 to make them last for ten years.
Say your annual Good Life Goal is $125,000. That means you will have earned $1,250,000 over ten years. Let's now begin to trim this.
- 35 percent is taxed.
- 25% to managing your company
- 25% to maintaining your house
- Leaving 15% for investments or savings
According to this, you can now easily continue a similar lifestyle for a remarkable ONE YEAR and some months at the conclusion of TEN years!
Really spooky, huh? You should therefore start considering these issues right now.
You need to choose a 10-year number that seems right to you before this stage is finished. Either you need to start reducing some of your spending or you need to increase your budget altogether.
Step 4 Of How To Set Financial Goals: Research The Methods To Achieve These Amounts
Your updated Good Life and Dream objectives are now in place. It's time to start looking for methods that will enable you to accomplish them. The plays you are now running won't get you there.
Fortunately, you have the chance to learn exactly how to achieve yearly goals that WILL enable you to retire in a pleasant manner.
We're giving away one set of our Ultimate Real Estate Playbooks at this year's special 20th anniversary Success Summit. These case studies represent the precise plays that some of our top coaching clients are employing and which yield significant results. You'll discover:
- Who these people are and what their business approaches are
- How much they earn annually
- Their main conversion tactics and lead-generation pillars
- How to manage your company exactly like theirs, with a detailed explanation of each tactic
Without a financial plan, financial goals cannot be fulfilled; therefore, you have two options: either select our completely formed plan and make whatever changes you desire or devise your own plan.
I'll assist you with creating a SERIOUS strategy during my session at Success Summit, "I Want You to Be Wealthy," if that's what you want.
Step 5 Of How To Set Financial Goals: Decide Your Who And Why
I'm a flawed human being, just like everyone else. And by doing so, I've discovered that I'm able to renege on my commitments to myself. But I've also observed that I never break promises I make to people, especially those who are important to me.
Most people are more likely to work relentlessly for their spouse, children, parents, or coach than they are to work diligently for themselves.
You must take responsibility. I require responsibility. Everyone needs it. It is the basis for greatness. Locate yours. Do not omit this phase.
Step 6 Of How To Set Financial Goals: Decide Where Your Money Will Flow
Your ability to categorize your money has already been discussed. If all of that money is kept in one account, the unseen boxes in your head will eventually vanish into nothing.
Hope you're not depositing your checks into a personal checking account. If that's the case, stop right away, and start a business account. Since I'm not your financial expert, you and they should decide what kind of account to start.
However, as soon as that business account is active, you should begin opening additional accounts and transferring funds into each as necessary as soon as possible:
- tax return
- personal account
- fun story
- savings kitty
- account for investments (avoid the error of not purchasing enough of your own product)
- account for business expenses
Start with these before moving on to the rest. And don't forget to watch this video if you haven't already.
Step 7 Of How To Set Financial Goals: Commit To It
You've made up your mind what you want, honed it, picked a plan to get there, established accountability, and organized your financial affairs.
Now I want you to make a written and verbal commitment to those who are holding you accountable that you will follow this plan and work as hard as you can to accomplish these goals.