Before you start on a journey, you need to know the destination. At least the general direction. Similarly, the first step (ok, maybe after understanding your relationship with money as http://www.themoneyhans.com/plan/
When planning your holiday, you may look at pictures of possible destinations. When planning your home renovation, you may put together a mood or colour board. When planning your wedding, you may put together a ‘look board’ …if you’re a woman. Similarly, when planning your finances, you may want to put together a goals…or dreams board. I like using physical props, so that’s what I have done in this video.
The video is self-explanatory, but I will write this out here as well.
The important take-aways from this are –
- Listing all your goals and grouping them into needs, wants and desires
- Estimating the monthly or annual cost for each goal at current rates
- Applying a rule of thumb calculation to arrive at the amounts you would need to be well invested to pay for your goals – if you want to stop earning from your job/business