by The goal that is so scary it feels intimidating to speak out loud and you aren’t sure if you should even say it
When you read today’s title, what’s the first image that comes to mind? Before you move on, write it down. You may even write it down on a piece of paper and turn the paper over because it’s that scary.
We have spoken in the past about 10 year goals. We would invite you to visit that list and select some if you are having challenges getting started.
Today we want you to face your fears of your #1 goal. Before someone says “I don’t have any fears” please rest assured…you do. We all do. We face them daily. Even ultra successful individuals like Jeff Bezos have fears. His are just different. They aren’t about “how am I going to pay the mortgage” they are about “how am I changing the world”.
Your First #1 Financial Goals (Maybe Call them #1a and #1b)
Before you dive deep into a #1 goal there are two goals we believe should be your immediate #1 goal. While we don’t like setting goals for folks we have seen over time that getting these things squared away first maximizes long term success.
Consider these your first #1 goals while you are working toward your big #1
- Eliminate credit card debt
- Build an emergency fund (1 month to start and then 6-12 months depending on career choice)
- Those who are entrepreneurs or commission based individuals may experience greater swings in income and may need larger reserves. Please look at your past income history or industry averages to come to a number that prevents you from borrowing
The good news is even if you aren’t quite through with the items above you can still identify and work toward your #1 goal. In other words you can make the progress to have the financial life that you dream of.
How to Identify If It Is Your #1 Financial Goal
As we mentioned earlier your #1 financial goal should be a little scary. The goal should be a stretch from where you are at now. It should be something that may even change the outlook of your family for generations to come.
At the same time the goal should also be achievable. We define achievable in that you are willing to put the work in to make it happen. “Realistic” is often thrown around. Let’s face it “realistic” can be limiting and we don’t want anyone to be limited. You should only be limited by the amount of effort you are willing to put into your number one goal.
Examples of #1 Goals and a reason why they could be your #1 are below. Please keep in mind if you have goals that are less or more than the ones below that’s ok. The table below is meant to challenge your thinking.
| Goal | Reason Why it Could be #1 |
|---|---|
| $100,000 in an investment account | You are starting from $0, you don’t know anyone in your immediate circle who has that amount of money, it’s more money than you can imagine at this point in time |
| Owning a Home | Your immediate family, friends, and people you talk to have never owned a home. You want to have a place to call your own. |
| Paying for a Child’s College Education | No one in your family has been to college. You want to change the future for your child so they don’t have debt and can build a future. |
| Having $500,000 in Retirement Savings | Everyone you know lives off of social security or small pensions. $500K sounds crazy to you. It sounds so crazy you aren’t sure about it. |
These are just examples of #1 goals. You could have goals that are bigger or smaller. The key is that it should be a little scary.
Building a Plan to Reach your #1 Financial Goal
We have a 3 step process that we recommend taking in setting long term goals. We encourage you to visit the detail we have provided on the process.
To summarize the 3 steps to long term goal setting there are as follows:
- How many years out is the goal?
- How much do I need to accomplish the goal?
- How much would I need to invest annually for this goal?
What we want to encourage you to do today is to get started. We want you to write down your goal. Own the goal. We want to make sure that this is something you want. Something you are willing to make sacrifices for and commit to the work necessary to reach the goal.
When you are ready and comfortable we invite you to share that goal with us so we can encourage you to reach your goal!
Twins Rules for Financial Success
As with all of our content here we want to encourage you to follow three core rules :
- Have an Emergency Fund/Squirrel Funds
- Invest for the Long Term
- Invest Automatically & Consistently
