How To Set Financial Goals

Know how much your dream lifestyle would cost then reverse engineer!

 min read

I’m sure you have heard all over the place how important goal setting is to achieve your goals. 

One thing that you have to note right now is that a goal, without a plan of action, is just a dream. So we’ve been told that we need to set goals...but how do we really know what our goals are and how do we place a monetary figure on those goals? 

If you follow this exercise with intent, I will guide you into setting your ultimate goal of how you want to live your life. We will reverse-engineer your goals to figure out exactly how much you need to be earning each month in order to support your ideal lifestyle.

Now, sit back, close your eyes and do the following:

Imagine your perfect life. Imagine what your dream car will look like, imagine your dream house, your dream wife, the perfect lifestyle that you want to live. For some that might include a Lamborghini, a personal chef, a $20million dollar mansion to live in, whatever it might be, envision your version of your perfect life.

Now snap out of it and open those eyes! Now comes the task of placing a monetary value on each of those aspects that dictates your “perfect life”

Break it down on a piece of paper:

  1. Lamborghini = $4,000/month
  2. Private Chef = $3,000/month
  3. Dream house = $20,000/month
  4. Entertainment = $5,000/month

Add all those values up e.g. $32,000/month will be my monthly expenses to live my version of a perfect life. Now double it, and that is what you should be earning every single month. Do not stop until you have achieved it!