Creating Goals from Dreams
By Jenny Brown
“What do you want out of life?”
Do you know the answer?
It’s a simple question and as financial advisers, we often receive a generic response like…”Live comfortably, retire early and help the kids.”
But what does that really mean? What is it to YOU want? Now? In 2 months? In the future?
It’s expected that you’ll live comfortably as we will always live (generally) slightly beyond our means. Retiring early is a rarity – no matter what you hear, most people retire later in life for a number of reasons. Many people delay retiring because they are concerned about not having enough funds in retirement and they don’t have a life plan to keep themselves occupied. More and more parents are looking to ‘help their kids’ whether it’s to buy their first home or assist in their education; there is increasing pressure to assist their children. These dreams are not unique and often take care of themselves as life and times progress. If we were to take these things away, what would be left?
So, consider your answer again, what do you want from life?
When meeting with new clients for the first time, we find people don’t often stop and take the time to think about what they actually want.
When school starts at the tender age of 5, we go to school, then it’s expected that you will either undertake additional education or embark on your career. From there we begin to pursue our dreams, from buying a house, taking a special holiday, purchasing or upgrading a car, starting a family and everything that goes with that stage of life. As your family grows and moves on your focus becomes saving for the life you want to live, then retire and enjoy it. But wait, did you stop along the way and sit and identify what your own goals are?
Sometimes we travel through life accepting that next job offer, promotion or pay-rise, only to wake up one day and realise we would be happier in a different career or role. Or perhaps you aren’t following the path in life you had imagined.
The key here is prioritising your dreams. Dreams are hopes of your life, whereas goals are things that you are striving for by taking measured and intentional steps. So the first step is to write down your dreams, eliminate the ridiculous ones, and rub out those that maybe aren’t as important. What you are left with are the dreams in between that are important to you and doable.
Write your goals down by following these simple steps:
- WHAT – detailed description of what it is you want to achieve. Be specific so that you can measure it and see your progress.
- WHEN – you need a due date. This prioritises it and gives it life. It changes a dream to a goal by knowing when this is to be achieved.
- HOW MUCH – You need to address the financial side of the goal by understanding the costs involves. This could be the cost to buy something or the loss of income from not being able to work for a period of time, like when you’re on holiday. Be as accurate as possible and even include a buffer to ensure your goal is attainable.
By following these steps you should have a list of goals that are achievable and can be ticked off when you achieve them. You’ve turned your dreams into a goal! Here’s an example:
I want to buy a new BMW by the end of December 2022 for $85,000
Rather than…I want to buy a new car soon!
A goal is achievable and the other is simply a dream which you hope to achieve.
Now is the time to stop and take the time to think about what you value in your life. What means the most to you? What are your dreams? Then write them down in a structured manner so you can turn your dreams into goals and let’s work on getting them done together.
When you meet with a financial planner you have taken the first step towards defining what you want for yourself today and into the future. By building a relationship with your financial adviser, they can ensure you stay on track and keep you accountable for working towards your goals.
Reach out to the JBS Financial team here and start creating a plan to achieve your goals for today and into the future.