I personally use goals to be more focused and to take action. This article can help you in setting goals and to reach out to your vision and make it happen!
Earlier I wrote about 7 essential mindset changes to become financially independent and about my own vision for my life. I strongly recommend that you read it first. Without a vision, you actually won’t set goals properly.
Let’s go for it 🙂
Table of contents
Why is it important to set goals?
Setting goals helps you to design and adjust your life.
First of all, changes will keep coming because life is a process and never static. Our financial situation can vary widely depending on what choices we have taken and what our lives have brought us.
Relationships can go up and down and divorce can have high costs. Our body can be sick and you may need expensive treatment to get well. We need to have life goals inspiration to make a positive change.
Everything life brings will keep changing and your goals will inspire you to take charge of these changes.
It’s important because it will give you more power in the direction of your life.
Different kinds of inspiring life goals
To become financially independent and reach financial freedom in the future you must be intentionally and committed. That means in every part of your life you must consider how it will bring you closer to your vision.
When you are setting goals for yourself then you need to look at the whole picture.
You must consider what can make the biggest difference in your life. Let them work together in the direction you wish.
The wheel of life
There is a tool from Buddhism for a personal development called “The wheel of life”.
It helps you to reflect on different areas of your life.
Using it you will be able to set better goals to balance your life.
I made my own version to become financially independent and you can get a free tool template 🙂
You can download it here:
The wheel of the financially independent tool will cover the very important question:
What you have been
prioritizing so far?
Here are my wheels since 2018:
The rate goes from 1 – 10 and it needs to be balanced around the center.
The more you have of something the higher rates you give it. In my wheel, you can see that there are imbalances but I improved from 2018 till 2020.
I’m going to improve the physical environment and family.
Let’s have a look at every area in the wheel:
- Do you have an income that is sufficient enough to cover expenses, have a high savings rate while investing and follow the 7 steps to financial freedom plan?
Yes, my income is great. It’s growing.
- Will it be beneficial for your overall life to increase your income?
I still work on increasing my income because I think there are much more potentials.
- Do you have a sufficient saving rate each month?
Yes – I managed to increase it from 40%. At the moment it’s around 50-60%. My current goal is to reach 70%!
- Do you have investments and have you studied investment?
Yes and yes I’ve done a lot of research.
- How are your investments doing?
It’s going good with positive returns.
- How frugally do you feel?
I’m a lot more frugal than before. I feel that I’m frugal and clever with my money.
- Are there areas where you can be more frugal?
Yes. I still need to learn more.
- How is your health?
It’s going great. I have improved a lot.
- What do you do to keep you healthy?
I’m a vegan and do exercise 2-3 times a week.
- Do you feel comfortable at home and at work?
- How are you doing during the day?
I have some pressure on me from work but it’s going much better now. Your mindset and rest are really important.
- How is the area in which you live?
It’s all good for now. However, I would love to have a garden. I think we will move in a few years but nothing is planned.
- Do you study important knowledge every day?
Yes, every day. This habit never stops! 🙂
- Do you take notes in a journal?
- Do you add new things you discover to your life?
Yes very often. I’m always looking for new things to try.
- Are you motivated and are you setting goals?
Yes indeed. Still going strong!
- Is your family also included?
My wife could be a lot more into it. She learns about it slowly.
- Is your family supportive?
- Are your ambitions being held back?
I hope it gave you “life goals inspiration” … Now let’s look into how you should do this:
How to set life goals for yourself
When making your own wheel, remember to be honest with yourself so that you can set the right goals afterward.
This tool is for you and no one else.
Score 8 to 10 is awesome however it’s important that you don’t set a limit for yourself for even further growth. Next time you do the evaluation you may look different on it if your potentials are even bigger.
Score 5 to 7 is satisfying but there are still potentials for more.
Score 0 to 4 is inadequate and you need to work on these areas to fulfill the wheel. These areas have the most room to grow and your goals should cover these areas. It’s not always a bad thing to have a low score and it might be because you didn’t fully explore your opportunities and potentials.
💡 Download it and make your own financially independent wheel 😉
My personal goals
I have divided my goals into 3 future periods that are related.
The short-term goals are in the following 2 years and they lead to the next 2 years called the mid-term goals. They are most in my focus.
My Mid-term goals will replace my current short-term goals when they are reached and I will make new mid-term goals.
Finally, my long-term goals include my vision and are in approx 8 years and they are a bit harder to measure in time.
- Pay off my car loan
This loan is just established in February 2020 and will not raise any score after it’s paid off.
- Be able to save 60-70% or more of my income (including additional debt payment)
When I reach this the area “Saving rate” will raise +1 in the score.
- Pay extra on the mortgage, so it will be paid off within 5-7 years
When I reach this the area “Physical environment” and “Savings rate” will raise +1 in the score.
- Have 15% in index funds for better diversification
This will give me +0.5 in score in the area “Investment”
- Have a 20% growth in my income streams
When I reach this the “income” will raise +1 in the score
- Meditate before work every day
This will give me +1 score in “Physical environment” if it makes a change for me in the next year
- Make family goals and work together on them
This will give me +1 score in “family”.
I have prioritized “Family” a low because I can’t focus equally on every area at the same time.
Once these goals are achieved, I will again evaluate and make a new wheel to progress even further.
My mid-term goals (2022-2025):
- Pay off the mortgage before 2025 (Be debt free)
- Be able to save 70% or more of my income (including additional debt payment)
- Have 40% in index funds for better diversification
My long-term goals (2027):
- Become 100% financially independent 😍
💡 Set your own goals. Start with the long-term goals, then mid-term goals and finally short-term goals.
When you’re setting goals remember they must be measurable, reasonable, rational and compatible with your vision.
Also, adjust and evaluate your goals sometimes depending on what matters to you.
Working on your short-term goals every day
Long-term goals and even mid-term goals may seem unmanageable and overwhelming.
It is very important that you focus more on your short-term goals as they are closer to your current reality.
The task is smaller and it also gives greater motivation to have a goal that is within reach.
Remember to have goals that are connected and directed towards your vision of being financially free.
Every morning I actually make a small list of small daily goals that I want to achieve.
I write them down on a small paper and have them with me during the day. This brings me closer and closer to my goals.
Unfortunately, sometimes I don’t achieve my daily goals but I still had the focus on what’s important to me. I try again the following day.
💡 Write daily goals for yourself but be realistic and do your very best to prioritize them
The effect on your belief system
You must be aware of your goals in your daily life and make an effort to reach them.
Beliefs arise from experience and your thought patterns will start to change when you work on your goals daily.
It won’t happen overnight because everybody has a belief system that they utilize and it is through this mechanism that we individually “make sense” of the world around us.
You certainly need to be consistent and in time positive response patterns will be a part of your unconscious mind.
The unconscious mind handles all functions in your body and is programmable. You can by repetition program your mind to react different (think different) without you even notice it.
Many are absorbed by entertainment programs, computer games, and other consumer products.
Your priorities will determine the direction your life takes and how you think about yourself and your life.
I strongly recommend that you reach out for your daily goals and spend your time wisely and always positive.
Your conscious mind must be at work with the goals daily.
It’s actually only 12% of your brain (the tip of the iceberg) and it has no long-term memory.
That means you need to work on yourself every day to trigger new positive habits in the unconscious mind.
In the blog post, about 7 essential mindset changes to become financially independent I wrote about how you can feed your brain daily.
It basically works in the same direction as goal setting. Together it will work on different levels to make you positively progress and become financially independent.
When you start breaking down any doubts about yourself and create stronger thoughts everything will start to change.
Your brain will be rewired by this repetition and you will become a better version of yourself.
That’s it. I am writing continuously while I’m through the process myself. I therefore only write what has worked for me. I hope you liked this blog post about “life goals inspiration”.
The next blog post is about earned more or spend less.