As previously discussed I am going to document my process for achieving success in life and business. I am going to try different things along the way and some will work while others won’t. I will tell you about both! I am trying to help people so to me, it is important to detail not only what does work but what doesn’t.
I would like to achieve the lifestyle that many dream of! to me that is the ability to work from home,I(not all the time but when I choose to). I would like to have security both in my financial status and also in terms of the property that I own.
I want something that I can leave for my children, a business, portfolio what ever I happen to achieve so they can continue to run with it and hopefully give themselves the best chance at life.
I would like to retire by the time I am fifty! not just sit back and scrap by, I want to stop needing to work and start living life to the full. I know already that I intend for my retirement to be expensive and to that end I know that I am going to need a lot of income to achieve that.
What am I going to need?I
OK, so I have given this subject a lot of thought. I have an idea of what I want in my head, but where to now? What do I need and what do I need to do to even start the process?
I could get over-run with the size of the goal that I want to achieve (Let’s be fair, its massive). I could sit back and tell the world that I will retire by the time I am fifty and hope something turns up. Maybe goals is exactly what I am going to need to start this process.
If I look at the shear requests I am making of myself and as a ball park figure Let’s say that I want to achieve an income of £100,000 a year for every year that I am retired! I feel this should give me and my wife a substantial life style that we can enjoy, but hold on £100,000 a year for ten years means I need 1 million in my bank account at the age of fifty. What if I live for twenty years or even thirty years?
Now once again I am starting to panic, how am I going to get 3-4 million pounds in my bank account by the time I am fifty?
OK Let’s work backwards!I
If I said that I wanted to achieve an income of £100,000 a year for every year that I am retired, how can I achieve this. I think obtaining 4 million pound and having that sit in my bank account is possibly a bit unrealistic for me in my current situation. Can I change my situation so that it is not unrealistic, yes I think I can but I haven’t a plan for how to do this yet so Let’s keep that idea on a back burner.
OK other options for achieving this. If I looked at the interest that substantial amounts of money will generate can I achieve my £100,000 another way. If I could get to 3 million in the bank and find a bank that was going to give me 3.25% interest then I could get very close to £100,000 per a year.
This gives me another idea though. Most property that people rent look for somewhere between 5-7% returns if you are good you can achieve more than that but Let’s start here. So now if we can achieve a property portfolio value of 2 million even if we are only earning 5% then we will achieve our £100,000 a year. The beuty with property is that not only can you achieve regular monthly payments from these assets, in most circumstances the assets themselves appreciate in value as time goes on.
Why is goal setting important in life?I
So now we have worked backwards we have taken our goal from achieving 4 million in the bank, which will dwindle down over the years, down to achieving a minimum of 2 million pounds in property. I have already saved everyone reading this 2 million pounds, and I haven’t even charged you for it!
So why is goal setting important in life? I can sit here and tell you all that I am going to achieve 2 million pounds in property and that will see me be financially stable in my retirement. How exactly am I going to get from here to there?
I can also set myself the goal of getting 2 million in property. Does that make it anymore achievable?
I need a plan. I need a definite starting point and while I don’t need the full step by step process at thew moment I need to have a way of getting the journey started and a way to ensure that I am working towards my main goal, which is now to have 2 million pounds in property by the time I am fifty.
If I set out the full plan of achieving my goal now, firstly it would probably take me all year to plan it and secondly I may well have to scrap part if not all of it in the future because something didn’t quite go to plan. My point here is that a goal is not a plan, the goal is what you want to achieve I may achieve it one way you may achieve a very similar goal in a completely different way.
The first part of this process is to take my next steps. My initial goals for this year and how that relates to my main goal. I can then work out from my yearly goals what I need to do from there.
OK I am getting excited. Lets just stand back and admire, I have just created my main goal!
Achieve 2 million pounds worth of property in my name by the time I am fifty.
That is pretty awesome. Why don’t you guys tell me yours, every ones will be different.