Developing financial life goals and understanding how money works is essential to living your life of WOW. While money is not everything, and being obsessed about money is bad, most people agree that having enough financial wealth to live a comfortable lifestyle is important. Depending upon the type of goals you set for yourself, considerable financial net worth may be required. To travel the world, you'll need the financial resources to do so.
The purpose of this goal category is to help you understand the need to learn about money, and to track it, and do things to increase your income and the growth of your asset base, so that you do have the financial resources to live the life you dream of.
The following 10 financial life goals are designed to do just that.
The key to achieving good financial success is setting financial life goals. At age 30 and as part of my original 100 goals, I wrote out 4 specific financial goals to live my life by . . .
There are literally hundreds of strategies for developing significant financial wealth. They all start with a foundation of understanding money.
Don't make the mistake of being careless with your money and your home finances. The benefit of being wise with your money and developing good financial habits now (see below) are critical to your future.
As many of these 100 Life Goals require money to achieve, setting up sound money strategies early in life are important. Once you understand the power of Compound Interest (reference Goal 41 - Learn personal finance 101), you will look at money entirely differently. Every dollar you save and invest now will multiply many times over if you have decades remaining in your life. Think about that the next time you visit your local Starbucks or McDonalds.
If you don't yet understand the Rule of 72, learn it now. So many people have not heard of this very important rule and once you learn it, it will change the way you think about money. It will certainly factor prominently in the way you think about your long-term financial goals.
The difference between earning varying rates of return (i.e. 3%, 5%, 7%, 10%, 15% etc.) is easily determined by dividing the rate of return into the number 72. The answer will reveal to you how long it will take for your money to double, in years.
Through the principles taught at the 100 Goals Club, it is possible achieve a rate of return between 10 and 20% per annum, as my family has been able to achieve.
Throughout your life, this simple rule will give you an important insight into how much money you will develop throughout your life. It changed my view on how to look at different investment returns and helps me decide how much risk I am willing to take.
It is important that you learn as much as you can about personal finance, and develop, early on, good financial habits that will last throughout your life time. Examples of good financial habits include . . .
There are thousands of good books, blogs and websites about developing your financial habits. The important thing is that you take a serious view of your financial future and develop solid life goals for you and your family.
Keep reading this site on Financial Goals to developing a better understanding now.