There’s no doubt that money is important. But what is your vision of financial freedom? Stacy Johnson, author of Life or Debt 2010 highlights why setting goals for a bigger life picture is so important.
Hey, let’s go for a ride! Where do you want to go? Nowhere? Okay, we’ll just drive around aimlessly and hope we accidentally end up somewhere interesting. Hop in! That’s the way most people plan their lives, financial or otherwise. They may have a vague idea of where they want to end up, but they’re not really sure in which direction to start or how long the trip will take. Then they spend the rest of their lives zigging, zagging, asking directions, and wondering, “Are we there yet?”
If you feel like you’re not getting where you want to go, this could be one reason why. Because if you don’t know what your specific goals are, you’re not likely to achieve them. If you want something from life, no matter what it is, the fastest way of getting it is to make it a goal.A goal is a destination. You create it by describing where you intend to go as specifically as possible, visualizing it, then defining the exact steps required to achieve it. Next you divide those steps into manageable tasks and assign a completion date for each one. You get everyone who’s going with you on this journey onboard. Then together you follow through until you arrive. If you don’t accomplish each and every one of these steps, you’ll either never get what you want, or you’ll take longer than necessary to do it. These steps are the road map that represents the shortest path from where you are now to your ideal destination. And a map is the only thing that keeps you from driving around in circles.
Here’s the condensed version.
Goal Setting
- Name your destination: What’s your goal?
- Visualize it: What exactly does it look like?
- List the steps to achieving it: What specifically will you have to do by when?
- Get everyone else on the bus.
- Follow through.
Most people never set goals for themselves. They don’t think about what they really want, much less do anything to make it happen. Oh, sure, when pressed most of us will spit out some canned answer to the question of what we want. “I want to be rich!” “I want to go fishing every day!” “I wanna be a rock star!” But that’s about as far as it goes. Why don’t we have goals? Because dreams are much easier to maintain and a lot less risky. A dream is something you want. By definition you can’t fail at achieving a dream, because you never said you’d actually get there, just that it would be nice. A goal, on the other hand, is something that you’ve said both on paper and out loud that you’re actually intending to do. That means if you don’t get there, you fail. And failure means looking bad to yourself and others. Bottom line? Most people don’t have goals because they’re chicken. They’re afraid of failure. The way to overcome that fear is to realize that failing to try is a lot worse than trying and failing. Nothing of any significance in life is ever accomplished without some failure along the way. Don’t ever be afraid of failing to achieve a goal. Be afraid of failing to try.
Happily, however, you’re no chicken. The fact that you’re reading this sentence right now is proof positive that at this moment in your life, you’re ready to try. You’re ready to set goals. So let’s get to it!
While you can use the above steps to achieve any personal or financial goal in your life, from losing weight to becoming a rock star, let’s try the goal that brought us together here: achieving freedom in your life.
There’s step one: naming our goal. Step two is to visualize it. So, describe to yourself, first by thinking about it, then by writing it down, exactly what freedom means to you. If money is all you care about, it could simply be a specific dollar amount. But words like “freedom” might also involve things other than money, like how it feels to be free. In other words, does freedom mean being famous, a billion dollars in the bank, adoring fans, and a 400-foot yacht? Or does it instead conjure images of writing a novel in a small cottage on Cape Cod? My personal vision of freedom is more toward the latter than the former. And not because it’s easier to achieve. When I thought it through, I realized that while I wouldn’t turn down a billion dollars, life has taught me that the super-rich aren’t all super-happy. Imagine what it’s like to never know who your real friends are: that will be your fate if you have a 400-foot yacht. Trust me on this. And as for the super-famous? Imagine not being able to pop into the local pub without being mobbed by autograph seekers and paparazzi. That’s life for them. Great dream, perhaps, and I’m certainly guilty of dreaming it. But as far as I’m concerned, crummy goal. And if you don’t agree, check with Elvis, Marilyn Monroe, or Michael Jackson. Oh, that’s right, you can’t.
A better version of financial freedom — at least for me — is to spend my life doing what I want to do instead of working for someone else doing what they tell me to do. And what I’m doing as I write this is exactly what I want to do. I can’t adequately describe the fulfillment I get from helping people achieve what they want out of life by providing guidance on TV, in speeches, one-on-one, and in books. It’s not just what I do — it’s who I am. I believe it’s the reason I’m on this planet. And since I get paid to do these things and can continue doing them for as long as I can see, speak, or write, I really don’t need to be able to live off the interest from my savings to feel free. As far as possessions go, I don’t need a mega-yacht or a mansion to feel good about myself. I don’t need people asking me for autographs. My vision of freedom is to do what I love, get paid adequately to do it, and have enough money set aside to stop doing it for a while if the mood strikes — enough to support my current lifestyle for several years without bringing in any money. Not owing anybody anything. Calling my own shots. That’s what I call freedom. While it involves money, money’s not the only goal. Freedom is about doing what makes me feel fulfilled and having enough in savings to do it for as long as I’d like to…but never because I have to. And I’m pretty much there. But not by accident: I actually wrote this goal down on a piece of paper in 1995. While where I sit today isn’t exactly what I described back then (I had no idea back then I’d be living in Florida, for instance), it’s close enough.
What about you? What’s your vision of freedom?
ABOUT THE AUTHOR
Stacy W. Johnson, author of Life or Debt 2010: A New Path to Financial Freedom (Copyright © 2009 by Stacy Johnson), is a CPA and former stockbroker who for nearly 20 years has been the producer and host of the popular syndicated personal finance new series Money Talks. He is the recipient of multiple Emmy awards. Check out his website at moneytalksnews.com.
MORE ARTICLES BY THE AUTHOR
- 3 Ways to Reclaim Your Wallet and Start Saving
- 33 No-Nonsense Ways to Save Money by Saving Energy
- How Much Did Your Stuff Really Cost You? An Eye-Opening 7-Step Exercise
LEARN MORE
- Read Chapter 1 of Life or Debt 2010: A New Path to Financial Freedom
- Watch the video: The author on his program for helping you get out of debt and achieve financial freedom
