Add to your collection of answers:
Ralph Marston (author of The Daily Motivator) once said, “There is a thought in your mind right now. The longer you hold on to it, the more you dwell upon it, the more life you give to that thought. Give it enough life, and it will become real. So make sure the thought is indeed a great one.”
Now that you have completed your Vision Quadrant (see the course Financial Planning: A New Fiscal Beginning), and have made the commitment to be wealthy, it is time to visualize your desires, create a set of concrete goals, map your future, and create a Financial Vision Statement. These should guide you on your path towards financial freedom.
Every success is created in the mind before it is achieved. Architects visualize a completed structure in their mind’s eye before they begin to draft a project. Olympic champions visualize themselves atop the podium as a part of their training. Oscar-winning actors rehearse their acceptance speeches in anticipation of receiving the award. A common adage states, “If you can see it, you can achieve it.” The seed of all action is thought, and nothing is carried out before it is visualized.
Motivation
The importance of the Vision Quadrant was to help you brainstorm and list some of those things that are important wants and desires in your life. To motivate you to achieve, you need to attach feelings and emotions to your wants. You need to build and maintain motivation. Three key components of motivation are enthusiasm, self-discipline, and effective time management.
Enthusiasm
Noted author Ralph Waldo Emerson once said, “Nothing great was ever achieved without enthusiasm.” Review the list in your Vision Quadrant under What I Want. How badly do you really want these things? How driven are you to achieve them? Where does your enthusiasm lie? Enthusiasm is often passionate interest in or an eagerness to do something. How badly do you truly desire your wants? Answer these questions frankly, and you will have set an enthusiastic foundation for your goals and visions.
Self-Discipline
Self-discipline is the ability to take action regardless of your emotional state. According to Steve Pavlina, a popular personal-development guru, there are five pillars of self-discipline:
If you can learn and sustain self-discipline, you are adding a hardening agent to your foundation. You are almost ready to start building your goals and visions.
The final component to maintaining motivation is effective time management. Benjamin Franklin once said, “Dost thou love life? Then do not squander time; for that’s the stuff life is made of.”
There is nothing more frustrating than beginning a day with an extensive list of tasks and finding most of them unfinished by the end of the day. Motivation fades as self-doubt creeps in and excuses mount. As you cannot add hours to a day, the best you can do is to make effective use of the time that you have. In other words, you need to manage your time more effectively.
There are three “P”s to effective time-management:
In a nutshell, plan and prioritize your tasks, and realize that completing tasks on time does not mean they always have to be perfect! However, this does not grant you license NOT to put forth your best effort. Moreover, do not beat yourself up for not having accomplished everything! It is best to schedule your days with prioritized tasks and to tackle the most important ones first.
Now that you have the key components of motivation, and your wants are defined, it is time to map your future. We accomplish this by creating a Personal Vision-Mapping Notebook. The steps for creating the notebook are outlined below:
1. Procure a three-ring binder (with dividers).
2. Make a list of all areas of your life that are important to you. These should include areas that you want to develop and create goals for. These are the areas of your life that you want to continue to develop and improve for the rest of your life. Include sections for finance, relationships, hobbies, talents, education, spiritual pursuits, physical objectives, etc. (Label each divider with each aspect that you choose.)
3. Create a vision statement for each section. (The instructions for creating a financial vision statement are discussed later in this course, but the instructions may also be used for creating a vision statement for all aspects of your life.)
4. Create goals that will help you achieve your visions. (The steps for creating personal goals are discussed in the next section.)
5. Each goal can then be broken down into the intermediate and short-term steps required to achieve the goal.
6. When needed, the steps can be further broken down into short-term tasks.
The secret to successful vision mapping is to WORK BACKWARDS. Once you have established and can visualize your long-term goals, divide them into short-term goals that will move you closer to your vision. Each goal should then be assigned multiple tasks that will complete the goal over time. Realistic time frames should be assigned for each task.
In addition, your notebook should be a work in progress. It should be reviewed, updated, and enhanced regularly.
A goal may be defined as the end towards which effort is directed. Goal setting is a formal, yet simple process for personal planning. By setting goals on a routine basis, YOU decide what it is that you want to achieve. The process of setting goals allows you to choose the end towards which YOUR effort will be directed. In other words, by knowing precisely what it is you want, you will have a focal point towards which to aim your efforts.
In Lewis Carroll’s Alice in Wonderland, Alice met a Cheshire Cat. She asked the cat which way she should go. The cat responded by asking her where it is that she wanted to get to. She replied that she did not care where she went. The cat then stated, “Then it doesn’t matter which way you go.” When setting goals and creating a plan for your finances, you should consider the wise words of the Cheshire Cat. If YOU do not know where you want to go, then it really does not matter which way you go!
Goal setting is a standard technique used by top athletes, successful business people, and high achievers in all fields. It is a formal process that involves deciding what you want to achieve then moving progressively towards accomplishing it. The practice of goal setting begins by determining what it is you want to do—what large-scale goals do you hope to achieve. Next, you separate these large goals into smaller, more manageable target goals. Finally, once you have your plan, start working towards achieving it.
The process of setting goals also allows you long-term vision and short-term motivation. Furthermore, knowing precisely what it is you want to achieve allows you to identify and ignore distractions.
By setting clearly defined goals, you can visibly measure the steps you take towards achieving those goals. You can see your progress in what could otherwise feel like a long, pointless chore. Setting goals can also raise your self-confidence. As you recognize and take pride in your ability to achieve them, you will then be able to extend your competence by achieving increasingly more difficult goals.
One common method of goal setting, as developed by the Project Management Institute, and distributed by Project Smart, is the SMART method. The acronym SMART has a number of slightly different variations (several of which are listed below). Use them when you set your goals. They will help you to set goals that you can achieve, instead of dream about.
S specific, significant, stretching (well-defined and clear)
M measurable, meaningful, motivational (obtainable within a specific period)
A attainable, achievable, action-oriented
R realistic, relevant, reasonable, rewarding, results-oriented
T time-based, timely, tangible, trackable
One of the first things you should do when establishing your finances is to set both long and short-term goals. Your long-term goals should be what you want to ultimately accomplish. For example, you may want to be debt-free, have a specific amount of assets, or be financially independent. Your short-term goals should be stepping-stones towards your long-term goals; they should be attainable and should force you to step out of your comfort zone. You may want to start by setting goals for a full 30-day period, and then each day set daily goals that will help you accomplish your 30-day goals. Short-term goals could include such objectives as identifying the debt that you want to pay off, the savings you wish to create, the investments that you desire to advance, or the financial education you want to attain.
So how do you begin to set financial goals? The first step is to take inventory of your current financial situation. Ask yourself such questions as the following:
Financially, where am I now?
How did I get into this situation?
What do I need to do to improve my situation?
The answers to such questions will help you to create goals that you want to achieve. The next step is to create goals that answer your questions. You want to create goals that take your finances to a higher level. There is no set, particular way that you should create your goals, just remember to be SMART and include the suggestions in the following section.
Suggestions
Once you have decided on your first set of short-term goals, keep the process going by reviewing and updating your to-do list on a daily basis. Also, periodically review your long-term goals so that you can modify them to reflect your changing priorities and experiences. The following broad guidelines will help you set effective goals.
Write Your Goals Down
Write them down and be as precise as possible. Writing goals down will solidify them and consequently give them more force. Include specific dates, times, and amounts so that you can clearly and accurately measure your achievement.
Be Positive
Express each goal as a positive statement so that you can maintain positive motivation and momentum.
Set Priorities
When you have several goals, rank them in order of priority. This will help you avoid feelings of being overwhelmed, and it will help you focus your attention on your most important goals.
Set Realistic Goals
Keep operational goals small and achievable. If a goal is too large, it can feel as though you are not making progress towards achieving it. It may always feel just out of reach. Furthermore, you may not appreciate the obstacles that may prevent you from achieving an abnormally high level of performance. On the other hand, do not succumb to fear or laziness by setting your goals too low. In short, set goals that are slightly out of your immediate grasp but not so far that there is no hope of achieving them.
Set Performance-Oriented Goals
Set performance-oriented goals rather than outcome-oriented goals. Set goals over which you have as much power as possible. This will keep you from failing for reasons beyond your control. For example, if you base your goals strictly on personal performance, you can maintain control over their achievement and draw satisfaction from them.
Keep Operational Goals Small
Keeping goals small and incremental grants you more opportunities for reward. Derive today’s goals from larger, long-term ones.
Enjoy Your Goals
When you achieve a goal, take the time to enjoy the satisfaction of that accomplishment. Absorb the implications of the goal achievement, and observe the progress you have made towards larger goals. Upon achieving a goal, take the time to review the remainder of your goals and use the following criteria:
If you fail to meet a goal, try not to be discouraged. Instead, do your best to learn from your mistakes and apply what you have learned to improve your goal-setting program. Remember, your goals should change as you mature—let them. And if a goal is not attractive to you anymore, let it go. Goal setting should be your servant, not your master. If handled properly, it can bring you satisfaction and a sense of achievement.
In a famous speech by Martin Luther King, Jr., he stated, “I have a dream!” He then proceeded to elaborate on his dream for the future of America. His speech became one of the most renowned vision statements of his time. Vision statements are used by corporations, politicians, athletes, and just about anyone who wants to create a vision for their future. A vision statement is a larger-than-life document that is meant to inspire motivate and provide a focal point for the years to come.
Your life is multi-dimensional. Every choice you make creates a consequence and has an effect. Each aspect of your life deserves some focus when drafting your personal vision statement: financial, familial, spiritual, physical, vocational, social, mental, and recreational. Each carries equal weight and importance. When one of these aspects is out of kilter, then your whole life balance and personal symmetry may be thrown off as well. With a vision statement, you can map out each facet of your life and incorporate goals, desires, dreams, and even wishes. There is an axiom that states, “If you can believe it, you can achieve it.” Success, by definition, can only be achieved by accomplishing one’s goals. Therefore, a written vision encompassing those goals can be used as a yardstick to measure one’s achievements. Only you can envision your future. For example, once you are in a position where work is optional and recreation is truly affordable, what will you do with your time? What income and assets will be required for you to become financially independent? What effort will you put forth to make the world better than you found it? In essence, how are you going to achieve financial freedom?
Writing a personal vision statement is an important step in focusing your life through your personal accomplishments, your emotional well-being, your values, your contributions, and your legacy. Your vision statement is meant to be the articulation of your dreams, values, and hopes. You may create a vision statement for any aspect of your life, but for this course, you might want to focus your statement on your financial future.
Use the following questions to guide your thoughts and to help you brainstorm ideas for your personal financial vision statement.
If you want to change your patterns, craft your dreams, and turn them into realities, then you must first motivate your heart. You must change your core beliefs about what you can and cannot accomplish. You must break old habits and patterns and establish new ones. The process of creating a personal financial vision statement affords you the opportunity to reevaluate embedded beliefs. It allows you the chance to step out of your comfort zone and create a new life for yourself. It also gives you something to work for—something to believe in. It helps you to characterize yourself as a person with endless possibilities!
Contrary to popular belief, money does not make the world go round; it simply makes the ride a little more comfortable. The financial aspects of your vision statement are imperative in creating a harmonious balance and equilibrium in your life. If you truly want to become financially independent and break the shackles of debt, you MUST change your central beliefs and attitudes about money. Money is simply a tool! Therefore, the key to wealth is NOT what you possess; rather, it is your attitude about money. You can be broke at any level of income because it does not matter how much money you have. What matters is what you CHOOSE to do with it.
Once you have thoughtfully prepared answers to the above questions and reflected upon what you have written previously in your Vision Quadrant and wealth commitment (refer to the course Financial Planning: A New Fiscal Beginning), you are now ready to create the first draft of your personal financial vision statement. Write it in the first person and make statements about the future that you hope to achieve. Write the statements as if you are already achieving them. Fully express the vision that you want for your life and your future. Develop a broad-scoped visualization of your path to success. Develop that same visualization for the level of success that you intend to achieve. Writing down your vision in this manner lends power and commitment to its overall accomplishment.
Now, before you formulate your own vision, read the example on the next page. Notice how many of the answers to the questions posted above are incorporated into the structure and how personal values are woven into the paragraphs. It has purposely been written as a generic example for you to pattern yours after.
“Far better to dare mighty things, to win glorious triumphs, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory, nor defeat.”
– Theodore Roosevelt
Congratulations! You have completed several processes in fashioning a well-lit pathway towards financial freedom. The first step was taken when you made the commitment to be wealthy! You set your mind and focus on doing whatever is necessary to achieve your desired results. You have envisioned those desires and have created a set of concrete goals, which have established the critical steps of your path. By mapping your future and by writing a Financial Vision Statement, you are solidifying the needed mindset and providing the essential motivation that is required to reach the end of the path.
<iframe src=”https://giphy.com/embed/JTavLQKgp5qXF0YtfY” width=”480″ height=”362″ frameBorder=”0″ class=”giphy-embed” allowFullScreen></iframe><p><a href=”https://giphy.com/gifs/summer-bus-family-vacation-JTavLQKgp5qXF0YtfY”>via GIPHY</a></p>Remember, this course is designed to help you blaze the trail and provide you with the hope that you truly can have anything that your heart desires. The keys are time, discipline, internal change, and work. Although the process may seem arduous at times, and change can be strenuous, the results are well worth the efforts.
Noted motivational speaker Tony Robbins is quoted as saying, “One decision can change your life forever.” Let that decision be the one you made when taking on the commitment to do this program. Give every aspect of this program your best efforts and watch the domino effect play out, creating the ideal future that you have envisioned.
Drawing from the knowledge you have gleaned from this course, take the following post-test.
Once you have established and can visualize your long-term goals, segregate them into short-term goals that will move you closer to your vision. Each goal should then be assigned multiple tasks that will complete the goal over time. Realistic time frames should be assigned for each task.
S specific, significant, stretching (well-defined and clear)
M measurable, meaningful, motivational (obtainable within a specific period)
A attainable, achievable, action-oriented
R realistic, relevant, reasonable, rewarding, results-oriented
T time-based, timely, tangible, trackable
In 2022, eventhough there’s inflation U.S. dollar is stronger than euro. Why?