You plan to. It’s not something that just happens by accident.
As we grow older, we begin to realize that life picks up speed. Months and years seem to go bye in an instant. Not only that, but it also means we have less time to do the things we want. Before we know it, the future is going to be our reality!
Truth be told, your future gets determined by your ability and willingness to invest in today. The more action you take towards your goals now, the sooner you will achieve them which is why you need to start planning for the future right this second!
The first step to take when planning for the future is determining what you want. There is no possible action you can take if you don’t first know the direction you want to go in.
Find a quiet place. Go where you won’t get distracted by family, friends, or technology.
While you’re relaxing, reflect on the following:
Many people I coach write their answers down in a journal. They find it helps to organize thoughts, concentrate, and ease their fear.
My favorite place to clear my mind is in nature. I find that walking in the woods, kayaking down a river, or surfing in the ocean, all allow me to experience peace. They help me to escape from all life’s distractions and think clearly. I gain clarity on the things that I want to do and the actions I need to take to make them happen.
Determining what you want can be the hardest part of planning for the future!
Once you decide what it is you want, create an outline for achieving it. The procedure starts with your end goal in mind. Your destination is reverse engineered back to where you are today, the starting point.
Your action plan will naturally include a list of smaller milestones for you to work towards. They serve as mini-goals and help you progress forward from one to the next. Working towards these targets also supports you in getting the things you want, without leaving them up to chance!
Mini goals stem from habits. They are more specific and get made up of the small actions that get taken each day as part of a routine.
These patterns make it easier to measure progress towards goals. They serve as a daily pass or fail benchmark that’s either achieved or isn’t.
Imagine that you want to save $500 more per month. This result gets reached through a daily savings habit of $16.67. You either save it or you don’t. If you do, you’ll reach your goal. But if you don’t, you won’t. Plain and simple!
It’s important to be aware of your actions because humans are creatures of habit. Your daily behavior becomes part of your routine, which creates order and discipline in your life. Over time, the good habits move you closer to your goals, while the bad ones push you farther away from them.
Your budget is the most important financial tool you have. It allows you to control your money and direct it towards your financial goals.
The three parts of a monthly budget are income, spending, and savings. Your income is the amount of money that you receive regularly. There are 3 main income types and they are all taxed at different rates.
Spending is the amount of money that gets paid out for goods and services. Most people spend over 60% of their income on their top expenses. The rest gets spent on their wants and little is left over for savings.
Instead, these individuals should be planning for the future. They need to do the exact opposite of what they’re doing now. This means saving to reach their goals first, then spending what is leftover!
The longer you stick to a budget, the more money you accumulate. As this capital grows, your wealth builds, and you get closer to your financial dreams!
Putting your money to work helps you to achieve your goals faster. Investing allows your money to multiply through the power of compounding. The sooner you start, the less you have to work and save!
But, what if you built good financial habits and were able to save and invest $1,389 per month at 7%? In less than 17 years you’d have $500k, saving you over 13 years of work. The extra time that you’d save would have a far greater impact on your life than the money ever could!
Growing up, I wasn’t sure what I wanted. But, I knew spending 30 years of my life in an office would be torture. Early financial freedom became my goal. I focused on building good habits, like following a budget and saving. They helped to maximize my investment capital and eventually quit my job at 35!
Money is an important part of planning for the future. Most of the elderly’s biggest fear is running out of it during retirement.
The amount you’ll have gets based on how much you save and invest now and the years that come. Then time and compounding will do the rest!
Planning for the future can feel overwhelming and your goals can seem far away. But, taking small steps forward each day will help you see progress and stay motivated.
Your daily habits help you achieve mini-goals. They lead to bigger ones that become your future.
No matter what your vision of the future looks like, one thing is certain. The sooner you start, the quicker and easier it will be for you to achieve your dreams!
Start right now.
How are you planning for the future? Comment below
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