Updated: Sep 27, 2019
I can't believe it is September! September means business planning time!
What we do today shows up in three months, right? So as of October 1, you are actually working on January 1 results. Crazy, right?
In September, we set our goals for the year 2020.
A lot of people ask in coaching, “Where do I begin creating my goals?”, “How do I even know what's possible?” There are two (2) steps to set your goal. Today I'm going to talk about Step 1.
STEP 1: Be clear on your income goals
When I was new in real estate, I picked a number (income goal) because it sounded good. It was the same income I made in my last job before real estate. So I thought if I can make that same figure, that’s good!
Not the best idea! That year, I got behind on my goal. There was a only little buy-in so I kept telling myself, “Why should I catch up?” I failed because the number I set was just picked out of thin air. This is not the way to do goal setting.
What we want to do is think about the number and it must have a meaning behind it. This is not a guessing game! Pick a number that impacts your life.
So how do we do that? First, figure out what is your Survive Number.
What is a “Survive Number” -- the income number that you must make to survive. These are the bills, food, fuel, internet, electricity, housing and other things you need to pay every month to keep away the bill collectors. Reminder, don’t forget the taxes! That is your survive number.
Next is to figure out your Thrive Number. I'm sure everyone doesn’t want to just survive, right? Most of us want to thrive. We want to have money to do other things besides pay bills.
So now you go through and you pre-spend money. On a piece of paper, write down the things you want to do if you were thriving financially.
Here are some examples:
1. Three (3) month emergency fund
2. Car payment
3. Take the kids to Disneyland
Figure out the expense and what it would cost.
Survive Number + Thrive Number = Income Goal
Now you’ve set your income goal. When you do your income goal this way, there’s a lot more drive behind that. If you can see that you’re behind your goal, maybe you can work on Saturdays so you can get caught up.
This is Step 1, Figure out what your financial goal is. In our next video, we will talk about how you take that financial goal and tie it to what you do on a daily basis from a number’s perspective. See you in the next video!