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6 Great Financial Goals to Hack 2020 Financially

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6 Great Financial Goals to Hack 2020 Financially

 

 

 Whenever I’m talking about goals I want to make sure we understand that the really major things we’re trying to do in our life particularly in this world we’re in to try to become financially independent to try to become financially free I don’t think having a goal

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of doing that is going to be sufficient I think what you have to do is make a promise to yourself goals can be really a problem so we’re gonna talk about goals today but I want you to realize that goals can also be kind of intentions that make you hmm maybe kind of take you off the hook of actually trying to get done what you’re trying to get done so for example if I say it’s my goal to see you at dinner tonight at 6 you kind of know I there’s a good chance I won’t be there right because a goal is kind of like an intention and you’re gonna remember the old saying that the road to hell is paved with good intentions so one of the problems we have with goals is I’ve got a goal to lose way and a goal to stay in shape a goal to do this and do that and it really kind of boils down to a bunch of intentions that we may or may not do so what I want you to do is I want you to form these goals we’re gonna talk about around a very serious promise to yourself that you will achieve in a very specific amount of time and the way I’d like to do it the way I’d done it in my life is just say look I’m gonna make X amount of dollars in X amount of time and I’m gonna focus on that I’m gonna write that down as a promise and sign it and date it and that’s gonna be a major focus of my life to get that done so we can’t make tons of promises right we have to have goals that will point us in the right direction but start with a major promise about your finances that you’re going to achieve

 Now if you want to achieve your goals these are the the sub goals that are gonna take you on that route to your promise right so if the if the promise is you know you’re going to cross the country from California to New York and you’re ending up in New York City in a year then you’re gonna have goals to get there I promise I’m going to be in New York and one year and then my goals are I’m going to you know from Los Angeles to Las Vegas in a certain amount of time and so on so goals are gonna be these steps to get to this promise that we have of having a great financial freedom so if we want to achieve these things then first thing we have to do is we have to set them now I know it’s simple all right it’s simple but it’s really true



we obviously have to set these goals you have to know what it is you want to achieve if you want to achieve it and every high achiever and success guru focuses on this Warren Buffett,Tony Robbins,Brian Tracy all these guys are gonna tell you that goal setting is a huge part of their success it’s a big deal to be step by step to some really really important final promise now the key to setting goals is to make a habit of setting them and then revising them as you achieve them or as you fall short of them I set new goals every year every month every week hey I even look at my goals every day and review what it is I want to achieve that day that’s what allows me to spend time fooling around on my horses when it comes to your finances it’s important that you get in the habit of setting annual goals everything we do with money revolves around a year right what’s our rate of return that’s a year what’s our compounded annual growth rate that’s a year so spend time every year before the new year to determine what you want to focus on in the coming year now to help get your finances on the right path here are some clear financial goals that I recommend you set going into the new year

1. Set a budget

 So first I want you to set a budget I love budgets I’m really bad at them probably you are too I know you don’t want to hear this no just the way it works but you have to set a budget particularly if you really are struggling to get to a potentially great retirement you’ve got a set of budget it’s the most important thing you can do so no matter how much money or how little money you have you set a budget here’s what I would argue I would argue that the less money you have the easier it is to set a budget because trust me when I was living off of $4,000 a year I knew exactly where my money was going you got to pay attention right if you’re living in India trying to make $4,000 stretch you got to pay attention so having no money actually taught me how to manage my money so wherever you are in your financial journey this first step is essential so budgeting is the key to getting control of your finances a budget is your map for financial accountability and responsibility I know it doesn’t sound fun and it isn’t but setting a budget allows you to exercise discipline and that’s the key when it comes down to how you spend your money it’s all about discipline for instance do you know how much money you’re gonna put into necessities versus how much you’re gonna put into savings well it’s gonna be very difficult to build wealth long term if you don’t know right so budgets are actually passed to financial freedom by managing your money you can control how and when you are able to reach your other financial goals and ultimately that financial promise you’re making to yourself 

2.Make a savings goal for yourself 

second make a savings goal for yourself once you’ve set a budget it’s time to set a savings goal for this year your savings goal should be attainable but it should also be as aggressive as you can manage I like to say you should put away 10% of every paycheck so you never even see it just pay yourself first so that you never even have to think about it and then figure out how to live on the rest of it and adjust your budget accordingly remember the more you save now the more the money will multiply our compound in the market as kind of time rolls along it’s incredibly important to understand the power of compounding on the money you save now also it’s important to put aside your savings money first before you pay anything else if your savings are the first part of your budget that you pay there’ll be much less likely to get left out just pay yourself first budget off the rest 


3. Pay off Bad Debts



third I want you to pay off bad debts so the only financial goal more important than saving and investing is saving and paying off bad debts now bad debts are a particular kind of debt they’re debt that is carrying a very high interest rate like 18% interest 15% interest that could easily end up being what you’re paying on your credit cards get rid of those because making fifteen to eighteen percent a year is fantastic investing so if you can just pay down eighteen percent credit cards that’s as if you’re making eighteen percent a year as an investor now there is good debt good debt is the kind of debt you incur when you’re investing in something when it’s about to produce an it’s an asset that produces a great return so for example if you were to borrow money to put into a house that might be really good debt because you might get a great return on that investment also investing in a college education investing in a high school education is fabulously good debt right so debt for education that’s going to that’s going to benefit you by making you more productive that making you more money is good debt bad debt when you go out there and charge stuff to impress people you don’t know who don’t care about you anyway that is the worst kind of debt in the world so stop doing that so high interest bad debt such as credit cards they work exactly the opposite of good investment they’re gonna decrease your net worth rather than grow it so paying off debts such as these should be your first priority and this year is as good a time as that eight to become debt free of bad debt 

4. Your credit in check

so start the year off right by getting a handle on what your credit score is and the factors that affect it if your credit score ends up being lower than you would like it to be then take some steps to improve it so pay off debt and keep the balances on your credit cards low that works pretty good too getting a better credit score here’s some things that knock your credit score down you might not realize when you go out and think about applying for an automobile loan or something and maybe you go to two or three places those will tank your credit score if they run those credit score checks so be careful when you do a credit check through and then through somebody you want to buy something from particularly something big like an automobile that you ask them if they’re gonna do it in such a way that it’s gonna hurt your credit score

5. Get your taxes done early

 like it or not tax season always comes up quicker than you think each year far too many of us make the mistake of waiting until the last minute to get your taxes organized let me tell you about a horror story alright Melissa and I always waited to the last minute our accountant our CPA would handle it and they would take care of things in the last minute they would turn him in and a few years ago they shifted from digital or from paper to digital app tax filings and our guy had to sign our documents and then he submitted them digitally that meant a signature win and that was digital three months later right after the time when you’re supposed to have done your taxes he gets a notification that we haven’t filed our taxes yet and the reason is is because we have not signed them so we needed to sign them apparently in ink and have the IRS have the original so we signed a document in ink and sent that in they lost it three months later we find out they still think we haven’t paid our taxes we sign another digital document they lost it we sent it in another digital document we don’t hear anything back we think everything’s all right fully a year later from the first letter we get another letter that says

we have now been late in our taxes for over a year and we owe them one hundred and twenty thousand dollars of penalties well that’s a pretty big shock let me tell you and so we start to fight this right we go to arbitration and we think we’re in arbitration turns out we’re not in arbitration we’re in collections we don’t even realize that for six more months then as we start to find out we’re in collection the person that’s trying to collect the money from us at the IRS goes on maternity leave for three months when she comes back instead of talking to us she simply filed a lien on our house so you guys this is crazy

 

I mean we had the money to pay the taxes so we run down to the IRS we say holy criminy you guys just leaned our houses it’s nuts what are you doing oh and by the way they realized they’d made a mistake and they just avoided all of that but they still had the lien on our house so they said well you’ve got to go down and pay this a little bit and we ran down to write a check to pay it and they said they wouldn’t take checks we said we’ll give you cash this is week we can’t pay cash we have to put you on a payment plan I mean this is you can’t make this stuff up so here’s the point avoid this stress and hassle that comes with waiting around to the last minute because things can happen and set a goal to have your tax documents fully prepared as soon as possible get ahead of the game and don’t let the bureaucracy gives you a nightmare like it gave us we got it all straightened out we love the IRS hey IRS guys we know we need you not trying to knock you down or throw you under the bus but it was a crazy time 



 

6. Take some time to research companies to invest 2020

Might just be an amazing year to get amazing deals on really wonderful companies that you wouldn’t be able to get at any other time in the last decade that’s why saving and getting your finances in order is so critical and so important when the market drops and when it plummets we want to be ready to take advantage of the fire sale on wonderful companies so make it a goal to put at least five companies on a wish list in the next year now I’d love to hear from you guys do you have your goal set for 2012 what are some of your goals and what’s your big promise what are the thing you are gonna do to get yourself financially free

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