Time is one of the most highly valued assets of wealthy people, and they have the habit of spending their time wisely. Rich people put a high value on their time and use it wisely in high-value activities to move them toward their financial goals incrementally. The wealthy realize time is a limited resource and can’t be replaced once wasted. Rich people can buy time by paying others to do activities they don’t like or consider low-value uses of their valuable time, but they can’t get back the time they use. How wealthy you are is highly correlated with what you spend your time on and how well you manage it to optimize financial results. A prevalent phrase goes, “what gets measured gets managed.” And so, the wealthy have the habit of investing the majority of their time in wealth-creating activities.
To be successful, you need to have defined, measurable goals. Want to make more money? “I want to become a millionaire” is a wish, not a goal. Set a specific purpose, like making an extra $250 monthly. Then work backwards and give yourself small tasks to help you achieve the larger goal.
Wealthy people understand that writing down goals, reviewing them regularly, and focusing on achieving them are essential to success.
These are some steps wealthy people take when setting financial goals.
- Decide on what is most important to you. List everything, from the practical and pressing to the whimsical and distant. Lay everything you want on the table for inspection and measuring.
- Sort goals from the easiest to attain to the least attainable.
- Apply a SMART-goal strategy. That is, ensure your ambitions are Specific, Measurable, Achievable, Relevant, and Timely. SMART.
- Create a realistic budget. Get a firm grip on your incoming and outgoing funds, then work it to address your goals. Use your budget to plug leaks into your financial vessel.
- Dont use luck. Instead, a strict, realistic budget will help you utilize every dollar to achieve your goals. One way to stick to your budget is to send funds to a separate Savings Bank Account.
- Always keep track of your progress. This will ensure that you meet the required deadline; if not, you can quickly create contingencies.
A solid basis for setting any purpose is to make sure it’s “SMART”:
- Specific
- Measurable
- Achievable
- Realistic
- Time-bound
Say you want to save enough money to start a Side Hustle or pay off a car loan in six months. Gather all the details of your plan before you take action. Then, determine if the goal is achievable and practical by factoring in your income, savings and expenses.
You may need to be on track to save enough to attain your goal in six months. So push your deadline back to a year, automate your savings, or open a new Savings bank account with a higher interest rate and a sign-up bonus to speed up your progress.
