17 May Meeting Financial Dreams That Feel Impossible
Have you thought about what your financial dreams are? You have them, whether they are written down, or just in the back of your mind. You might have young children that you hope to send to college someday, a house with 20 years left on the mortgage, or maybe even looking for your first professional career. Your dreams could be long-term, like affording retirement, or short-term, like being able to buy groceries at the end of the week.
It’s time to make these dreams achievable. Here are three steps to bring your dreams within reach.
Know Your Dream
First, flesh out the dreams. Make sure you know exactly what your dreams are. Your financial dreams will include anything you want to spend money on: living expenses, vacation, retirement, college, a house. It could also include a style of living you would like to embrace: staying home without producing income, living debt-free, supporting more family members.
You may have more than one dream, which is fine, but write them out separately. Wherever you have it—on a piece of paper, on a spreadsheet, etc.—make sure the document is accessible so that you can alter it as needed and not forget about it. You could actually make this fun. Post a picture of your dream home, vacation destination, or whatever your goal is on your fridge!
Know Your Deadline
The next part of achieving a dream is deciding on a deadline. The bigger your dream is, the more time you may need to reach it. Time can be flexible, so during this process, you may want to look at several different options and then weigh your urgency.
If you feel like creating a deadline is too vague and hard to accomplish, try working backwards. Instead of saying, “How many years until I can retire?” be firmer. “I would like to retire in 5 years.” You can make your deadline more urgent—retire in 2 years, for example—but you will need to change your plan. (See below.) Once you have a deadline, you just need to figure out how to get there.
Know Your Plan
Finally, you need to have a plan. Spoiler alert: your plan will involve saving money. You can’t bank on a windfall. Too many people expectto win the lottery. While that makes a lovely fantasy, you’ve got to bring that ship back to reality to actually get what you want. Meeting your financial dreams will involve some kind of change to what you are already doing.
Imagine your dream was to save enough for a down payment on a house in 5 years. Let’s say you plan to put down $20,000. This will involve coming up with an extra $4000 a year. How do you plan to do that? You may need to start smaller and then increase your savings each year. Make a list of what you can do. Write it down, and make sure you actually follow through. If your dream is to save the same amount faster, put more on the list!
The bottom line is that you are in control of reaching your dreams. You will decide how aggressive you are going to be in meeting them. At the Hopman Group, we want to help you meet these dreams and also have fun while doing so. If you are determined enough, your dream could be just around the corner.