Are you making money for the sake of making more money? A lot of our clients started their businesses because they wanted financial freedom. They didn’t want to work for somebody else, they start out on their own. An admirable choice but often after growing a successful business, they continue to look for more money without clear financial goals in mind.
Maybe you’re thinking “make more money” IS a goal. And you’re not wrong. But this goal needs to be much more specific. You need to understand why you want to make more money, what is it for? There’s a lot that goes into financial goal setting.
After all, “financial freedom” is different for everyone. For some, it means not living paycheck to paycheck. For others, it could mean the flexibility to travel whenever and wherever, to own a boat, a vacation home; you name it.
Unfortunately, too many people aren’t sure what it would take to achieve these goals.
(Speaking of financial goals, here are the questions to ask your financial advisor to help you achieve them)
The problem with not defining your financial goals
This is the number one problem with not having clarity about your financial future: If you don’t know where you’re going, how will you know when you get there?
That’s why the first step in our financial planning process is getting clear on your financial goals. That’s the ONLY way if you know if you are succeeding, year after year.
It’s a lot like playing a video game without an end goal. You’re just shooting for the high score (AKA “make more money”) without a purpose or a place to go.
(Did you know setting financial goals can also help you achieve a work-life balance? Here’s how)
So, here’s what we want you to do instead.
How to create goals beyond “make more money”
Grab a pen and paper. Start listing four or five things that are super important in your life. Travel? Family? Fitness? Get clear on what your ideal financial future looks like with those priorities in mind.
Essentially, this exercise helps you craft what your dream life REALLY looks like, rather than just saying, “I want to make more money”. There’s nothing wrong with wanting to make more money, but without a clear idea for not only how you’ll earn it but what you’ll do with it, you’ll never really reach your goals.
With the help of this exercise, you can then start to go back and look at the money you’re taking out of your corporation and work out if it is getting you closer to your financial dreams. Otherwise, you will end up in a constant cycle of making more money, taking more money out, paying more in taxes, and being back in the same place every January 1st.
Get clear on your goals, and you’ll be able to achieve financial freedom.
We are here to help! Goal setting is a critical component of our financial planning process, but there’s a lot more we can’t wait to introduce you to. If you’re excited about your financial future and want help and guidance to reach your goals, we should talk. Click here to book a call, and let’s get started.
In the meantime, learn more about The Blueprint we follow to introduce you to a new world of wealth.