Money dreams and goals are not always simple. Sometimes you have more than one. How do you decide what to do and when? Should you try to follow all your dreams, but plan them at different times or should you just pick a few realistic ones?
A great process is to create a money dream notebook. For each page, title it with the dream. Then start to keep track of both your feelings and research.
The details you include will be dependent on the dream, but they can help you to plan and also compare your money goals. This notebook can also be a great starter for your family money discussions as well.
For each item, some things to consider are:
The steps required in order to complete the goal. An example may be home improvement project. You may need to secure the funding, hire a contractor and pick out the details.
How much the dream will cost. Break it down into little pieces. If the dream is a three month European holiday, then break the costs into airfare, hotel, food and more.
Where will the money come from? Determine plans as to how you can achieve your dream. Will you borrow from the equity in your home? Do you plan to save or use investments?
Start a pro and con comparison. This will be a key way to help you narrow your focus on which goals are realistic and also worthy of your money.
Label your goals. Determine if they are long, middle or short term. Also designate a prioritizing system. You can have a high priority goal also be long term, like retiring young. The incentive of a system is to help you budget your savings and also determine your investment strategies.
Overall, even the process of putting pen to paper is inspiring. It starts to make some of your dreams feel attainable. Having a plan is always the first step to reality.
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