How to become RICH - Part 2: How to find your Financial Target

     

    Lots of people work hard to have a Rich life. They work day and night and try so many ways to earn money but lots of them finally fail as they are not having enough money in the end. As per the researches done , one of the main reasons is not having a financial target. Not only financial but to achieve anything in life you should have a target. This target means to achieve your dream life. It can differ from one person to one person. But this is a proven process done by most o rich people for achieving financial freedom. You no need to compare your rich life to Mack Zuckerburg or Bill Gates. But you need to have some sort of wealth to achieve your financial freedom.

3 Steps to Find your Financial Target

1. Find the Cost of your Dreamlife.
2. Find your Current expenses.
3. Find your Current Incomes.

Let's discuss these 3 steps one by one. Don't miss this or postpone this. You are going to keep the first step to create your dream empire.

To explain this process  I'm taking a sample scenario of Sam. These values and dreams may differ from person to person but the method is the same for all. First, you should list down all your dream things. Then find the cost of each thing. It may be increase or decrease in the future but for now, take the current amount or estimated amount.

Let's see what Sam wants.

His dream is to build a house worth 10 million and buy a dream car worth 6 million and for having fun 2 million and 2 million for his wedding.

 Therefore the cost of Dreamlife of Sam is 20 million. As Sam, you can create your own dream life and find what is the cost for it. Don't postpone it do it now!!!.

Table 1

The next thing you need to do is determine in how many years you like to achieve this Dreamlife.

As per Sam, he needs to achieve his dream life in 10 years .

Therefore let's calculate how much he should earn and save in order to achieve it in 10 years.

Refer to this table to find how many years, months dates are there to Sam. Sam can divide his total cost of dream life by each value(month, day, hour) to find how much he should earn additionally.

Table 2

As said now Sam can see his target year-wise, month-wise and day-wise.

Table 3

Now Sam knows how much he should earn.

Next, we will move to the Second step. Here we calculate current earnings or income currently you have.

Let's check Earinings of Sam

Table 4

    

Therefore from above table we can see the total Income of Sam.Next we will go to third step where we need to find total expenses.

Let's find out current expenses of Sam.

Table 5

Now we know Cost to Dreamlife ,Current Incomes and Current Expenses of Sam.Hope you also have completed the mentioned 3 steps.

Finally we need to find whether Sam can achieve his Dreamlife with current status.

Let's check for Sam.

When reducing Current Expenses from Current Income ,Sam save approximately 20295 per month.But for his dream he need to Save 166,666 per month as per table 3.

Table 6

 Let's see how much Sam should earn additionally to reach his Dreamlife in 10 years.

We can use below formula for calculate.

As per the calculations now we can see the Financial Target of Sam.Like this you can find your Financial Target too.

Table 7

Hope you get idea to calculate your Financial Target.Now it is time to work on it .As mentioned in the above now you have target to achieve financially.From next blogs I will show you how to reach that Target correctly and easily.In all tables you can find that we check how much we earn ,Dreamlife cost and expenses in hours .we use it because then we see things smaller also our target is high.Always you should keep small steps.For now I'm stopping let's meet at next blog.

Thank you.

Wealth Hub