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Financial Freedom

How to Accomplish Big Goals

How to accomplish big goals

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I am the first to admit that big goals can be scary. When you look at something all at once, it can be very intimidating.

Like, paying off $201k in student loans. That was a huge goal for me and very intimidating when I first started.

So, I didn’t think about that number at all.

As a matter of fact, I didn’t really consider my total number until recently. I only thought about my current debt I was working on paying off.

That was manageable to me. I couldn’t think about the massive goal, but I could focus on paying off chunks at a time. It made it easier and made me more motivated to start.

You can do this with any big goal that you have by following these steps.

1. Create your big goal.

Obviously, you need to have a goal you want to reach. I’m not talking about some small goal you have, those are important, but I’m talking big goals.

Like, reaching financial independence, or creating your own business.

These are big goals and will take time to reach. But, they can be done.

So, what are your big goals you want to accomplish?

I think it’s super important to have big goals. It gives our everyday a purpose. Yes, I’m serious when I say everyday because everyday we are working towards our goals in small ways.

2. Think of smaller goals to get to that goal.

Every big goal has many small goal parts in order to reach them. Reaching financial independence would be having an emergency fund, paying off all debt, contributing to retirement accounts, etc. To me, it means living a life on my terms, not because I need enough money to pay my bills.

These are still big goals, but they’re smaller than the large goal of reaching financial independence.

For my big goal of paying off my student loans, I broke it down by each of my individual student loans.

This allowed me to experience some wins throughout my payoff.

3. Create monthly and weekly goals to reach the smaller goals.

Goals can be reached with consistent habits done over and over again. It may seem like a hefty goal, but by consistently repeating a good habit, you will reach your goal.

For a financial independence goal, I am currently focusing on paying off my debt. My monthly goal is to apply $1,000 extra to my student loans every month, or more. My weekly goal is to stay within budget and work my side hustles to increase my income.

It might not seem like much at the time to make $50 from a side hustle, but when this is done consistently, that income grows. $50 every week turns into $200/month and $1,200/year!

Remember, small, good habits done consistently over a long period of time accomplish goals.

4. Track everything.

I’m a huge lover of all kinds of trackers. I love data and love to see my progression towards a goal.

Personally, I track a lot of different numbers in my current goal of paying off my student loans and my bigger goal of financial independence. Have ways to track progress for both!

I track my debt payments and progress on a chart and in undebt.it and I track my net worth in my Mint app. Now, I have to admit. When I first started, tracking my net worth was seriously depressing.

I was SO far in the negatives, it made me want to give up. So, I stopped tracking it for awhile. It wasn’t worth it.

Now, I am getting closer to a positive net worth and I am motivated once again by seeing my net worth.

If something isn’t helping you to reach your goals, stop doing it. It’s not worth it.

Break down big goals into smaller ones.

The key is to break down those big goals into smaller ones that you feel confident you can accomplish. Once you have smaller goals, figure out what you need to do weekly and monthly to reach them.

Eventually your smaller goals will help you reach your big goals.

Financial independence is so important to me. But, when I started my journey, I knew it would be a long way off. When you have $201k in student loans as a teacher, it’s going to take some time to just become debt free.

But, I’m slowly getting there and now my momentum is moving fast. Don’t get intimidated by your big goals, break them down and start reaching them.

You can reach your big goals, you just haven’t broken them into manageable parts yet. How do you accomplish your big goals? 

Financial Freedom

How Millennials Can Be Millionaires

How Millennials Can Be Millionaires

This post may contain affiliate links. Check out my Disclosure Policy for more information.

Millennials tend to have the reputation of ruining things. You see the articles all the time of the newest trend we have ruined in our society. The reality is that millennials seem to be breaking free of what is typical.

This is how I think about a lot of my own personal finances and others that I have helped. You need to create your own path to prepare for your future. The only person that can do that is you.

This goes for everything in life and I know I am walking a different path then most of my millennial peers, but I encourage you to do the same.

This is especially true for planning for your future and the possibility of being a millionaire. The reality is that millennials are at the perfect stage to become a millionaire.

Now, I get it. I’m sure a lot of you are drowning in the mistakes of your past. I know I am, but I have a plan to get out of it. And so can you, if you take the time to plan for your present life and your future life in retirement.

I just recently finished reading Everyday Millionaire by Chris Hogan. If you haven’t read it, you need to find a copy right now and start reading. I got mine from the library after being on the wait list for weeks. As a millennial, you have some amazing advantages on your side to becoming a millionaire, especially if you’re a 20-something.

Wouldn’t it be nice to add to the list of things millennials ruined as the generation to broke free of financial hardship and had the highest number of millionaires. It’s possible and here’s why.

1. Becoming a millionaire takes time, something millennials have a lot of.

I’m not saying you need to be busting your butt working all hours and investing your time into working. I mean you have many years on your side to becoming a millionaire. Millionaires aren’t created quickly usually, they usually are created slowly and after many, many years of careful planning.

The reason why it takes many, many years is because you are benefitting from the beautiful thing of compounding interest. This means that your interest is earning interest for you. This also means that the more time you have money sitting in your investment accounts, the less money you actually have to put in.

2. Millennials have been known for loving their work, making it easier to be a millionaire.

It only makes sense, if you love what you do, you’re more likely to continue working. Millennials have been known for doing work they enjoy, rather than chasing a higher salary for work they hate. Most people would consider this crazy, more money makes your life easier.

Your income doesn’t matter. What does matter is that you have the passion and drive to get up and go to your job every single day. That is much easier to do when you love your work.

When you enjoy your work, a lot of aspects of your life improve. This is important in order to become a millionaire. If you work solely because you love your work, not because you need to, your potential is endless.

3. A lot of millennials are living on tight budgets.

The reality is that a lot of millennials are living on little right now. If you’re like me, you have massive student loans and your starting salary isn’t great. Yeah, if I could go back in time, I probably would have not taken out this much debt, but I didn’t know any better at 18.

Looking at the bright side, living on a tight budget has taught me lessons to last me a life time. It has taught me how to be frugal and how to enjoy life while living on less. What prevents so many people from becoming a millionaire is lifestyle creep. More income, more expenses.

This doesn’t have to be the case. If you continue to live on a budget each month, of course less tight as your cash flow frees up, you will become a millionaire. Slow and steady with good money choices will lead you to that big money goal. Any one can do, most people just aren’t willing to make the right moves to do so.

Millennials will be millionaires.

I really do believe this. Millennials have everything in their favor to becoming millionaires, it just depends on if you’re willing to make those moves you need to make to become one. My ebook outlines how us 20-somethings can master our finances and set us up to be millionaires. How are you preparing to be a millionaire? 

Financial Freedom

Why I’m Choosing FIRE

Why I'm Choosing FIRE

I’ve been on my debt free journey for 3 years now and honestly, it’s taking a toll on me. I’m ready to be done with it and moving on to bigger goals. I’m excited to have my debt paid off, but I’m so ready to actually keep my money!

This journey is definitely hard, seeing all of my money going to debt is rewarding, but it still kills me to see all the money that goes to interest. I can’t wait for the day when interest is something that only makes me money, not costs me it.

Seeing my debts go down and the interest lower definitely is rewarding, but what has really kept me motivated lately is what’s to come once this debt is paid off. I’ve been doing a lot of research and I can’t wait to put my plan to action.

What is FIRE?

FIRE means Financially Independent, Retire Early and it’s a movement that I totally can get behind. It basically means that you live a life of financial independence, not controlled by money. Most people that support this movement don’t actually retire early, but they do work that they enjoy because they don’t need the money that comes from the work that they do. FIRE allows people to live the life they imagine for themselves because they are not tied down by money.

Why I’m choosing FIRE.

I’m still drowning in student loan debt, $97k to be exact, but I’m also still investing and saving money every single month. It’s not a ton, but it’s something. The reason I do this is because compound interest is on my side right now as a 20-something. I also know that I want something more for myself than just going to a job I hate everyday, so I’m starting to plan for my future now.

This is exactly why I’m choosing FIRE. I don’t plan on actually retiring early, but I do plan on doing work that brings me joy and doesn’t require me to need a certain salary to live. Everything I do is leading me to achieve FIRE, so that I can live a life that I choose, instead of one that is ruled by money.

How I will reach FIRE.

This is the part that makes me so motivated to pay off my student loans. My first step to reaching FIRE is paying off all of my student loan debt. This is a long road, which is why I am investing a small amount every month still. Throughout paying off my debt, I am budgeting every month and have found the things that I truly value. By finding what I value in my budget, it has allowed me to drastically cut my unnecessary spending.

This will be key in the road to FIRE because it allows me to have low expenses each month by living an intentional life. Once my debt is paid off, I will move my focus to saving and investing my money. By doing this, I will be able to live the life I want to live, instead of one that revolves around payments.

Choosing FIRE.

In the end, it all depends on what you want from your life. I personally want a life where I can do whatever work that brings me joy, or choose to do volunteer work. With my current finances, neither is an easy option for me. By attaining FIRE, I can do the things that I choose to do. Is FIRE something you hope to reach? How do you plan on reaching it?

Money Management

Why You Need to Start Cash Flowing

Why You Need to Start Cash Flowing

There are so many terms when it comes to personal finance and so many ways of doing things out there. I mean with a simple search on the Internet you will find endless resources for personal finance and how to go about getting your finances together. The most important is absolutely getting a budget together, cutting expenses, and increasing your income, but it’s also super important to create sinking funds and cash flowing larger expenses.

What is Cash Flowing?

This is one of those terms that is thrown around the personal finance world a lot and it makes sense, it’s super important. Cash flowing is when you have a larger expense and you delay the purchase until you have enough cash saved up for the expense. This tool is used when it is something you didn’t necessarily see coming (unlike a sinking fund that is for known expenses in the future). For example, I am cash flowing a new to me car instead of financing it. Of course, I could go out right now and get a car and finance it, but that would increase my debt. Something I am not interested in doing because I want to live a life of financial independence.

How to Start Cash Flowing.

You’re obviously not going to always use cash flowing, there is a time and a place. If it is a known expense that is happening in the future, like an oil change or yearly membership fee, you should have a sinking fund for it. If it’s something that you need to purchase and have time to save, then cash flow it. I’ll use my example of a new to me car. This isn’t an emergency and I have time to save for it. So, I’m adding money each month to a car fund I created. You need to decide where your priorities are and how quickly you want to cash flow the purchase. For me, I want to have it cash flowed by October, so I am sending a lot of my extra income from side hustles to this fund each month while still sending extra to my debts. Once you have made your decision, you can tweak your budget to find the cash for your purchase. Remember, a budget is not meant to restrict you, but to allow you to make the purchases you want.

Cash flowing has been a total game changer for me and my budget. Just by delaying a purchase until you have the cash to afford it, you can avoid putting yourself into debt. As I said earlier in this post, in order to obtain financial freedom, you can’t be burdened by debt and having to pay companies for past purchases with interest. Have you ever cash flowed a purchase?