Setting Financial Goals and Reviewing Finances at the End of the Year

The new year is fast upon us. Even though we're in the midst of the busy holiday season, this is a convenient time to consider the success and failures of this year and look forward to plans for next year.

Even though the articles you're now seeing in your feeds on "10 End-Of-The-Year Planning Ideas" can be useful, they just don't get it done because they're not focused on the core need.

The fundamental key of financial planning is to understand the process. Building wealth is a process. Achieving goals is a process. It's simple and can be readily replicated if you understand it.

It starts with a clear desired outcome. A.K.A. a goal. Or objective.

Then, it's a matter of laying out a strategy that is likely to work. And that strategy is connected with specific action steps.

And then you simply repeat the cycle over and over and over again.

Enjoy the show. I hope that it's useful for you!

Joshua

p.s., this might be a great show to share with others. Let me know if it's helpful.

Potential Journaling Prompts:

Simple Goals: What are 10 goals you'd like to accomplish during 2015? What I Want list Make a list of 30 things you want to do, 30 things you want to have, and 30 things you want to be before you die. Ideal DayThink through what a perfect day would look like for you. Describe it (in writing) with as much detail as possible. Where are you, what does it look like, who are you with, what do you do, etc. Strategic Coach Questions 1. If we were meeting three years from today, what has to have happened during that three-year period for you to feel happy about your progress? (Personally, Professionally, Financially and any other category you want to think about.) 2. What are the biggest dangers you'll have to face and deal with in order to achieve that progress? 3. What are the biggest opportunities that you have that you would need to focus on and capture to achieve those things? 4. What strengths will you need to reinforce and maximize, and what skills and resources will you need to develop that you don't currently have in order to capture those opportunities? Visioning Exercise (excerpted from Jack Canfield's "Success Principles" book This is an exercise that is designed to help you clarify your vision. Although you could do this as a strictly mental exercise by just thinking about the answers and writing them down, I want to encourage you to go deeper than that. If you do, you'll get deeper answers that serve you better. Start by putting on some relaxing music and sitting quietly in a comfortable environment where you won't be disturbed. Then, close our eyes and ask your subconscious mind to give you images of what your ideal life would look like if you could have it exactly the way you want it, in each of the following categories. 1. First, focus on the financial area of your life. What is your annual income? What does your cash flow look like? How much money do you have in savings and investments? What is your total net worth? Next...what does your home look like? Where is it located? Does it have a view? What kind of yard and landscaping does it have? Is there a pool or a stable for horses? What color are the walls? What does the furniture look like? Are there paintings hanging in the rooms? What do they look like? Walk through your perfect house, filling in all of the details. At this point, don't worry about how you'll get that house. Don't sabotage yourself by saying, "I can't live in Malibu because I don't make enough money." Once you give your mind’s eye the picture, your mind will solve the “not enough money” challenge. Next visualize what kind of car you are driving and any other important possessions your finances have provided. 2. Next, visualize your ideal job or career. Where are you working? What are you doing? With whom are you working? What kind of clients or customers do you have? What is your compensation like? Is it your own business? 3. Then, focus on your free time, your recreation time. What are you doing with your family and friends in the free time you’ve created for yourself? What hobbies are you pursuing? What kinds of vacations do you take? What do you do for fun? 4. Next, what is your ideal vision of your body and your physical health? Are you free of all disease? How long do you live to? Are you open, relaxed, in an ecstatic state of bliss all day long? Are you full of vitality? Are you flexible as well as strong? Do you exercise, eat good food, and drink lots of water? 5. Then move on to your ideal vision of your relationships with your friends and family. What is your relationship with your family like? Who are your friends? What is the quality of your relationships with your friends? What do those friendships feel like? Are they loving, supportive, empowering? What kinds of things do you do together? 6. What about the personal arena of your life? Do you see yourself going back to school, getting training, attending workshops, seeking therapy for a past hurt, or growing spiritually? Do you meditate or go on spiritual retreats with your church? Do you want to learn to play and instrument or write your autobiography? Do you want to run a marathon or take an art class? Do you want to travel to other countries? 7. Finally, focus on the community you live in, the community you’ve chosen. What does it look like when it is operating perfectly? What kinds of community activities take place there? What about your charitable work? What do you do to help others and make a difference? How often do you participate in these activities? Who are you helping? You can write down your answers as you go, or you can do the whole exercise first and then open your eyes and write them down. In either case, make sure you capture everything in writing as soon as you complete the exercise.