Welcome to part seven of seven ways to get financially independent. A series of tactics you can use to achieve financial independence as soon as possible. Remember it’s not about getting rich, it’s about getting free.
If you haven’t read them already hop over and read the previous articles.
Introduction to the series – Here.
Part One: Moving to a new country – Here
Part Two: Starting a side hustle – Here
Part Three: Alternatives to your car – Here
Part Four: Saving money on food – Here
Part Five: Invest in yourself – Here
Part Six: Housing costs – Here
So you’ve followed the previous 6 parts and are on the way to becoming financially independent. You’ve sold your house and moved into a shed. You now spend $1 a day on food, you walk to work and in the evenings you work on your secondary source of income. You do all this whilst living in some small south pacific island with a tiny cost of living.
Financial independence is almost upon you, it’s almost time to stop working for somebody else and focusing on your on yourself.
Seven Ways To Get Financially Independent In 2017: Part 7
Refocusing your goals.
“The world steps aside for the man who knows where he is going”
We talked about setting yourself up a plan in a previous post because if you don’t know where you want to go you’ll never get there.
Sometimes plans have to adapt. As you progress you will change as a person and realise the previous goals are not quite right anymore.
It happens that as people move close to financial freedom they either start saving less because they are almost there OR the complete opposite. They start spending less and their enjoyment of life starts to go down.
Below are some tips on reviewing your goals on the journey to financial freedom.
How often should you review your goals.
This can be quite a difficult question, should you be reviewing your goals on a daily, weekly, monthly or yearly basis?
Daily: generally on a daily basis very few things will change. Each day you may be slightly closer to your goal but there probably isn’t enough information to make an accurate decisions. Thinking about your goals and aspirations on a daily basis is great to help keep you focused.
Weekly: Do you have enough time to be reviewing your goals on a weekly basis, if you get paid monthly you may have had no money coming in on a week to week basis. Maybe you could determine some mini goals to push you further towards FI.
Monthly: I review my goals and targets on a monthly basis through our Net worth and share review and also the expense reports. It’s a large enough timescale for things to have changed but not so large that I can’t adapt if necessary
Yearly: This is probably too large a time scale. You may miss great opportunities because you haven’t pivoted quick enough to take advantage.
What should you be looking at?
What you review is a very personal thing. For me I want to know very specific information including….
When will I be able to stop working? Has my timeline changed over the last month for an expected retirement date
How have you progressed towards this in the last month? Have you moved significantly closer to my financial dreams.
How have your investments fared? Are your investments going up, down or staying the same.
Has your savings rate improved? Have you saved more or less than you expected. Were there unexpected expenses which will slow down the journey.
How to review your goals
How you should review your goals is entirely up to you, if you prefer to use traditional pen(cil) and paper then go for it. If you prefer spreadsheets and pie charts and flow diagrams then carry on.
I have a spreadsheet workbook which tracks everything across the course of a year. It gives me a visual representation of how well the year is progressing.
The important part is having a way of tracking your progress and putting it to good use.
Seven Ways To Get Financially Independent In 2017
Over the past few weeks we have looked at seven ways to assist YOU in becoming financially free and able to persue your dreams. The most important thing to remember through all of this is the only way you will be become free is by taking action. Only with action can you succeed.
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