Saturday, December 19, 2015

#1 The Greatest Mistake

Update Dec 2015: Just reposting some old blog posts that some might find useful

I have decided to write the next 10 postings about the Road to Financial Freedom.

Today's #1 posting is about THE GREATEST MISTAKE one can make in their journey towards financial freedom.

I believe that the greatest mistake on the road to financial freedom is the failure to plan. As the saying goes : " If you fail to plan, you plan to fail". Likewise in your journey to financial freedom, if you have no plan, you will most probably fail.

Too many people want to achieve financial freedom or just simply want to be rich or filthy rich. The problem is that they have no idea about what their financial goals are and whether they will ever reach it. As Stephen Covey will put it: Begin with the end in mind.

Before we begin our road to financial freedom, we need a goal to work towards. We basically need a financial plan that will show us :
(1) Where we want to be in the future financially (the end goal)
(2) Where we are currently (our current reality/situation)
(3) How are we going to get to our goal (the game plan)

The journey to financial freedom thus has to begin with a plan. And this financial freedom plan can only be crafted if you know where you want to be in the FUTURE, where you are NOW financially, and how you intend to work towards achieving your goals in the PRESENT moment.

For example:

I know that my financial freedom goal is to achieve a passive income of $2800 per month by the year 2022 (FUTURE). NOW, I am achieving slightly above $200 per month in passive income.
Since now is the year 2009, I have set the goal of achieving $400 per month in passive income by the end of this year. How I set out to achieve this goal is to reduce my expenditure and increase my sources of passive income. (This is what this Financial Freedom Blog is about afterall - to track my goal of attaining a passive income of $2800 per month)

Remember, a journey of a thousand miles begins with a single step....in the correct direction. Make sure you know what direction you want to head in first before saving and investing your money. Always have a plan in mind. This plan can change along the way but you must always stick to your plan and review it constantly.

Read the Entire Series:
1. The Greatest Mistake
2. Protect What You Cannot Afford to Lose
3. Spend Less Than You Earn
4. Spend Less Or Earn More
5. Buy Assets Not Liabilities
6. Read and Learn More
7. The Magic of Part Time
8. Health Equals Wealth
9. It's A Marathon, Not A Sprint
10. Congrats! You Have Achieved it.

2 comments:

  1. I agree one of the reasons is the lack of a plan, set goals. thanks for the article

    ReplyDelete

Popular Posts