A study by the University of Scranton revealed that a whopping 92 percent of people who set goals every year never achieve them. If your dream is to live a life where you have financial freedom, then you need to ensure that you don’t bankrupt yourself while working towards it. You can do this by taking calculated risks and being smart when making financial decisions, whether you’re running a business or managing your income. Achieving your dreams only takes some patience, hard work and most importantly, planning.
Plan ahead by budgeting
In 2018, 58% of Americans had less than $1000 dollars in savings. Most people usually know what their expenses will be far before they come up. Yet, for some reason, they still treat them like surprises. Instead of saving, most people take out loans, live beyond their means and even max out their credit cards. If you want to realize your dream lifestyle as soon as possible, start budgeting for everything. Setting aside money for expenses will enable you to save more, and even have enough to start making investments. If you have debts, you might want to clear them since they might be holding you back from living your dream lifestyle. Of course, not all debt is bad. If you’re paying a $2,000 per month mortgage on a rental property that brings in $2,500, that’s good. Otherwise if you’re making payments for an asset that will not bring you money in the long run, you will have a hard time achieving your dreams unless you make a plan to clear the debts,
Buying your dream machine
Before buying things that you have always dreamed of having, you have to determine whether you can afford the overall ownership costs. The moment you leave the lot, your new car will lose 11 percent of its value and up to 30 percent in its first year of you owning it. If your dream is to own a car, search for the model of your choice, but one that was returned by a previous owner unable to afford it. This way you will have achieved your dream and also save a lot of money in the process. The same also applies to boats. Buying a pre-owned boat is far less expensive than new boats because they have already depreciated. You can look for one that is still in good condition and have the boat checked out by an experienced mechanic. However, a lot of these machines come with significant operating costs. For example, a boat will require you to pay for engine maintenance, insurance and storage. So before you make a decision, factor all of these costs and determine whether you can afford them in the long run lest you go bankrupt.
Put a plan together
In order to transform your dream into reality, you’re going to need a plan. There are many steps that have to be followed before you’re able to pursue your dream; most can be taken even while you’re still working. Keeping a job while preparing for your end goal will provide income and insurance during the period of time before your dream job can support you. If you feel the need to quit your job, you should have another business or emergency fund in your plan.
The best way to achieve your dream is to stay focused and set realistic goals. Find a way to spend your money wisely and you will be successful.
About Mohammad Mustafa Ahmedzai
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