Setting Wealth-Boosting Financial Goals

Generating income necessitates a strategic plan, but preserving and growing wealth requires the skill of setting effective financial goals. Merely saying, “I want to make more money,” is not a goal. It’s an ambiguous declaration that leaves your intentions unclear and your financial status hovering in the zone of “safe.” Do you want to be just “safe,” or do you aim for a future that is both comfortable and secure?

In a survey, majority of Americans in the workforce believe that they are not on track with their retirement savings as they should be. However, this fate is not predetermined. Understanding your financial objectives eliminates the guesswork, transforming your financial journey from shooting in the dark to a well-illuminated path. On this blog, we would like to share valuable insights on setting financial goals and implementing strategies to attain them.

Know your living expenses

Regrettably, many real estate agents overlook this crucial step. Sum up all the expenses essential for your daily life:

  • Rent or mortgage
  • Utilities
  • Marketing and business costs
  • Car payments
  • Food and medications
  • Entertainment
  • Taxes
  • Savings


Calculate any regular payments or expenses you can think of, and then add an extra $1,000 for unforeseen circumstances in life, such as unexpected illness, car breakdowns, or spontaneous expenses.

This total represents your Survival Goal. It’s the amount you need to consistently earn every month just to cover your basic necessities. However, it won’t provide for a better quality of life or enable you to retire comfortably.

Achieving Your Ideal Life

Imagine a scenario where you’re closing more deals and experiencing a significantly improved lifestyle. Picture owning that slightly more upscale home you desire, the cost it entails, or imagine driving a more desirable car. Envision the type of vacations you would indulge in.

Take a moment to relax and visualize this upgraded lifestyle. Then, research the actual prices on the net. Follow the same process as you did for determining your survival goal, but this time add an extra $3,000. Let’s call this your ideal life scenario.

Now, let’s take it a step further. Envision a perfect scenario where everything unfolds perfectly in the next 12 months – money flowing in seamlessly. Consider how your business would flourish, the amount allocated to marketing with new lead generation sources, and even contemplate where you would choose to reside.

This envisioned scenario represents your dream life, and by quantifying its cost, you establish your Dream Goal.

Prepare for the Future Adjustments

It might seem tempting to stop at step 2. However, such a mindset often leads to joining the ranks of the 80% of agents who will find themselves working indefinitely. Confront reality and determine the actual figures required to achieve your life goals both presently and in the future.

Begin by conducting a 10-year forecast of your life, envisioning that at the end of this period, you’ll be stepping away from your business to focus solely on living. First, document all three goals, then multiply each by 12 to calculate their yearly equivalents, and further multiply these figures by 10 for the ten-year projection.

For instance, if your Ideal Life Goal amounts to $125,000 per year, over 10 years, this translates to a total of $1,250,000. However, it’s crucial to break this down further. Note that you need to allocate 35% to taxes, 25% to cover business expenses, and another 25% to manage household expenses, leaving 15% for savings or investments.

Following this breakdown, after 10 years, you’ll realize that you can only sustain your current lifestyle for slightly over one year!

This realization may seem scary, and it’s important to deal with these matters right away.

Keep working on this step until you find a 10-year number that feels right for you. You may need to reassess and adjust your expenses or aim for a higher target altogether to ensure a secure financial future.

Determine the Strategies to Use to Reach These Numbers

Now that you have defined your refined Ideal Life and Dream goals, it’s time to explore strategies to help you attain them. The current strategies you are employing may not be sufficient to reach these goals. Fortunately, you have an opportunity to discover precise approaches that can lead to yearly numbers ensuring a more than comfortable retirement.

Achieving financial goals requires a financial plan. You may connect with a financial planner or a mentor to help you create your plan. As every individual has a different current financial status and dream goals, your strategies may be different from other agents. It’s important to look at how the wealthy people handle their finances, learn from a mentor, change your wealth mindset, invest on yourself, and ask for help as you formulate your strategies.

Know Why and for Who this is for

Choose the people and reasons that will shape your decisions and actions.

When setting goals, it’s crucial to identify the key players, influencers, or factors that will play a significant role in your journey. The “who” represents the people or group involved, such as mentors, spouses, or collaborators. These are the individuals whose guidance, support, or collaboration can impact your success.

Equally important is determining the “why” — the driving force behind your choices. This could be your motivation, purpose, or overarching goal. Understanding the “why” provides clarity and purpose, anchoring your decisions in a meaningful context.

By consciously choosing your “who” and clearly defining your “why,” you establish a foundation for a purposeful and well-guided path toward your objectives. This step ensures that your actions align with your intentions, setting the stage for more effective and intentional progress.

Determine Where Your Money Will Flow

We hope that agents reading this are not depositing their checks into personal checking accounts. If you are, the recommendation is to stop that practice immediately and instead open a business account. Once the business account is established, the suggestion is to proceed by opening additional accounts and promptly allocating funds into each:

  • Tax account
  • Home account
  • Fun account
  • Savings account
  • Investment account

In conclusion, setting and achieving financial goals is not merely a task but a journey toward financial well-being and stability. By defining clear objectives, devising strategic plans, and making informed decisions, individuals can pave the way for a secure and prosperous financial future. It’s crucial to regularly review and adapt these goals as circumstances evolve, ensuring continued progress. Remember, the journey towards financial success begins with a single step, and every action taken today shapes the trajectory of tomorrow’s achievements.