Are You Underestimating Your Financial Goals?
I run an online business and I look to partner with like minded people who want to do the same. One of the questions I ask people is: “Ideally, how much would you like to earn on a yearly basis?” The vast majority of people give an answer of somewhere between $60,000 — $120,000 per year.
I find it fascinating that this is the income range that most people settle for. Keep in mind the question I asked was for their ‘ideal’ income goal. Most people give the figure of what they know they can make not what they truly want. I appreciate that in a job and in many businesses, you are trading your time for money and because there are only so many hours you can work, your income is limited. From this frame of reference, it is difficult for people to see beyond about 100K. In today’s world, with the cost of living, $100,000 does not go far. Only a few percent of people give an answer of $200,000 per year or more.
I read in a book recently that in 2009, the president of the United States said that if you make $250,000, you should consider yourself rich. Keep in mind that the tax on this income would be at least $100,000 leaving you with about $150,000. After you pay for your mortgage, payments on two cars, pay your property taxes, feed, clothe and school your kids, you might have $20,000 left. If you save this money for the next twenty years, you’ll have $400,000 assuming that nothing goes wrong. Now take into account that possibly both sets of parents didn’t plan well for their retirement and they outlive their savings by about 15 years and they depend on you to take care of them. If this happens, you will find out quite quickly that you massively underestimated your financial goals and you don’t have enough money to take care of them let alone your own retirement. You will spend more effort attempting to manage what you have created than what it took to accumulate it. This scenario does not take into account inflation, bad news, emergencies and any major events.
For those people who enquire into my business and they give an income goal of less than $100,000, I send them an email which asks them two questions:
1. What is it that you truly want to create in your life?
Write out on paper: Where do you want to go? What do you want to do? What things do you want to have? Write down any other goals.
2. With each thing you wrote down, assign a dollar figure next to it of the approximate cost to achieve this goal.
From here, tally up the amount to be able to achieve these goals.
Once people go through and do this exercise, it is amazing to see how the light bulb has gone on and some realise that they have totally underestimated what it will take to create what they truly want in their life. Many have never taken the time to stop and think about how their ideal life will look like because they have experienced so many years of adjusting their life to match what they earn from their job rather than sitting down and deciding what they really want and then go and find a vehicle that gives them the opportunity to achieve their goals.
This is the point of the email, to allow people to become clear on what their goals are so they can find the right vehicle to get them there.
In the USA, over 70 people pay themselves in excess of $50 million per year. Their total net worth would have expanded massively more than this but the amount they paid themselves to live on was $50 million for the year. When you see figures like this, you realise that there is so much more that is possible than the average $50,000 to $200,000 per year in income.
We are not taught how to run a business, to invest and to create wealth so unless you go and learn this for yourself you end up working a job which stands for Just Over Broke and you will never be able to create the lifestyle and abundance that is possible. The Internet has revolutionised the way in which people can make money. No longer do you have to invest masses of capital to start a traditional business. Now you can start an online business and with the right compensation plan and level of action, you can achieve results that used to be reserved for a few.
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