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Setting Financial Goals And Growing Rich

Setting Financial Goals And Growing Rich

Establishing financial goals are just as critical as making them happen, you have to know what your goals are before you can figure out how to achieve them. And once you determine your goals, you need an action plan to make them a reality.

Goal setting: step by step

There is no right way to establish financial goals. However, my tips in these steps will definitely help you get started:

  • Determine your short-term goals. Think about what you'd like to achieve in the next three years (buy a house, pay off credit cards, save $100 a month into an investment account).
  • Determine your long-term goals. Decide what you'd like to achieve in ten years or more (pay off mortgage, retire at age 50, buy a second home). In some cases, your short-term goals will help you achieve your long-term goals.
  • Make your goals specific. They should be concrete and measurable. For example, "I want to be rich when I retire" could become, "I want to be able to spend $5,000 a year for travel after I retire at age 65."
  • Make your goals actionable. What specific steps will you take to achieve your goal? Perhaps contributing more to your 401(k) plan or bringing lunch to work instead of buying it. Whatever your goal may be--it needs an action plan to make it a reality.
  • Take action immediately. Even by just making a phone call or looking up information, your goals will feel more real and reachable.
  • Make a list of your goals, review it often and share it with family and friends. Constant reinforcement and support are invaluable to achieving your goals.
  • Don't give up. If things don't happen as you originally planned, then just redefine your goal or action plan.



Money as a Tool

Money is a tool that God gives to us to use to advance His kingdom, give to others as well utilize for our personal discretion. There are many people today that live under the fear of losing it all. They wonder day and night what could happen to them, their loved ones and even their financial investments. This is a strategy by the devil to stop them from succeeding and building a financial empire. As I travel around the world, I often hear statements like: “What about if I never get rich financially? My response is always- What about if you can get rich financially!

Being financially blessed is not going to make you lose your salvation or trust in God. God is the source of true wealth and prosperity. He is not going to give you anything that will make you go far from Him. The scripture says in 2 Timothy 1:7 “For God has not given us the spirit of fear, but of power, and love, and of a sound mind.”

Money is a tool to be used in serving God and creating the life that we desire here on earth.


If you drive a Range Rover or a Land Rover and have a Landlord, something is wrong…anonymous

 

Get out of Debt, Be Yourself!

 In 2005, a record 2 million households in America filed for bankruptcy protection.

The easiest way to live debt-free is to live within your means. Keeping up with the Jones’s will only lead you more into debt. You don’t need to keep up with anybody but yourself. 

It is ironic how we have accepted debt as a part of our lives. You’re celebrated on how much debt you have, driving a car you can’t really afford.   

I know a man that was doing really fine financially, yet he wasn’t happy with the high taxes he pays to the IRS. His accountant advised him to go get a bigger house so that the government will give him a tax break. When I heard of it, I knew that this was a wrong move for him because it will make him borrow more money from his bank, strain his income and drown him in debt. 

He wouldn’t listen to me and went with the counsel of his accountant and bought a very big house in an upscale part of town. Four years later he sold the house for less than what he originally paid for it and lost about $40,000 in the process.   

Another friend of ours got married and within six months bought a huge house and two cars. I was invited to their house and was impressed with the design, not their decisions. 

I sat the couple down and asked how they paid for all these things. “Credit of course,” was his reply. I told them point blank that from their income and debt ratio, they can’t afford their standard of living and if they don’t receive my financial education they will crash soon. Of course, they didn’t like my counsel and didn’t talk to me again for the next six months.

A little while after, the wife got pregnant, lost her job due to the pregnancy complications. Hard times hit without warning like the Hurricane Katrina and they lost their house, cars and most of their belongings. I tried to save them from the forthcoming disaster but they didn’t listen,

Will you listen to me? I may be trying to save your life, business, marriage or financial future. I need to ask you again, “Who are you trying to impress?” Are they really worth it? Have you saved enough for emergencies? Are you concerned about your debts? The scripture says that the borrower is a slave to the loaner. 

How true, when the credit card company dictates what you can do, qualified to buy and even what type of job you can have. I get tired of seeing people who want to copy what others are doing. 

Do you know that Warren Buffet lives in the same house he bought in Omaha, Nebraska for $31,500 in 1958? Could you envision that he does not carry a cell phone, does not have a computer in his desk? 

This is the second richest man in the world! I read in Time Magazine, that Russian president, Vladimir Putin, has never sent an email in his life, and don’t carry a cell phone. These men chose to be different. High spending habits often lead to debt. Before you swipe the card again to buy that luxury item you can’t really afford, think of other worthwhile investments you make. Uncontrolled spending is a sign of a much greater problem. Here is a question check:

 Do I really need all these extra features on my phone like internet, ring tones, music player, or fave 5?

Do I need these designer-label clothes?

Must I drive a Mercedes right now; or would a Toyota Camry be fine?

How useful are those chrome wheels to my car?




 

Your financial actions today will determine your financial future tomorrow

People often increase their spending when their income slightly increases, and in few months time, they are back to where they started in a financial struggle. Please don’t go buy a Bentley or a BMW because you got 20% increase in pay. The increase is not for your spending, it’s for your saving and investing. Be wise my friend. Don’t embezzle your future today because of your inability to delay gratification. Debt can be eliminated if we can spend wisely. Evelyn Adams won the New Jersey lottery twice in 1985 and 1986 for $5.4 milion. Today the money is all gone and she lives in a trailer.

Blueprint For Success is about defining and re-defining Success. Success is truly about living your purpose and finding fulfillment. Fulfillment is greater than joy, peace and happiness. Imagine a person who has all the money in the world, plus joy, peace and happiness but still don’t feel fulfilled. That’s a loser!


HOW MILLIONAIRES GOT THERE

 Stock market or other investments.   65%

Paid employment or CEO type job. 58%

Real Estate. 54%

Independent Consultant/Contractor. 37%

Received inheritance of more than $50,000. 30%

Started self funded business outside the home. 29%

Started home-based business.  17%

Franchise/Marketing/Distributor. 14%

Started business funded by others. 12%

Invented product. 3%

(Reprinted from The Millionaire Zone by Jennifer Openshaw. Hyperion, 2007)

INVESTMENT STRATEGIES

 

Investment in the Kingdom of God

This is by far your best investment. Every other investment you make will pass away, only investment in the kingdom of God has any Eternal value. You can invest in the kingdom of God and into your heavenly account by sharing with others the resources with which God has blessed you here on earth.

Invest in your church, your pastor, your church members, other believers and all those that God placed around you. 

You’ll always be rewarded for your giving. Luke 6:38 “Give and it will be given unto you: good measure, pressed down, shaking together, and running over will be put into your bosom.” (NKJV). Kingdom investments produce rewards that are beyond this life.    

 

Invest in your Life Vision

I have discovered that it is better to invest more on your Life Vision than spend money on name brand clothes or dinning in fine restaurants when you can’t really afford it. Each year I spend more money on books, tapes, cds, dvds, and success magazines in preparation to live out my Life Vision than I spend at department stores. You are more than things, you are a person. 

I believe in your glorious destiny and it is worth investing into. There’s Success in your belly. Let’s live a vision-minded life. Choose your priority. Are you going to live for now or invest in your future?

 It’s a better to investment on your Life Vision than on depreciative items such as designer-label clothes, shoes or bags.

 Invest in a Life Insurance

I have seen financial disasters happen to families when a bread winner suddenly dies. Recently, a very good friend of mine in his early forties, with a wonderful wife and a six months old baby unexpectedly died without any prior notice. He did not have any life insurance. 

Imagine what may happen to their house, vehicles, education for their child and the general upkeep of the family. 

Please when you start having a family -it doesn’t matter if you’re male or female, invest in some life insurance.

 It’ll be worth every penny of it. I’m not advocating that you should live with a fear of dying young. No! All I am saying is that a life insurance is worth the investment should anything happen to you or your loved one. 


Build a Million Dollar Retirement Account

One statistics say that “Only 5 percent of Americans can afford to retire at age 65”.

You can use payroll deductions to start an IRA (individual retirement account) by investing a small amount of money over time to grow into a substantial retirement amount. 

You will always attain your retirement goal when you are consistent and committed. Let’s say you invest one thousand dollars at age twenty five (about $2.74 per day) at 18 percent interest at the age of twenty five, you could have over one million dollars at age of sixty-five (with compound interest, everything being equal).

Also, Dwight Nichols stated in his book “God’s Plans For Your Finances,” that, if a person invested two thousand dollars per year ($5.48 a day), starting at age twenty-five, the retirement principal would be almost 2.3 million dollars at sixty-five years old. 

The income on this amount would be approximately twenty-four dollars per month or $288,000 per year without touching the principal. You can be a financial empire as large as you want with a little investment today. 

Set your financial goals. It’s sad that many young people don’t care or plan for their future. In the last three years I have being on a global crusade teaching and admonishing young people to plan for their financial future. Sometimes it seems my words are falling on deaf ears, or speaking Greek to a gypsy.                                                                                       

Dear Reader, there’re too many people suffering today at an older age; because they’ve failed to plan for their financial future. 

This is why I wrote this section for you. Lets be proactive NOW and live better later years. I encourage you to talk to the financial and investment advisers in your country and learn ways to save and invest towards your future.

How to Save on Interest and PAY OFF your Mortgage sooner

You can literally take years off mortgage loan. Having a 30-year mortgage at the current high interest rates that many financial institutions offer today (7% to 20%) is ridiculous. 

Here is a Home $aving tips for you:

If you want to reduce the principal on your loan, just make one additional payment each year. Simply divide your mortgage payment by 12. Add this amount to your regular payment each month and apply it to the principal balance. By the end of the year, you will have paid an extra payment- all principal.

You can also create your own payment schedule to add each month-$25, $50, $100. Check with your lender to make sure there’s no penalty for early payoffs. For example, with a 30-year mortgage loan of $250,000 at 7% your monthly payment would be approximately $1,664. But if you add an additional $140 per month, you can take 6 years off the term of your mortgage and save $84,900.                                                                          

In another instance, a typical 30-year mortgage at 8 percent blow up the real cost of a $250,000 home to more than $660,000. That is almost triple the original price of the house. You can save about $168,000 if you pay off that mortgage in 15 years bringing the total cost of the house to less than $493,000.                                      

It alarms me that many people are unaware about this simple mathematics that can save you hundred of thousands of dollars. Instead of squandering an extra $100 to $200 a month on self-indulgent items like eating-outs, extra clothes, name-brand shoes or partying. 

Why not invest that money into your house mortgage principal, car loan or credit card debt. You will be amazed how much it will revolutionize your life and you get out of debt quicker.

You may also visit the following web site’s mortgage local calculator:

www.mortgage101.com

www.mortgage-calc.com

www.lendingtree.com  

What about paying off your mortgage right away?

Well, this is not a bad idea. Make sure it fits into your Life Vision-See Essential #1.

Sometimes paying off your loan immediately may not be a prudent idea; because that is money you could invest or use to pay off debt or in some other venture that fits into your Life Vision that you are giving to your bank.

Many millionaires still pay mortgage on their homes. But I am a big proponent of the debt-free principle.


 HAVING AN EXCELLENT CREDIT RATING    

a. Obtain a free copy of your credit from each of the three reporting companies at -www.annualcreditreport.com

b. Check for errors: This helps to ensure that it is being correctly reported.

c. Make sure that your creditors, banks, mortgage etc report your payment to the three credit companies. If it’s not reported monthly, this can affect your credit rating too.

d. Contact creditors quickly if you find errors: The Fair Reporting Act requires the credit agency to correct all errors and send a notice to anyone who has requested your report in the last six months.  

 e. High balances are a negative factor because lenders worry that you are living beyond your means and may not be able to repay them. Also cancelling or closing all credit card accounts you have and don’t use many also affect your credit rating negatively.

f. Having a lot of available credit, even if you have no credit card debt, will lower your score, because there is a risk that you could quickly run up a lot of debt. Sadly, many people don’t know this. They keep accepting every card that they receive in the mail thinking that it will help their credit power. No it won’t.

g. Negotiate your credit card debt with your credit card company. You need at the minimum one year- and- a- half to clear up records of delinquent payments, so start working today.

 COMMON CREDIT TERMS

  • Credit score: a score based on variables in your credit file that is indicative or your creditworthiness.
  • Current ratings: shows total of all account types that are currently delinquent 30,60, or 90 days
  • Inquiry date: date your credit file was requested by a third party
  • Monthly payment: average monthly payment reported to the credit reporting agency- may be estimated by the agency if not reported by the creditor. (This may be indicated by an asterisk *)
  • Original creditor: shows the original creditor that turned the account over to the collection agency
  • Prior delinquencies: date account was last reported delinquent
  • Revolving account-an account where a balance can be carried over from month to month
  • Account status: shows the current status of your account and may indicate delinquencies that were reported in the past seven years 

 

Where is your money going?

If you take a financial inventory of your life, you might be surprised to see a large amount of money is wasted on items you could easily do without. A few cents here and there will eventually compound to a large dollar amount over time. Did you know that in 1999 Americans spent more than $18.5 billion on coffee and bought 23 billion packs of cigarettes?  

Two years ago, my family and I stopped buying sodas or beverages –Coke, Fanta, Sprite; when we go out to eat in restaurants and other eateries. You’ll be amazed how much money and sugar intake we have saved by drinking only water.

Start a budget and record your expenditures in a notebook each month. Track your expenditures and your receipts to see where your money is going.

 

7 Quick Investment Tips

1. Avoid individual stocks and bonds -diversify.

2. Never use life insurance as an investment.

3. Don’t put your money into rich-quick-schemes.

4. Buying daily lottery tickets is not wise investment

5. Patience is a not only virtue, it’s profitable

6. Plan to invest long term.

7. Don’t overpay for investment services.    

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