Brick By Brick Apprenticeship
Pillar #3: Goal Setting
"By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be. Put your future in good hands - your own.
- Mark Victor Hansen
The process of setting goals is massively important. A few reasons come to mind:
Motivate us to achieve things we normally wouldn't do naturally
Keep energy levels higher then people without goals.
Keep your FOCUS on what matters.
Help you continue to grow.
Help you feel good!
Most high achievers in life set goals, and they tend to follow similar formats.
One common method for sound goal setting?
M - Measurable
A - Achievable
R - Relevant
T - Time Bound
If goals deviate from the above format, there will probably be a breakdown.
An example of a goal:
"I want to begin saving money!"
Good sentiment, but this is NOT a SMART Goal. Not specific enough, and no time orientation for start and end date so you can measure if it was achieved. .
Here's a better goal.
"By the end of my first full year of the Brick by Brick Apprenticeship I want to have saved at least $9,000. I'll use auto payroll withdrawals from my paycheck for at least 35% of my pay and begin to learn about investment options, so I can start investing after I have saved at least $5,000 towards this goal."
This goal is much more tangible, it can be measured, and it's impactful. This goal is also long term enough (at end of one year) where you can break it up into months and know where you should be at the end of each month. Wouldn't it be almost impossible to save $9,000 if by month 8 you have $350 in the bank?
How would you feel you were successful and this (and other goals) were achieved?
Do you think this will happen if you do not have a VERY specific goal in place? Probably not.
Do you think you will have a better chance of achieving this or ANY goal if you know you have to sit with your Mentor and he'll be asking you about?
Accountability to yourself is MOST important, but having a Mentor with high expectations is an additional success factor.
Now, envision yourself achieving the above example goal at the end of year one. If you were successful achieving this at the end of year one, what do you think is possible at the end of year 4?
It is NOT healthy to compare yourself to others......BUT, how many "conventional college" students that have enormous personal debt will graduate with healthy savings? Not many.
One of the areas we will review is COMPOUND returns. ANYBODY that has had experience in investing knows that one of the MOST IMPORTANT factors to building wealth is STARTING EARLY.
Financial planning will be one of the areas we work on in Goal Setting for the Brick by Brick apprenticeship. What does that mean?
1) Setting a savings goal that establishes the RIGHT DISCIPLINE many people take decades to understand. Every paycheck, auto withdrawn in a way that will create tremendous results down the road.
2) Reviewing your progress at your monthly accountability meetings.
3) Learning about various investments after the basics of short term reserve funds are established.
Goal setting is about picking your future destination, then breaking it down into bite sized pieces, and executing against that plan.