Setting goals

Before we move on to how different goals are defined and achieved, let's talk about your definition of "wealth" and your relationship to money. You won't be surprised if I tell you that when most people hear the word "Rich" they imagine a person who earns a high income, invests in real estate, can afford a private school for his kids. Sure, there may be exceptions, but they only confirm the rule.

What money can NOT buy

Remember for a moment the important things in your life. Do they include the times you bought a car or found that designer jacket at half price? Most likely no. Then the only thing you have left is to trust the saying "The most valuable things in the world are not bought with money." It's unfortunate that most people don't agree with this wisdom. They think that more money will make them happier because they will be able to travel more often, go to restaurants or buy a new car. There is a lot of people who can afford these things, but not all of them are happy. Even studies show that there is a weak relationship between money and happiness.

The Balance

Believe it or not, there are people who save too much. What does too much mean? Well, so much that saving has become the main meaning of their life. They save on everything - they do not heat in winter so they don't pay high bills, they buy the cheapest food, they don't go to the cinema, they deprive their children and all in the name of "White money for rainy days". They don't even have a goal (early retirement, education for the kids, or any other meaningful goal).

In addition to saving and spending, there should be a balance between making money and having a personal life. To earn more money that will make you happy or to provide for your family. Take your time with the family and friends. The life is not money.

At the other pole are the people who live for the moment as if tomorrow will never come. This is inherent in students and young people in general, as well as some not so young people who have "missed" something and then catch up. But, usually, tomorrow comes and these people find themselves unprepared for it and the consequences can be severe because the only difference between people with no savings and the homeless is a few months without income.

The Goals

Most people do not have clear goals and plans on how to achieve them, but rather desires. The difference is in the planning. I will give you a few examples of meaningful goals.

Hause

Everyone wants to buy a house, especially young families. Usually it is possible to buy a house with a loan - 20, 30 years. Taking so much money from the bank requires some planning - the mortgage should not be more than 30% of your net income. You need to plan what will happen if your income falls, or the economy goes into recession, or inflation rises.

Education for you and the children

Education is usually not cheap. You have to plan very well for your education and later for your children. Jumping from job to job, career to career and trying to be prepared is a waste of time and money. Do not save money for education, just plan and choose the right one.

Own business

This, in my opinion, is a natural step in everyone's life. Many of us want to face the challenge of being our own boss. The main reason for many people not to achieve this goal is the lack of enough money, fear to leave their main job. The other thing that scares them is the reduction of their income in the first years of starting the business. This is very natural, all you need is a good plan and of course a plan B (what if the business idea fails).

Retirement

Unfortunately, not all people think about their pensions. When the times come it is too late to react. That is why you should think about your retirement, while you are young and still can change your future. Saving money and taking out additional insurance is the conservative and easiest way. Another way is to put your faith in yourself and take care of your retirement by starting to invest and trade.