The Financial Importance Of Goal Setting with Mihir Desai and Jeff Small January 7, 2018
Guests: Mihir Desai and Jeff Small
The Income Generation With David J. Scranton
Our new destinations, places we’ve never been to before and odds are you’ll never get there without some type of map and creating the map begins exactly the same way by punching in your destination and you’re starting point. You’ve already identified your destination and visualized it and thought about it in sensory, specific fashion, the next question now is where am I today? Have you already put aside some savings for this goal or if it’s a trip blocked out the time for it on your calendar? From where you’re starting what are the key things that you need to acquire or accomplish in order to reach this destination? Identify them and write them down, then answer this question what is my timeframe for ideally achieving this goal? Give yourself a target date for the goal, don’t just say this year or by the end of the year or sometime soon, pin it down, once you’ve identified this starting point and the end target date. Now, ask yourself this important question please be brutally honest with the answer, is my goal realistic? There’s nothing wrong with having ambitious goals but if you determine that your goal will require you to raise a million dollars or become a piano virtuoso within the next six months. It’s probably not that realistic and there’s at least one more important question you should ask when mapping these goals, which is, who can help me? That can mean help in the form of moral support, coaching, teaching or yes financial planning for that matter, and again the reason I feel so strongly about this topic is that there is a financial component to virtually every goal. Sometimes it can be the most important component and if you are not mathematically inclined or feel like you stand a better chance of reaching your goals with somebody professional guiding you. Then go ahead and get that professional help, reach out to a qualified financial adviser, set up a meeting once you have your map and you programmed yourself both consciously and unconsciously to reach your destination. Now, at least you’re heading in the right direction, you’re on your way but the question then becomes what if you should take a wrong turn at some point? You know it does happen which is why it’s so important to track your progress toward these goals along the way. You know we already talked about the importance of revisiting your goals mentally every day to make sure that your brain stays on the right channel. In addition, to the mental benefit, this is also a good practice because it reminds you continually as you track your progress continually of what those goals are and why you’re doing what you’re doing to work toward them. Strategically, financially the question becomes are you moving in the right direction? Are you on track to achieve your goal within the timeframe that you’ve set? If not then what steps can you take to get back on track? Can your coach, can your mentor, can your life partner, could your financial adviser help? Now let’s bring in Mihir Desai, he’s a Harvard professor and an award-winning teacher at the Harvard Business School and Harvard Law School, he teaches finance, tax law, and entrepreneurship. His latest book The Wisdom of finance takes the very complex world of finance and using literature explains many of the more complicated aspects of finance in a readable, relatable way.
**Disclaimer: Sound Income Strategies, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance is not an indication of future results. Be sure to first consult with a qualified financial advisor or tax professional about your specific financial situation before implementing any strategy discussed herein.