Okay, what I’m going to tell you may sound crazy but if you want to travel the world for a year you can do it. It’s actually pretty easy if you ask me. I’ve managed to do it several times over. How you may ask? I set some goals and budgeted my finances around achieving them. You may need to a bit of research, reaching certain goals may take longer than others, but I think most things are possible if you set your mind to them. Let me share with you 7 simple steps:
1. Define Your Personal and Financial Goals
Get out a piece of paper or open up Microsoft Word and start brainstorming about what goal it is that you want to achieve. Once you pinpoint exactly what it is you want to achieve it’s going to be much easier to work towards it.
2. Create a Budget and Get Organized
Assuming your goal is something that’s going to cost money, you’ll need to set up a budget.
3. Start Tracking Your Expenses
In order to get that budget going mentioned in step 2 it’s necessary to understand where your money is going every month. If you haven’t ever tracked your expenses then you’re surely going to find something that surprises you.
4. Adjust Your spending
Make money by spending smarter. Are you spending $100+ at the bar every weekend? Cutting that expense out could land you on a beach in Mexico for a week. You could rent an apartment somewhere in Thailand for a month. What do you really want to do with that $400?
5. Pay Off Debt
I know I mentioned visiting Mexico with that “spare” $400 but if you have debt then you should be working towards paying it off.
6. Set Milestones
These are targets you need to be hitting in order to achieve your goal. If you find yourself missing one of these milestones you may need to reassess and adjust your strategy.
Now, let me clarify that this last part really depends on your goal. If your goal is something more short term “investing” towards this goal may be dropping said funds into as savings account so you don’t spend them. A 401k or Roth IRA might be what you’re looking at if you’re thinking along the lines of retirement. Perhaps you’ll want to invest in real estate. Maybe you even want to start learning about trading in the stock market or jump on the cryptocurrency band wagon. Either way, long term, I think finding a way to grow your savings is better than stashing them under your bed.
The Roman philosopher Seneca once said, “luck is what happens when preparation meets opportunity”.
It reminds us that the difference between lucky and unlucky is all in our perspective. We create our own luck as we prepare ourselves for the opportunities we want to take. With these 7 steps you’re actively choosing that opportunity and preparing yourself for it.