Up to this point, our articles have focused on your
current financial situation, on knowing from where you
are starting. Now we are going to take you to the other
extreme – where you want to end up. Where you are
going is almost as important as your starting point. It
gives you a destination, a target, a place on which to set
your sights. If you think about a successful business,
you can be very sure that behind the scenes there is a
successful business plan, one that was put in place when
the organization was born and one that is centered on a
Vision. The company will have laid out in this business
plan where they want to be in 1 year, 3 years, 5 years.
They will know what their ultimate goal is in very
specific terms. They won’t just say they want to be the
best. They will say that their goal is to be at the top of
the Fortune 500 list in 5 years.
Think of your financial life as a road trip. You know
from where you are starting – New York. You know
where you want to go – sunny Miami. Now that you
have your starting point and your destination, you can
plan how you will get there. You can plan it in stages
and you can even stop to see some of the sights along
the way. You can travel as quickly as possible or you
can take the scenic route. This is the same as your
financial journey. In the past few issues, we have
helped you determine your starting point and now we
will help you figure out your destination or your Vision.
Then you will have what it takes to make your plan.
How do you decide on what your Vision is? It is a very
personal thing and it may involve only you or it may
involve your family as well. The one thing that must be
made very clear right form the beginning is that a Vision
is not the same thing as a dream. A dream is a
someday thing. A Vision needs to be detailed,
measurable, achievable, compelling, and timetabled.
The difference between a Vision and a dream is: I will be
a wealthy actor someday vs. I will have a recurring role
in a quality prime time drama and an annual income of
$200K by Jun15th, 2009. This is a target and while it is
not carved in stone (after all sometimes our Visions
change) it is something you can then work backward
from to see that you hit the target.
An important exercise we suggest our clients complete is
the “3 Year Vision” exercise. Begin by asking yourself a
few simple questions: How much will you be making
monthly? What kind of car will you be driving? Where
will you be living? What artistic endeavors will you be
pursuing? Have fun with this exercise and be incredibly
specific. When you read your vision you should feel
happy – you should feel a sense of excitement and joy as
you paint a vivid picture of where you want your life to
be.
Once you are clear about where you want to be, you can
then break this journey down into smaller steps. For
example, when creating the Vision and plan for your
income it is not enough to say, “I want to make a lot of
money.” Think about what you want your monthly
income to be – a specific number. Then break it down
into how much you will need to earn every week and
how much you will need to earn every day to make it
happen. Then you will know how much your current
income falls short and can begin to look for options,
other ways to supplement your income to bring it to the
desired level.
One of the many things we do for our clients is help
them develop ideas and create solid plans for side
businesses that will allow them to reach their income
goals even if their artistic careers take longer to reach
the desired profit levels.
Writing down your Vision and your plan, which is your
journey broken down into manageable pieces, will play a
huge role in whether or not you reach your destination.
Do not underestimate the importance of writing down
and fully visualizing the goal. Study after study has
proven that people who write down their goals reach
them significantly more consistently than those who do
not. Set yourself up for success right from the beginning
by doing a simple writing exercise that is both fun and
practical. Then you will be able to draw your own road
map to get from point A to point B and you will reap the
benefits of careful planning and hard work.
