We often dream of the life we want, and go as far, as to set the goals and make plans. What helps to bring these goals to life is visualisation, research and planning. Another good way to bring your goals to life is to actually model that dream life in your budget.
To do this you will need to have an existing paper budget or excel budget. If you have The Financielle Excel Budget Planner and Goal Tracker - you could save it as a new document and work in that format and call it your Model Life Budget.
Now, reflect on your goals and what are they? They could be:
- Mortgage freedom
- Second home in the country
- Debt Freedom
- Investing 50% of your income
- Dream salary / business income
- £10k/year of holidays
All these goals have numbers connected to them, so with the Model Life Budget, we're going to adjust the numbers to incorporate your goals and model what your budget would be like.
For example, if your goal is to be mortgage free - adjust your Model Life Budget by removing the mortgage cost. How does that make you feel? What does that do to your Excess money every month? Where would you re-divert those mortgage funds to if you didn't have to pay them anymore? How does it make you feel to have lower outgoings, less pressure to earn or rely on income for your basic needs?
Another example is investing 50% of your income. If that is your goal, how do the numbers work? Could you cut your budget by 50% at the moment to leave an excess of 50%? What changes would you need to make? What is stopping you from hitting that goal now? Is it that your income really isn't high enough yet to save and invest 50%? If so, what could you do about that to bring you closer to your goal?
This exercise is a really good way to bring those dream life goals closer. I've done this for years and it's always helped to motivate me and increase the pace at which I achieve what I want to.