Step 3. Know Where You’re Going.
Before you can figure out how you’ll get there and how long it will take, you need to know where you’re trying to go.
What are your financial goals?
I suggest sitting down with a pencil and paper and defining financial goals for the following time horizons:
- 1 year – What do we need to do this year?
- 5 years – What would it look like to be financially secure in 5 years?
- 10 years – What could we do if we were financially independent?
- 20-30 years – What is our dream retirement situation?
- 40 years – How can we leave a legacy for the next generation?
If you are married, this is a great time to listen to each other and dream together. You might be surprised at how this one exercise of dreaming your preferred future together can bring new life and intimacy into your marriage. After all, isn’t this what you used to do when you were dating?