Many financial goals can be vague. For example, “save for retirement” is a great goal to have, but it doesn’t tell you much about how you plan to get there. To make your goal more specific and visual, create a “secret number” for it.
Money blog Reach Financial Independence suggests attaching a personalised number that symbolises your goal, then keeping that number in sight. The example goal the writer gives is earning enough money to quit his day job. His number is based on three things:
- Monthly income desired from side gigs and passive income
- Number of consecutive months of earning this income before quitting
- Target date
He says his number is 3000-12-16. He wants to earn $3000 a month for 12 consecutive months so he can quit his job by 2016.
Your number will vary depending on your goal, but once you create a set of guidelines and attach some figures to it, you’ll have a visual representation of what you hope to reach, financially. For more detail on this method, check out the full post.