When you get started on the $1000 Project, the first thing to do is to set your goals. I believe this is the most valuable stage of the process. Learning how to design and set powerful and meaningful goals will put you on the path to success and give you something to feel proud of and excited about.

WHY GOAL-SETTING IS SO IMPORTANT

The common denominator with all high achievers is this: they set goals. They aren’t complacent, but are always aiming for something better and more rewarding. They have both short-term and long-term goals and the goals are in sync with each other, heading in a positive direction.

When you set meaningful goals – and I mean meaningful to you – there is a shift within you. You gain a crystal-clear picture of what you want to achieve, and this drives you. It becomes your purpose, your mission and your vision for the future. So the key at this point is to find out what will spark that excitement within you.

When you’re truly committed to your goals, something clicks, and this is when ideas and opportunities open up. You find yourself making different, better decisions, to help turn that picture in your head into a reality.

One of the best things about creating and setting goals is that it gives you insight into what you really value and what makes you happy. It provides a purpose and a target to focus on. And this enables you to channel your energy in positive and constructive directions rather than simply drifting through.

FINDING YOUR VALUES

Understanding the essence of what you dream about, love and value helps you create powerful goals that will work for you, and this will make them easier, more enjoyable and more efficient to achieve. The first step is to understand the difference between society’s goals and your goals, because that picture you create must be original and specific to you.

For example, if I set a goal for myself to go to the gym five times a week because I think this is what I should do, I’d quickly lose interest, come up with excuses and cut down on my routine. But if I can understand and really keep my focus on something meaningful to me – such as having more energy, feeling fitter, feeling more confident in a swimsuit, seeing my skin and hair glowing, or sleeping better – then I’m going to be a lot more motivated and committed.

And if I get sick, I’ll find it easier to be eager and enthusiastic about heading back to the gym the moment I’m well again, and I’ll even be excited to rebuild any fitness I might have lost. Having the focus on personal values mean that, when distractions and setbacks happen, they don’t stop you dead in your tracks. If you’re motivated and focused, it’s easier to pick yourself up, brush yourself off, check in with yourself and then refocus on the values you’re passionate about and get back on track again, with your eyes on the prize.

Often, when I first meet with clients to discuss their financial plans, they tell me that one of their goals is to buy a house.

Which, of course, is an admirable goal to have. But sometimes when I ask why they want to buy a home, they struggle to answer clearly. They’ll say, ‘It’s time,’ or, ‘I should,’ or, ‘It’s the logical thing to do.’ As we explore further, it often becomes clear that the goal of buying a home isn’t really that important to them: rather, it’s something that society has told them they should aim for.

If you don’t have a strong, connected desire to save up for a home, it won’t be something that you pursue with much commitment, determination or passion. And then, even if you achieve that goal, you’re unlikely to get that euphoric feeling of accomplishment.

As you set your goals, then, it’s important to work out what you really want, and why you want it. Throw out all you’ve been told about what you should have in order to be happy, and start from this point: what makes your spirit glow with joy and excitement?

For some of you, this will be super easy, especially if you’re a daydreamer! Your dreams and fantasies can tell you a lot about yourself and what you like, value and want to attract into your life. For others, the answers may not flow initially. That’s perfectly normal – and often, in fact, the bigger the block, the bigger the backlog of incredible ideas and inspiration that will pour out once you pull the plug.

To initiate this self-discovery and awakening process, which is the important first step in defining your goals, you need to have a conversation with yourself. Start by asking yourself these questions:

What do you love doing?

What do you dream about?

What would make you feel better?

In the answers to these three questions are your nuggets of gold. And when setbacks happen (as they almost inevitably will), reminding yourself of the values behind your goals is what will give you the strength, passion and dedication to pick yourself up and keep going.

UNDERSTANDING AND OWNING YOUR GOALS

Here are some financial goals from people I know:

Notice something about this list of goals? They’re not actually about wealth and money. These people are looking for strong values in their lives – not dollars. Of course they’ll need money to help create these scenarios – but if you look at what they want and personally value, it’s freedom, security, peace of mind, comfort, adventure, discoveries and generosity.

When you set your goals, take your time and make sure they’re your goals, and that you understand the value behind them.

If your goal is to buy a house, ask yourself: what would having the house bring you? Security knowing that it belongs to you? Pride knowing that you saved for it? Comfort knowing that you’re safe there and can’t be moved on? Freedom knowing that it’s yours and you can style and decorate it as you wish?

If your goal is to pay off your debts, ask yourself: are you chasing the freedom of knowing that you’re debt-free and have no financial responsibility to anyone? Is it the peace of mind of knowing that every dollar you make can be kept for yourself rather than having to use it to pay for things that you’ve already used or done? Is it the control and responsibility of knowing that you’re doing the right thing to prioritise your financial future?

There are no right or wrong answers to these questions: these are your values. You should never second-guess or undermine your values, as understanding them is what will drive you to success.

As mentioned in chapter one, my goal for the $1000 Project was to build a diversified investment portfolio of shares which would produce a passive income of $2000 p.a. My vision was to inspire and educate people to use this way of creating and saving money to help take the financial pressure off their lives.

But, speaking more personally, my ultimate goal is to create a life with no mortgage, a large, diversified investment and superannuation portfolio, and a passive income that covers my living expenses and lifestyle and also allows me to give to the community, charities and people who need a helping hand.

My big picture is to be able to take my family on international holidays every year and travel throughout my own country. I want my family to explore the world together, to see us bonding and working as a team. I want to set a great example and be a role model for my children for when they have their own families. I want to be able to afford healthy and high-quality food, to pay for the education that my children need and want, and of course to know that I can be there for them when they need me and can always help them to the best of my ability. These are the values behind my goal, and this picture is crystal-clear in my mind as I consciously put in place the necessary actions to help get me there.

HOW TO MAKE YOUR GOALS WORK FOR YOU

STEP 1: WRITE THEM DOWN

As soon as you know your ‘what’ (your goals) and your ‘why’ (your values), you need to write these down. When I do this, I use pen and paper, because that physical connection from my brain to my hand to the pen to the paper inspires a level of creativity and commitment in me. However, you might find it easier writing on your phone, tablet, laptop or desktop – whatever works best for you is fine, as long as it enables you to take ownership of these goals. Also, make sure that you can easily access these written goals, so that you can read them twice a day, morning and night.

One of the most powerful times to read your goals is first thing in the morning when you wake up. It sets your mind on a positive note as you start the day and helps to build your self-confidence. This is also when new, fresh ideas emerge and brainstorming is most effective, which will give you helpful solutions for turning your goals into reality.

Reading your goals before you fall asleep is equally valuable, as you plant powerful instructions into your subconscious mind. This is how you can give your mind permission to come up with creative ideas and solutions to frustrating obstacles and blocks while you sleep.

And if you’re really motivated, studies have shown that reading your goals before you jump in the shower (or even while you’re in the shower) is a great way to trigger new ideas and strategies, because your brain is most relaxed, present and open when you’re in the shower. Personally, this is where many of my ideas have been born.

STEP 2: WATCH YOUR LANGUAGE

Your goals need to be specific and to have deadlines. Don’t just have a goal to ‘clear credit card debt’ – the more information, the better. How much do you need to pay off? Who do you owe the money to? What’s the specific date you want to achieve this by?

Your goal would then be written like this: ‘Pay off $9000 Visa credit card debt by December 2018.’

Notice the language? First of all, the goal is written as an instruction, so you know you must follow this path without deviation. Secondly, the exact amount you owe and the date by which you want to have it paid off is specified. When you set a goal with a target of ‘in three months’ time’, you often keep pushing the deadline into the future by three months, and it rarely actually gets done. But when you have specific deadline, you’re far more accountable and you feel and see the need to put the work in as the date looms.

At all costs, avoid using the words ‘no’, ‘not’ and ‘don’t’! If you have a goal to stop spending money through your credit card, it needs to be solution-based and written in a positive light. For example, your goal could be to ‘pay for expenses with cash or debit card only’.

STEP 3: SORT OUT YOUR PRIORITIES

When you work out your goals, they need to be short-term (i.e. to be achieved within twelve months) and then long-term (i.e. to be achieved in the next ten years). You can set medium-term goals as well, but I’ve found that as you achieve the short-term goals and keep your focus on the long-term goal, the medium-term goals naturally sprout up on the path towards to the long-term destination.

And two things are essential: your goals must be in sync with each other and you must have your priorities clear. Simultaneous short-term goals to pay off a large credit card debt and to go on a big holiday may work against each other, so you’ll need to prioritise one over the other. You have to work on your goals in an efficient manner so that you can keep progressing.

In this case, your goal could be to save up parcels of money to pay off the credit card first and then, once it’s paid off completely, you could keep the saving habit up to pay for your holiday. If you really feel the burning desire to have the sensation of working on the second goal, so that it feels real and like you are taking it seriously, then you could open a dedicated saving account for your holiday. That way you don’t feel like you’re completely neglecting the goal of saving for a holiday, and you’ve acknowledged and respected the upcoming action required for that goal, while prioritising the debt-reduction goal first.

STEP 4: KEEP YOURSELF ON TRACK

Once you’ve written down your goals in the most direct and positive manner, you need to read and review them as often as possible. If you constantly remind yourself of your mission and direction, it will help you to make conscious decisions and to take actions that are aligned to the success of your goals, while reducing or eliminating distractions.

For example, say you set a goal to save a deposit of $50 000 for the purchase of your first home. You may catch yourself in situations that are detrimental to your goal, such as walking around a shopping mall, considering buying items that you don’t actually need. But because you’re in tune with your goal, you’ll be able to quickly identify this negative action and stop or change it.

STEP 5: GET THROUGH THE TRICKY TIMES

No great goal was ever achieved easily – life is full of temptation, bad luck, accidents and failures. And no one can completely prevent these things from happening. But what will keep you on track to success is the way you handle challenging situations, and your overall attitude.

When tough times happen, you have to try to see the positive, to see that you’ll come out wiser, stronger and deeper. Look for the wisdom and lessons in those moments. Grow through the pain, and understand the message, and what you need to learn to become wiser and stronger.

Then come back to your goals, review them, and remind yourself of your values and why they’re important to you. Look at what’s working and try to make it work even better. See if your goals need to be adjusted so that they feel more realistic. If you need to, break the goals down into even smaller, more manageable goals. Just make sure you’re still progressing and heading in the right direction – and feeling good about yourself!

Of course, your values will naturally change as you evolve through life. Always be aware of your values as well as any shifts or changes in your value system, so that you can change your goals accordingly.

As my life has evolved with changes in circumstances – having my son, changes in health – my value system changed.

I felt a new awareness within myself of something new that I’d discovered, or that I’d always appreciated but now did so on a deeper level.

You’ll know when this happens because when you look at your goals, it will feel like something needs to be added or adjusted for a snugger fit to your unique goals and situation. This is perfectly natural, and in my opinion an incredibly powerful and positive sign, as it shows that you’re gaining a deeper insight into and connection with yourself and your amazing capabilities.

So, if you feel in your gut that something needs to be tweaked, don’t be afraid to give your goals a little facelift. This will help keep you on track and heading for success. Update your goals by rewriting them, add in more detail from your discovery and continue to read them and put the right actions behind them everyday.

STEP 6: SHORT-TERM AND LONG-TERM GOALS

As I shared with you, I have a long-term ‘big picture’ goal, which stemmed originally from a dream. To help get me to my final destination, all my short-term goals are aligned to that final point. So as I accomplish the short-term goals, the success of the long-term goal is almost organic.

For example, say my long-term goal is to build a passive income of $300 000 p.a. All my short-term goals are mini versions of this big goal. This helps me keep pushing myself in the right direction. Always ask yourself, ‘What do I need to do to get there?’ Each action taken should be positively contributing to achieving your very personal and passionate goal.

The long-term goal for the $1000 Project is for me to eventually make passive income equivalent to the average salary, which is around $75 000 p.a.. However, for each year – as in, my short-term goal – the goal is much smaller, but as each small goal is achieved, it is positively aligned to my long-term dream. I know that if I remain committed to the actions that will achieve the yearly goal, my likelihood of success with the long-term goal is significantly higher.

As you achieve the short-term goals, new ones must be added so that you never fall into the trap of drifting through life or feeling complacent. And always aim for something higher, so that you experience growth beyond the financial side.

Remember, high achievers have goals and success breeds more success, and sometimes it is even contagious, if you’re open to it.