To achieve your lifestyle goals you need to unlock the magic of compounding returns, Bushy Martin said on the Get Invested podcast.
Bushy explained this in part two of his Living By Design podcast series, helping his listeners define their ‘freedom numbers’ – lifestyle income, nest egg number, breakfree timeline and ultimately their freedom number – as well as the tools required to stay on track and hit those goals.
Here’s an excerpt from the discussion:
Remember that if you just achieve and improve something by 1% per day you will have improved by 356% in a year’s time. This is the magic of compounding returns, which relies on giving yourself daily doses of TLC.
This is another form of giving yourself plenty of Tender Loving Care in the form of combining time, leverage and compounding growth to achieve great things – It’s what Albert Einstein coined as the eighth wonder of the world. This is about creating easy to do, daily happy habits that take you painlessly and progressively towards your ideal lifestyle goals – you’ll be amazed out how much this almost invisibly transforms your life – you wont see the incremental improvements but over time the results are massive.
So this is how we achieve our ideal lifestyle on a daily basis. Every year we just work out our top three goals across the personal, professional and passive investment spheres. For example, my top thrtee goals for last year revolving around my unifying theme of ‘From 1 2 Many’ were:
1. Perform my first singing and piano playing performance on the personal front
2. Publish my book The Freedom Formula & Start this Get Invested Podcast professionally
3. Obtain subdivision and redevelopment approval for one of our passive investment properties
Don’t forget to have a clear goal in your passive investment sphere as this will ultimately fuel and fund your personal and professional freedom needs long term.
If you are just starting out this may just mean that you intend to save $12,000 over the next year by refinancing your home loan and reducing your repayment costs by $1,000 a month (which we achieve easily for a lot of our clients).
You can then accumulate these savings in an offset account via the Automatic Money Management and saver system detailed in my book The Freedom Formula, that goes towards investing in property, shares, index funds, managed funds or other high interest savings vehicles.
All you need to do then is make sure that every day you are doing just three things that will help achieve these annual goals. So, At the very beginning or very end of each day you spend five quick minutes and take your goals page and just write down what your three actions are for the day and how you went against yesterday’s. You can put this in the notes app of your phone or, for example, to achieve my goal of doing my first singing and piano performance, I dedicated a half an hour a day for the last year to playing piano and singing – this happy habit made achieving the goal easy as I just chipped away at it a little every single day.
For additional personal accountability so that you do what you say you are going to do, every week at our team meeting, we all go around the table and confirm how we went achieving the three actions we declared last week and what are the three things we are going to do next week. You could also do this by mentioning them to your partner, or sticking your three things on the fridge and then discussing them over breakfast or dinner once a week.
Then at the end of the year (and every three months if you serious about it) you can review how you went against your goals, what worked, what didn’t, what changed in your internal needs and external conditions, what you learned from it, what needs to change to keep you on track and what will be your 3 P’s Purpose Goals for next year.
For example, my personal and professional goals were achieved and exceeded with my piano performance at Adelaide Airport and the strong support for my book The Freedom Formula and this Get Invested Podcast, but industry changes have delayed commencement on our subdivision redevelopment, so we need to alter our plan of attack on this one.
Also make sure you celebrate your wins so that you are rewarding yourself for achieving your goals – something that you really enjoy and makes it all worth it. I its about enjoying the journey not just waiting for the prize.
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