There is a goal setting formula that a mentor of mine shared with me to plan and set my targets for the next month, three months, six months and the year ahead.
A simplified version of the formula is the following:
Mental Capital x Relationship Capital = Financial Capital
Financial Capital is then converted into Cashflow and Passive Income.
To set your targets, we need to use this formula and work backwards.
The first step is to set your monthly cash flow target, let say it’s $10,000 which will be $120,000 per year.
We then have to look at what return you can consistently generate on a particular investment vehicle.
Let’s say for the purposes of this example, you can generate a 12% consistently in turnkey real estate and or mobile home parks.
We then do the math and determine that you will need $1,000,000 of capital invested at 12% to hit your cash flow target of $120,000 per year.
Then we do the MILLIONAIRE MATH! How will we make the million dollars? How many people do we need to help to get a million dollars?
It’s very important to then look at what relationship capital we need to develop in order to execute on the tactics we outlined doing the millionaire math in our business and career.
Tim Ferris talks about a “Tribe OF Mentors” he learns from. Have you identified people that have already achieved which you are setting out to achieve that you can study as a mentor? Who will be the top 5 people that you will study and try to emulate in 2018?
What strategic partnerships do you need to create with other companies and or even competitors to help you achieve your financial capital needs? Remember in the Information Age economy, collaboration trumps competition!
What events do you need to attend to find people and companies that are also trying to crush it in 2018? The 10X GrowthCon in Las Vegas is, for instance, the ideal place to find like-minded people that are trying to be the best version of themselves and take themselves and their companies to the next level.
What masterminds and networks do you need to join to connect with the right people?
What does your team look like? What relationships do you need to create to find people to help you grow your company?
Finally, you need to look at your metal capital because you are your greatest and biggest asset and the best investment you will ever make is in yourself and your personal growth.
What problems do you want to solve in 2018? How big are they? The bigger the problems that you want to solve, the bigger the opportunity.
To solve massive problems, you need to identify the high-income skill set that you need to acquire to be able to provide value for people by solving the problem and creating the outcome for them.
What training do you need to skill up? Do you need a coach and or accountability partner?
What knowledge do you need to acquire in 2018? What books do you need to read? How often do you need to read? What seminars and courses do you need to complete?
Have you created a budget for your personal development?
The simple formula is a great outline I personally use and have shared with my clients in how to set specific targets to go after.
Mental Capital x Relationship Capital = Financial Capital – Convert into Cashflow
Go and Crush Your Goals In 2018!
Live a Life of Passion & Purpose on YOUR TERMS
M.C. Laubscher is the President and Chief Wealth Strategist of Valhalla Wealth Financial and host of the popular business, investing and financial podcast, the Cashflow Ninja podcast.
You Can Access His Wealth Building Masterclass here: https://www.yourownbankingsystem.com/squeeze-page17528589