money making vision

What’s your money making vision?

Have you created a long-term money making vision for yourself, and your family? Here's how to do it.

1764 0

There’s no room for fanciful thinking when it comes to creating your financial future because if you really want to build wealth, you need a stedfast money making vision.

This is not a fleeting, fluctuating vision, but it’s a considered, long-term vision bolstered by a plan of action. I call it a magna vision.

Magna is the Latin word for “big”. A magna vision is a vision for your whole life: who you want to be, what you want to accomplish, what you want to have, what you need to experience. It’s not a five-year or 10-year plan. It’s a life plan.

What’s your money making vision?

Take the time to work out precisely what your vision is.

Be as detailed as possible. What does retiring “well” mean?

When will you retire? How many years do you expect to live after you retire? What will your expenses be?

Exactly how much money will you need each week to maintain the lifestyle you want? How much will you need to save to be able to send your children to university?

Your magna vision does not belong to you alone. It affects your partner and your family. You need to get the input and support of the people you love most for it to work.

Make self-funded retirement a reality

Your magna vision allows you to be in full control of your financial future.

Becoming self-funded at retirement is a magna vision. It means you have made the decision to retire without relying on the pension.

It’s a vision that makes sense on many levels: most people would struggle to live on the pension. If you don’t know that’s about $22,721 per year for a single and $34,252 per year for a couple.

Also, the pension in its current form is unsustainable. By the time you reach retirement age, the government’s criteria might have changed and you will be ineligible, or it might not exist at all.

So, how can you start working towards a magna vision of self-funded retirement? You need to consider:

1.     Society’s needs: What difference do you want to make as you transition from our 9-5 or 8-6 daily existence? How will you do this?

2.     Your needs: What basic needs and expenses must be met for you to survive? What about other needs – the things that nourish your soul and make life worth living? Do you want to travel and explore the world? How much do you need to put aside for one-off purchases, such as a car and home? Do you want to move when you retire? If so, where?

3.     Your numbers: How much will this kind of lifestyle cost? Do you want to leave some money aside for your children? Do you want to leave any of your capital for your children or grandchildren? Or will you live off your capital and not leave anything for anyone?

The amount of money you will need to have saved for retirement is determined by how much you will need each year to live the lifestyle you want (assuming your home mortgage is paid). For example:

·      $50,000 per year income in retirement = $1.25 million investment

·      $70,000 per year income in retirement = $1.75 million investment

Trust the process

For a magna vision to become a reality, you must focus on the process. Trust that the process will deliver the outcome.

If you are always looking at the outcome, and not all the vital steps in between, you’ll feel overwhelmed. You’ll wander off course and return to old habits. Find meaning and joy in the process, and celebrate all the small victories along the way.

Subscribe to Financy®

Get your Financy fortnightly fix with Financy Rewards, content and more. Plus each quarter you'll receive the latest Financy Women's Index, helping you keep pace with women's financial progress.

In this article