#1 Step Building Your Wealth: Set Your Financial Goals

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Many successful people have a common practice which is to set their own goals.
With the financial goals set,
  1. Will have a target for you to focus.
  2. Motivate you.
  3. Work out specific actions plans and strategies.
This is #1 step and important step in building your wealth.
It will not be easy or it can be very hard to achieve the goals depending on what your goals are, but at least you willing to face it, have the figures, take massive actions and work towards your financial goals with persistent rather than just letting your finance run its course.
List down your financial goals with the exact amount needed (or at least the closest amount) with specific timeline and actions need to be taken.
You can categorize & prioritized to
  1. Short term (1-2 years)
  2. Medium term (3 -5 years)
  3. Long term (> 6 years)


Examples (all figures are just for illustration purpose):
Short term (1-2 years)
  • Clear of credit card debt ($2,000 in 3 months)
    • action: clearing $400/month
  • Save emergency funds ($12,000 in 2 years)
    • action: set up automate account to pay $600/month yourself first
  • Set up investment account (S$5,000 in 1 year)
    • action: putting the year end incentive/bonus, commissions or overtime pay to set up investment account.
Medium term (3 -5 years)
  • Increase the pay yourself first amount from $600 to $1,200/month in 3 years time)
    • action: save up the yearly pay increment of $200/month.
  • To increase monthly income ($10,000/month in 5 years)
    • action: sign up high income skill / relevant certified skill course / doing side hustle.
Long term (> 6 years)
  • Purchase property for rental income ($120,000 down payment in 5 years)
    • action: to generate extra income of $2,000/month from full time job/side hustle/investments.
  • Retirement funds ($2,000,000 in 30 years)
    • action: to have investment $1,700 monthly on 7% interest rate for 20 years.
There are many online calculators that you can google to search for retirement calculator.
Once you had the figures, specific timeline & actions, you can
  • calculate how much monthly income you need to generate.
  • calculate what type of investment you need to invest to have the kind of returns you need.
  • come out with specific action plans on how and what you can do to achieve the financial goals.
  • monitor and adjust whenever is necessary so that you are on the right track towards your financial goals.

So let's start setting our financial goals now.