If you never have goals or any dreams you will never accomplish anything in life. It is essential to set goals and always dream big. If you do not dream, you will never be anything more than you are now. You will never reach your full potential in life.
We all have goals and dreams, but most people do not recognize their goals or even strive to fulfill their goals.
So first, I want you to sit down what you want to accomplish in real estate. Dream big and write as many things that come to mind. Think as if there were no limits to what you can accomplish. Then once you are done writing all of your dreams in real estate move on to the next section.
(You can do these exercises on a piece of paper or CLICK HERE for a worksheet to fill out while reading this article.)
Now that you have your dreams written down, it is time to learn how to set a goal. Not all goals have to be “SMART” goals but it is a good way to understand all the components that should be in a goal. Your goals can be in the form of a check list or a goal you just have in your head but sometimes it is good to sit down and really think about your goal.
SMART is an acronym as seen below. By making sure your goal fits each category you will achieve better results versus if you had a generic goal that was not specific.
SMART Goals:
S – Specific – What exactly do you want to accomplish?
M– Measurable – How are you going to measure it?
A– Achievable – How will you achieve your goal?
R-Realistic – Is your goal realistic? However, do not be afraid to create a goal just a little bit out of reach.
T– Time – When will you complete this goal? What is the time frame?
Examples:
- I want to save $1,000 each month out of my paycheck.
- I want to buy an investment property by the end of the year.
- I want to connect with a realtor and lender by the end of this month.
Short-Term Goals
It is important to set both short term and long term goals. Short-term goals are especially important because this is where you are going to see your progress as a real estate investor. If you only set long term goals you will always feel as if you are not moving towards your goal and you may quit.
Short-term goals are typically goals that you can achieve in a short amount of time, no longer than a year. It is important to have short term goals because they act as little victories on the way to your long term goals. Short term goals will keep you motivated and you are more likely to be successful if you set short-term goals.
Keep in mind that just because you want to be a real estate investor does not mean all your goals need to include real estate. Goals that include saving money, learning about real estate, and working on your skills are all very good starting points.
When setting a short-term goal really think about the small things you need to do to get started.
Examples:
1. If you need to save money, then make a goal for that.
2. If you have money saved up and you want to find a place, then make a goal to connect with a real estate agent and the lender you trust.
3. If you have a couple of properties but want to expand in your real estate then make a goal to talk to some lenders to see how you can make it happen.
When I started out my first goal was to save $2,000 a month. So each month I had a little victory. Soon 6 months later I had $12,000 saved and was able to start my real estate journey. After I bought the fixer-upper, I made a checklist of everything I had to do for the property. Sometimes it felt like the list grew longer but each time I got to check a box, I felt that much more motivated.
You do not always have to write your goals down, using a checklist on your phone is sometimes just as valuable. Make sure to give yourself credit for the small things because you deserve it.
Long-Term Goals
Long-term goals are so much fun and exciting to create. These are the goals that may just change your entire life. When you create long-term goals they should have a time limit. If you do not have a time limit then you will push that goal back throughout your life. A lot of times when you set a long-term goal you will accomplish it way before the end of the timeline you set.
Each long-term goal should consist of at least 5 short-term goals. You should be able to think of at least 5 baby steps to getting to your long-term goal.
My big long-term goal was to create $3,000 monthly passive income from real estate in 10 years so I could retire from teaching. At the time my NET teacher income was $3,000 so I felt that would be an adequate amount to live off of and I had a 10-year plan of how I was going to do it. I had my long-term goal to retire with $3,000 monthly income. Then each year I had short-term goals, which were essentially a step-by-step plan of how I was going to create that passive income.
I just retired after 4 years of teaching and I have $15,000 monthly passive income coming in each month. I destroyed my goal but if I hadn’t set that goal I may not have pushed myself as hard at each step.
It is important to understand that long-term goals are a ways away and a lot can change in the timeframe. It is always okay to alter your long-term goal. You may need to add or take away short-term goals and that is okay. I completely changed 80% of my short-term goals in my 10-year plan and it worked out.
Try and evaluate your goals often and make sure you do not need to make any changes.
Now it is time to apply what you have learned to yourself and your own journey. You can do this on your own piece of paper or use this link to create your goals.
