We found this article by Remit Sethi and thought we would share a portion for all of you millionaires in the making . . .
THINK BIG. If you tell me your dream is to stay at a Best Western in New Jersey, I am going to unsubscribe you from my email list.
When you’re brainstorming, think big. You can always cut down later. But for now, think big.
After you come up with something — “I want to go to Paris!”, get specific.
When I used to say, “Yeah! I want to travel,” I never did. There was no specificity, no urgency. It was a dream easily deferred.
Pick a date so you can start breaking it down. Notice how reluctant we are to set dates and specifics because, gasp, what if we fail? I would rather have you try and fail than never try at all.
How much will it cost? Really map it out. This doesn’t have to be exact, but you should know if you want a $4,000 trip to the beach or a $20,000 trip around the world.
Here’s an example.
BAD: “I want to go to Paris some day”
GOOD: “By December, I want to go Paris for a week with my significant other. I also need to find a significant other, but that’s another story”
Flight for 2: $1,600
Fun money: $1,000
(If you’re not sure where to find these numbers try here and here. Just approximate and add 20% if you’re not sure.)
OMG! THAT’S SO MUCH MONEY! RAMIT WE DON’T ALL SLEEP ON A BED OF $100 BILLS LIKE YOU.
Ok, this is where my training in breaking down big problems comes in handy. That’s a big number, but if you break it down, it’s absolutely achievable.
Let’s break it down even further and I’ll show you what I mean.
$6,000 = $500 x 12
One of the principles I realized when I earned my first dollar as a consultant was, if I can make $1, that means I can make $10…and if I can make $10, I can make $100. And on and on.
So — if you can earn $500 once, you can do it 12 times. And you’ve paid for your dream romantic getaway to Paris.
Let’s keep breaking it down.
How long would it take to earn $500? Let’s do the math.
You have a lot of options. You could:
Save all your change in a jar by the washing machine. At .50/day, it will only take you 2.7 years to earn $500. Which means your Paris trip is a mere 33 years away. Love you, frugalistas
Cut out your morning latte 5 days/week. If you remember to put that money aside, you’ll have $780/year and have a Paris getaway in a little less than 8 years. Except you won’t be reading my emails any more since you’ll have moved to a shanty town in South Dakota and ceased the usage of electricity. Nice knowing you.
Take $100 out of each of your paychecks. At biweekly pay, you’ll have enough in just over 2 years. This is reasonable and it adds up way faster than you think — especially when it’s automatic. (Btw, when people say, “I’ve already cut to the bone…there’s nothing more I can cut” these are the very same people who have never automated their savings. They don’t know what they’re talking about.)
We’re going to break it down further, because there’s another, even quicker option that doesn’t require cutting back. You can use the skills you already have to earn money on the side. And you don’t need that much time.
Look: To earn $500 you could…
Work 10 hours and charge $50/hr
Work 5 hours and charge $100/hr
In other words, with just 5-10 hours of work per month — that’s only 1½ – 2½ hours per week — you’ll have your Paris trip in a year or less.
You can also think about it in terms of clients.
20 one-time clients paying a $300 project
Even better: 6 one-time clients for a $1,000 project
Best: 2 recurring clients for 6 months at $500/month
Notice how much easier this is. 6 clients? I can do that.
(Read the entire article on I Will Teach You To Be Rich)