Why You Need to Know Where You're Going Before You Make a Map

Maps are useful

It’s hard to get to where you want to go without a map.

I was reminded of that lesson this week when I found myself driving from Austin to Ft. Worth in the middle of the nationwide AT&T cell phone outage.

It took me about three minutes after leaving my house to realize that I was going to be completely S.O.L. if service didn’t come back online within about 2 hours; because while I could get to Ft. Worth by just taking one highway, I had no clue where I’d be going once I was in the city with no phone and no maps…

And while it’s hard to get to where you want to go without a map or directions, what’s even harder is navigating without knowing where you want to go.

Know thyself

The Greek philosopher Socrates said:

Well… almost.

He actually said “To know thyself is the beginning of wisdom.” But, same same.

His proverb holds true in most areas of life, and certainly when it comes to having a financial plan. Before you can develop a plan for your path forward, you have to decide where you want to end up. 

It’s essential to start with the end in mind. Otherwise, you can end up building a plan that takes you a destination that you don’t want to go in the first place.

So, where do you want to go?

I’m a type A person that’s relatively goal oriented. The way I’ve tried to answer this question over the years is by sitting down and writing yearly goals in the following 5 categories:

1. Family & Relationships - What do I want to see for my friends, family & my faith?

2. Health - How do I want to take care of my long-term health better?

3. Travel - Where do I want to go with my wife & friends?

4. Financial - What do I want to earn, give, save, and invest?

5. Business / Career - What milestones do I want our businesses to cross?

I then start writing everything I can think of that feel like a goal or ambition or desire in these categories.

If you do this yourself, it’s important not to censor yourself. Don’t feel guilty about what you write down — just write it. When you’re finished, you’ll have a wide range of desires in each of these categories.

Then, I go and distill down to 2-3 in each category to give me a clear picture of what I want most this year. These are not 12-15 New Year’s Resolutions. Those would almost certainly fail.

Instead, these are 12-15 outcomes that I want to see that will inform how I live my life to see these come to life.

When I look at this list, I have a list that helps me know thyself. It quickly becomes obvious what rises to the top as most important to me when I have everything on one list or sheet of paper.

What are some possible financial goals?

While I hope the categories above are helpful, The Nollege is focused specifically on your financial goals.

In your early 20’s, there’s a massively wide spectrum of financial goals.

You may be hoping to make rent this month, or you might be hoping to put a down payment down on a $300K home.

You might be saving for a wedding, or you might be hoping to pay down the thousands of dollars of credit card debt that you built up when you had no income but lived like you could buy whatever you wanted.

While I don’t know what the answer is, my hope is that you do. So here’s a few ideas of potential ideas that could be your most important financial goal this year:

At the end of this year, the most important financial goal for me is __________

1. To be begin making regular debt payments

2. To have a savings fund for retirement with $1,000 in it

3. To have an emergency fund with $2,500 in it

4. To increase your annual income by $10,000

5. To give 10% of what you make

6. To get out of credit card debt

7. To save enough for a down payment on your first home

8. To earn enough to be able to move out from home

9. To be completely debt free

10. Save enough to be able to take a trip

So, Your Turn

Take out your phone. Start a note, and call it “My Financial Plan”.

Each week, I intend to include a question that can help make it personal and let you reflect on what you just read.

Over 6-12 months, you’ll be able to look back and see how you really feel and think about your financial plan and future.

In the 7 categories that make up your financial plan, it’s important to start with self-awareness. From there, we’ll build the other fundamental pillars that will hold up your financial future in a way you can be confident & secure in:

1. Self-awareness & goal creation

2. Earning & increasing your income

3. Saving for retirement

4. Managing debt & credit cards

5. Budgeting & expense management

6. Investing for the long-term

7. The joys of giving & generosity

Feel free to share your goal in the comment section below. Excited to know what is on your heart for this year.

Until next week.

Disclaimer: I am not a certified financial planner. No content in this newsletter or website is intended to inform you on what investments to make or stocks to buy. All financial decision making involves some level of risk. The content in this newsletter is written to give you helpful considerations & habits to make the best financial plan for yourself.

Questions: If you have any questions, feedback, or need anything, please reply back to this email and it will go to my personal inbox.