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Why Your Dreams Matter

Lesson 18 from: How to Retire Early: The Latte Factor

David Bach

Why Your Dreams Matter

Lesson 18 from: How to Retire Early: The Latte Factor

David Bach

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Lesson Info

18. Why Your Dreams Matter

David closes, returning to the point of financial freedom: to live your dreams. He gives advice on different investments to consider depending on your time frame and how to plan a sabbatical. He ends the class with your final coursework: finding your latte factor and putting steps into place to start paying yourself first.

Lesson Info

Why Your Dreams Matter

One lesson Zoe learns again in the lottery factor is that the whole point of money is to help free her toe, live her dreams. Same thing for you. So let's talk about those dreams for a second. What are some things that you think when you think about I want to go do this? What are examples of things you want to say for besides retirement? What do you think about travel? What else was that? Property. What? Into by? Well, see, very specific. I love that. What else? A k A kick decorating classes in Petersburg. So what would that cost? Okay. Great example. I'm so glad you just gave it because you've got a very specific dream. It costs $2000. You know what the dollar amount is? You know what it is? I would literally open an account up. I would label it on the account. In my mind. The cake decorating count ST Petersburg. I have a $2000 goal. I decide. When do I want that to happen by and I'd save daily for so I'd use one of those investment accounts I showed you before and I'd save daily for i...

t. and the question becomes okay. Great. So I'm gonna save daily for these dreams. Now, where I put the money where I put the money for these dreams and I'd use mutual funds, I'd save money automatically. I'd using account like a corns, which is done for you. And then the question becomes, How long is gonna take you to fund that account? And how much do you need? A guaranteed. Because how long you think it would take you to fund $2000? Can you grab Mike, please? Is it a real dream? Yeah, OK, it's one of them. So we have man you want to do in a year? Is it two years? I could do it within a year. Great. So we're going a money market account. You go use like Marcus as an example, and you just put it in a money market account to 1/4 percent. That's where it would go. And since it's not a super expensive dream, that's basically where you put the money. If you said to me, well, I want to go there for six months. I don't want to just take the glass. I want to become an expert Kate Decorating. There's a six month program, and it's to take 20 grand, and it's gonna take me three years to go. Then you would put it into bonds If you said, Well, I've got more than three years to get there, I want to take some risks and you put into stock funds or balance funds longer out in order to take risk, you have to go out longer on the time horizon. Don't be putting money into stocks that you need back in a year or two because eventually the market will go down and your money back is not a good time to get your money back does make sense. Okay, so the last thing I want to talk about is how to plan sabbatical. Zoe Daniels takes a sabbatical in the book. I want to give it all way, but she learns how to take this extended break the way. Is there anybody here who would like to take an extended break? I'm just curious. One to everybody. What is a way honest? How many of you would like to take a break? Um, seems to be something that more and more people raise their hand to you know what? We're all overworked. Let's be honest. Americans air really bad taking breaks. The average American takes five days of vacation time. Now, a year we're not using vacation times that we've earned most was only have two weeks, but we're not even taking two weeks in Europe. They take 6789 weeks happened and wanting to go to Europe. Heroes like people seem little bit happier. You know, there's a reason that people are shooting each other on these foreign countries. They're taking more time off, have less guns, too. But people are stressed out in America, we need more breaks. So the way you get a sabbatical and you pay for it and you create a sabbatical account. Now here's the thing about taking a sabbatical. Even if it's 567 years from now. It's a beautiful thing to say, for if you said you know what, man David's going to Florence, Italy for a year. I want to go Florence, Italy, for six weeks, you tell it could be 10 years from now. You open up in investment account and you start saving for that. You're gonna end up doing it at least having the option to do it right. But I can tell you this. If you don't save for, it's not happening. So I just say this. Your dreams matter the whole reason I wrote the law multiple. I wrote the locket factor to inspire especially young people, all millennials to realize you're richer than you think. But I want baby boomers can read this book to the books about more than money. It's not about giving up your coffee. It's actually about getting clear again on your dreams. What matters most? How do you use money to free yourself to go live your soul given dreams before I close and take questions? I want to give you a tool that I use to help me with clarity. I talked about it with thing we talked about earlier with Chase and very beginning. I have a tool that helps me focus on my dreams. Helps me get a lot done, helps me not listened all the noise. These tools here include my yes now list and then you show you my not now list. So most people have a to do list and how many of you by the way used to do this. Yeah, and fearless are super helpful. I created daily Tillis too. But I have Ah, yes. Now, list sits in front of me every day in my planner on my desk, where I write down the five things that are most important to me not for the day but for the year. How else would do this? Quarterly. So I start my year with These are my top five things for the year. Now. You could do this with dreams. Then I go down to what's my number one thing. So I created five. By the way, I may have 50 things. Then I nearer to five. Then I narrow it toe one. And every day I ask myself, Am I putting time and effort into the number One thing I can tell you that my top five, the number one thing for the last 24 months Well, it's not really joining us. This year has been the lot factor. My number one thing was get the logic factor launched out into the world to teach my goal, have a big on this one. I want to impact a 1,000,000,000 people, so I literally have this mission statement that my dream for the lottery factories to educate and empower one billion people with this message worldwide starting with you, we start with one person at a time. My dream and hope is that this will go out all over the world. Why I did create alive why I'm talking to you one person at a time. There's a lot of things coming at me. The work wise, you have this too. So what I know is in addition to a yes now list, I have to have what's called. Not now list. Now, sometimes I not know this could be much longer than this, but stuff gets thrown at me and I am relentlessly focused on the fact that if it's not in my top five, I may wanna work on it. But I can't right now because I can only do so much so to capture the stuff that I can't do, it goes on a not now list. Now what I wrote here is because great ideas come, but they don't all have to be used now. Write them down, don't lose them, respect them and realize their time may simply be later, but not now. It also means that when people come to me with opportunities don't have to be ruined. Say no, I can say it sounds like a great idea. Unfortunately, I have other things I'm focused on right now. So I appreciate you coming to me with this, but it has to go on my not now list, you know? So it may go Well, how does this apply to me If I'm a foot from my home state home Mom or stayed home? Dad, Warm retired. It applies to you no matter what you dio the number one thing people say. Oh, I'm so busy Busy has become like the new drug, you know, I mean people like I'm so busy. What are you happy being so busy like whenever somebody says, um so musical Is it fun when you say when you say I'm so busy Is it fun? Is it getting you to where you want to go? If I said you have 10 years left to live do you want to really do all these things? If I said you had three years left to live, how much stuff now goes on the not now. List Whole lot. Right. This can also apply socially. You know, it's people come here like Hey, you want to go to this? How do you want to go That? And you know, the formal, right? Fear of missing out or you don't want to be rude. Hey, do you wanna be on this board? Hey, do you want to be involved in charity project? Um you can get involved in so many things that then you have no life. I think the biggest thing missing in many people's lives is a life. Right. So my dream again with a lot of factors, is to free financially Said you can go figure out your God given talents, listen to your soul and have the life you really want. That's why I came here today. Come join being on the social pages. Come. So I just joined Instagram. I'm so far behind. But come join me on Instagram. Come join me on Facebook. Come join me on Twitter. And the last thing is, let me give you some homework because they wanted me to kind of give you a summary here at the end. But you guys have been such good note takers. Such good note takers. Here's my homework for you again if you haven't already done it. Text me. Text me at 9. 7865 Text me your e mail. I'm gonna send you the first re chapters allotted Factor book for free, go to a lot of factor dot com website download the worksheet to track your expenses or go to the one of those websites. Go to clarity money dot com. An example of a nap track where your money is going for next 30 days. If the idea of setting up a dream account excites you and I could see it does cause you kind of all perk up, go open up an investment account. A corns was the example I gave you. I told you, I'm an investor in that company. It's a great resource. Super simple place. Invest small amounts of money automatically go create emergency account. Make sure that you go home and go. How much my earning my checking account. If it zero or a 0.1% and you could move it over to an online account like Marcus, where you get 200 quarter percent. Then get your money to work for you. Even if it's small amounts. When you respect your money, you respect your time. One of the big things I was trying to share Teacher today with that over here. That timeline was that we all creator time for money when we goto work, were trading your time for money. That's something we're not doing other stuff with that time. So you earn a dollar, you've got to become financially selfish. Remember how much I want you to pay yourself first. What was it? One hour day of your income? So if I were gonna have more bullets here because they're not, I tell you your next your last most important homework assignment is to promise yourself that you will pay yourself first that you will become financially selfish. You may not be. Go from 01 hour day tomorrow, but you could go from 01 hour and a year, two years, three years. If you started at 1% savings, you just went up 1% every month for a year, which wouldn't notice by the end of the year you be saving 12% All right. So my dream for you, aside from having enjoyed all this time together, is that you believe me, you can take action on one of these things. Would I like to take action on all of them? Yes, but go home and agree that you're going to do one thing. All right. Can we agree to that? Yes. All right. Give yourself a round of applause. Yes, Thank you.

Ratings and Reviews

Ling Fan
 

Great class! Concise and powerful! Wish I knew this 10 years ago.

Kennie Johnson
 

Very helpful and inspiring

Carlos Figueiredo
 

I thoroughly enjoyed the course love it!

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