Picture Yourself Rich

Do you think of yourself as a wealthy person? Do you think of yourself as a poor person? Or, do you just think of yourself as something in between?

What Does It Take to be Wealthy?

Being wealthy is as much a matter of how people think as it is about the circumstances of their lives. Many people with lots of money feel poor or afraid of becoming poor; some folks with rather meager means feel “wealthy”.

What does it take for you to feel wealthy? While it is possible for people to feel wealthy in terms of family, friends, or other values, there is also a dollar amount that people need. It is just a few dollars more than the amount it takes for them to live the lifestyle that allows them to feel worthwhile and happy.

One of the most valuable goals a person can set is to determine how much income they need to live their choice of lifestyle and then work to achieve whatever amount of passive income is needed to live that life. The day they achieve that income becomes the time at which they can “retire”, if one is inclined to use that word.

How Can You Focus Attention on Your Wealth Goal

In this action step I am not going to deal with what constitutes true wealth or financial freedom. You can read my articles on financial freedom for that if you like, but I will point out that for most of us it doesn’t take as much money as many people suppose to live happily.

Now once that amount is determined, I want to suggest creating a visual that can help you focus on your “wealth goal” and help develop a positive, expectant attitude about it. You could make a poster similar to the one below.

This chart projects an income requirement of $5,000.00 per month but you may determine that you need a smaller or larger amount.

How Much Income Will You Need?

Every individual or family has to figure for themselves what they will need. Some folks insist on a large amount of income. You may actually require far less if you live a simple lifestyle, have a paid off mortgage, and live without debt.

Because you need to have a growing source of income to account for inflation, however, you will want to have investments that provide for at least ten percent more than your anticipated expenses. The extra income can be added to your investment base annually, in this way increasing your income year after year.

Conclusion

By posting this visual in a prominent place and focusing on it from time to time, you will keep it in mind. You will also be motivated to keep working on your financial freedom goal until it is fully achieved.

Specifically it will help you to maintain enthusiasm and persistence in funding such programs as your Roth IRA. These are long term goals and are likely to need motivational support more than short term goals.

Setting a financial freedom passive income goal may not be one of your first goals, but it is one of your most important long term goals. If it seems beyond imagining right now, focus on more urgent short term goals for a while, but do not neglect to give this a prominent place as soon as possible.