Not surprisingly, the fear of losing your financial security is one of the most common fears that dream chasers face and it’s powerful enough to stop most people dead in their tracks. Let’s face it, nobody wants to fall behind on their bills or be forced to go without the things they and want and need. And the current economy has only exacerbated this because the fear of money, or lack thereof, pushes us out of our comfort zone by threatening our fundamental way of life.
What many people forget is that with common sense and realistic planning following your dreams doesn’t have to mean financial insecurity in the least. Here are a few simple steps you can follow to make your financial situation work for you and your dreams:
1. Know the numbers: Understand your personal financial situation. How much do you have saved? How much do you owe? What do you need to survive each month? How much money can you realistically expect to make when you’re following your dream? Answering these questions will quickly help you determine if you can pursue your dream full-time or if you need to secure some form of employment in order to support yourself.
2. Trim the fat: Identify the things you don’t absolutely need (think bar tabs – coffee and otherwise) and cut them out in order to reduce your monthly expenses. This may seem heart-wrenching at first, but once you analyze where all your money goes you will quickly be able to plug any unnecessary drains. And just remember, it’s for a good cause.
3. Set financial goals for your dream: The general rule of thumb is that it takes about three years for a new business to become profitable. Of course, this will vary depending on your specific dream. But whether you dream of going into business for yourself, following a creative calling or changing careers all together, set a firm goal for what you want to earn within the first year and then develop a strategy for how you’re going to make it happen. Then plan for how you can grow what you’ve already built each year beyond that.
By understanding where you stand financially, cutting out any unnecessary expenses, and setting realistic and achievable financial goals for your dream, you will have more control of your financial fate. That will make following your dream less stressful and allow you to focus your energy on doing what you love…not worrying about money.
“True happiness brings more richness than all the money in the world.”
The Fear Series is a ten-week series of posts that explores 10 common fears that dream chasers face.
Are you a dream chaser facing a particular fear? If so, I’d love to hear from you!
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