Reverse Engineering Your Income Goals
"Decide How Much You Would Need To Make To Live A Life You Love, Then Create a Plan To Hit That Goal."
- Brianna Zajicek
Recently I started feeling some stress around my business income, and setting goals that made sense, inspired me, and met my current life and business stage. My main goal recently has been to focus on my podcast, creating and editing new episodes, and focusing on a launch strategy. As that doesn't directly correlate to income, I've felt a little torn on my income goals and haven't been paying them as much attention.
However, I know that income goals are exciting and important, because without the income I need I can't support my family, my future, or make the impact that I'm looking to make. Because of this I'm always looking to increase my income, so that it's growing as I grow.
So I wanted to set some new goals, and see it all on paper like I've done time and time before. And in the process I recorded a video for you all to watch as I go step by step into reverse engineering my income.
Reverse Engineered Income Goal Setting Process:
1- Decide How Much You Want To Make - A number that feels good to you, excites you, scares you a little, but that you believe is possible.
2- Evaluate Your Current Expenses + Extra Expenses To Live The Life You Love - This includes the expenses for living your current life without financial stress, and this includes a buffer for anything unexpected (good or bad) that may occur, along with new expenses for things that would improve your happiness and quality of life.
3- Understand Your Minimum & Maximum - This is the minimum standard that you set for yourself to earn, and the maximum you think it capable given your existing energy, focus, upcoming launches, etc.
- It's not that you are capping your income, but it's about being realistic with your current money mindset and understanding that you can't make more than you think possible given whatever your effort is for the month (these goals are relatively low compared to what I typically make, but I'm intentionally setting them this way due to my primary focus being on my podcast, which is a non-revenue focused goal).
- The minimum standard is usually the most important point because if you truly make this your "standard" something by which you are not willing to accept anything less than, you will be shocked at the methods by which you can ensure you hit this goal.
- If the minimum or maximum seems too high, you'll need to go back and do some money mindset work to better align yourself with believing and hitting your goals.
4- Evaluate Your Existing Income - Know how much money you can already count on from all existing sources of income, anything you are confident on happening.
5- Figure Out The Gap - This is the difference between your ideal income range and your existing income, this is the "gap" for which you'll need to figure out new income sources
6- Brainstorm New Income Sources - There's always an infinite number of ways to earn income, so feel free to be creative. If you are feeling stuck you may want to do some meditation, relaxation, creativity sessions to help with bringing in the creative juices, and opening yourself up to the multitude of possibilities that exist.
Tips & Tricks
- Keep It Close - Usually you'll want to set goals for the year, and then come back each quarter and month and reevaluate, adjust, and re-align with your income goals. Anything longer than 1 year is too far out.
- Don't forget your savings - I usually do between 10-25%, I also usually put in my savings figure last because of this reason (it's easier once I know the other #'s)
- Include a buffer - This is life changing people, it helps you so that if you get called to purchase something you have the funds, and if you have an unexpected expense you have the funds, keeping you totally stress free
- Invest In Yourself - What would it take for you to get to the next level in your personal life and in your business life? Would you hire a new team member, would you get professional photos done, would you offload a stressful task to an expert, what sort of support would you have? Don't forget to include these investments, they are so important and save time and stress.
- Plan for growth - Each month I like to see an increase in my income most months, some months like March it's actually a reduction because I plan on working less on income producing activities (not taking on any more clients, removing some old clients, and not promoting my book sales). Usually the plan to not capitalize is because of a bigger goal (like spending time with family or taking time off, or going on a retreat, or even focusing on something that will earn income in the future but not as much immediately (like my podcast))
- Plan to phase out - Of anything that doesn't serve you. If you are feeling overwhelmed with too many clients then phase out of one on one services and into a one to many, if you are wanting to leave an old job, if you are wanting to spend less time on a different business, etc. If something doesn't feel good to you, if you aren't excited to earn money that way, then choose another way.
- Don't Leave Anything Out - This process is based on the assumption that you clearly are in touch with your income and your expenses and have it down to a science. If you don't you'll first need to go back and make sure you understand your finances.
- Include Paying Off Debt - Debt is a tool which we can leverage at times to pay things off over time versus immediately, and there are many times when this makes sense. However, an accumulation of debt can become a stressful & heavy burden, so it's best to keep your debt in check. Lastly, I always feel 10X better when I'm living debt free, it creates a sense of peace, calm, freedom unlike before, so make sure you work on this.
- Make Sure It Excites You - If you aren't excited by the goal, then you probably need to go back and re-work through the process. Work on clarity and follow your intuition on what amounts would really make you excited and energized. One way to make your plan excite you is to include random splurges, that luxury handbag you've wanted, flying in first class on your next trip, anything that excites you to work hard and hit your goals. Sometimes tying it to a physical outcome helps to create more excitement than just the numbers themselves.
- Don't Forget Travel - Taking breaks, regardless of whether they are staycations or luxury worldwide travel tours, helps you to remain inspired, relaxed, and ready to give your best to the world. So include some relaxation & adventure into your plan.
And if you aren't sure how much you need to make, then check out my article on creating a vision statement for your life, so you can gain some clarity of the kind of life you want to life and how much you'll need.