Budgeting for Your Dream Job

Budgeting for Dreams Pic 1.jpg

Budgeting for Your Dream Job

By Briana Elmore

As Twenty Somethins, we have so many dreams and aspirations that may span outside of your current job description. It is important to prepare and work towards your dreams from a skills standpoint but also from a financial perspective. Sometimes, we can get so caught up in the grind and the steps necessary to take to get to where we want to be, we lose sight of the finances needed to get there.

It is important to have a sense of what your goals are and how you want to operate in that space. For example, do you want to start your own brand/business or do you want to transition to a new career at a new company. There are many questions that you have to sort through in pursuit of your dreams.

Some of the financial bearing questions you should ask yourself as you prepare for to pursue your dreams include:

Does location play a factor in my ability to grind to get my dreams?

This is a very important question to explore because it sets the trajectory of the financial mindset that you must operate within to fulfill your dreams. The answer to this question could require you to research and create a budget to figure out how much money is needed to move from your current location to the desired location of work. If you want to move outside of your current state you have to consider the cost of living in that area as well as moving costs to relocate your things.

Do I want to start my own brand? Will I have employees?

If you see yourself with your own brand of products and services that you will be providing for consumption, you will need to consider all of the starting costs to get the brand launched and the overhead costs that will be incurred to make your dreams a reality. This consideration involves assessing expenses such as website creation, marketing for your business, materials needed to create the product or service, work space, employee wages and benefits, and much more.

Once you consider the quantifying questions about your dreams, you have to assess your current financial and professional position to move forward in turning your dreams into a reality. You should consider if your current job is enough to financially support and sustain your current living arrangements and fund the dreams that you are working towards until you are able to work in your purpose.  In addition to your assessment of your current finances, you have to start planning out the steps that you would like to take in pursuit of your passions. Give yourself an outline of the things that you want to accomplish and the timeline that you foresee to get there.

The following saving habits can help you adapt the financial mindset to fund your dreams:

Open an account and distinguish that as your Dreams Fund.

Having a specified account for your dream will allow you to save money apart from the money that you operate your living expenses from. The Dream Fund can help you make your dreams more tangible and attainable because you have the funding to make them happen. The existence of this account can work to inspire you to go harder in perfecting your skills to accomplish your dreams. It can also give you some stability to have the freedom to pursue your aspirations.

Come up with an assessment of the amount you will need for your living expenses.

Whenever you come up with a budget and savings system to fund something that you desire it is important to consider your current living expenses. For instance, do you need to cut back on eating out or make the switch from name brand groceries to store brand products. You could potentially have to cancel your cable subscription and get the plug on someone’s Netflix account to save money in other areas to build your finances for your desired area of savings. This assessment of your current living can also help you assess how much you are able to save without compromising your living situation or saving aspirations. You may find that you have to sacrifice your saving for another area, such as your traveling budget or clothing budget, to save more to invest in your dreams.

Determine the timeline for your savings relative to your timeline to make your dreams happen.

This step allows you to add a tangible element to your saving goals. If you consider the developmental steps of your dreams, you can consider the monetary requirements that are needed to accomplish them.

Determine how aggressively you want to save.

This understanding can depend largely on the timeline that you give yourself. For instance if you know you want to move to a new state in the next 6 months, your saving and budgeting would need to be more aggressive to make that transition happen smoothly as opposed to the aggression that should be applied if you are moving in a year.  Likewise, if you want to start your own business your budgeting and savings for that need to work around your launch date.

Build a plan on how you want to generate revenue from your dream becoming successful to further fund your dream in the future.

This step is a good consideration at the beginning steps of budgeting for your dreams because it can reveal to you’re the sustainability of your dreams to keep them going long term. You may not know the outcome of how your dreams will work out but it is always in your best interest to plan for all of the outcomes while in pursuit of your aspirations from a financial perspective.

These financial tips can help you make your dreams a reality. They help add a layer of tangibility and accountability to capitalize on your purpose. As Twenty Somethins, it is important for us to dream big but it also vitally important for us to financially plan in an even larger capacity.