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Defining Your Action StepsYou need to break each goal down into 8 Action Steps so you know exactly how to plan to achieve each one. It's easiest to start with the financial goals that absolutely must happen in order for you to move forward. In other words, if you don't take these action steps your investment career is stopped before its started. And contrary to popular belief, start with the easiest to accomplish goals first. It's incredibly motivating. If you start with the hardest goal you have, and you don't achieve it, then you may get frustrated and quit and never tackle another goal again. Instead, pick one, complete the action steps, and accomplish it, and you'll be excited about moving on to the next one. |
Each goal that you have should address the following 8 Criteria:
1. Specific - you must write down complete details of what you want to accomplish.
2. Measurable - give yourself a target, such as a dollar amount, an event, etc.
3. Achievable - write them down so it is clear to you exactly how you will accomplish it.
4. Realistic - don't start off by giving yourself goals so lofty that you'll quit before you start. Make them reasonable. Remember, as you progress in your investing career, your goals will be changing, so nothing is set in stone. Make them doable and you're much more likely to achieve them.
5. Timely - set a deadline, or a series of deadlines that need to occur along the way - this will create a sense of urgency for you.
6. Ranking - On a scale of 1 to 10, how important is this goal.
7. Funds - what current funds do you have available to reach this goal, and what estimated funds will you need?
8. Rate of Return - if the goal is for an investment, then what rate of return do you realistically expect to achieve on your investment.
Let's try an example. GOAL: I want to receive $5,000 a month in passive income.
1. I want to receive monthly cash flow of $5,000 a month.
2. I will do this in three years.
3. Using my initial start up capital, I will purchase three cash flowing single family homes.
4. These three homes will cash flow a minimum of $300 a month each, or $900 a month. By reinvesting my cash flow, in seven months from purchasing my first three homes, I will have saved $6000, and I can buy a fourth home. Repeating this process in the next three years I will have purchased 14 more homes for a total monthly cash flow of $5,100 a month, and 17 homes total.
5. House 4 can be purchased 7 months after buying my first three homes; buy house 5 five months after house 4; buy house 6 three months after house 5, etc.
6. This goal ranks a 10!
7. I will use my inital start up capital of $20,000 to fund this goal. Further estimated funds will come from cash flow of each subsequent property purchased.
8. A minimum of 5% rate of return for each house (this is a very conservative rate of return-I will show you why in the Research section of this website).
Using these Action Steps over and over again for each goal you have will give you the confidence that anything is achievable!
Return from Action Steps to Sharon's Real-Estate-Investing-Support.com
