Plan for Wealth

Set Your Goals
You will not be able to achieve wealth unless you sit down and do a bit of planning. Translate your desires into sound financial goals. It is very hard to achieve anything or go anywhere unless you know what you are supposed to be achieving, or where you are supposed to be going. Sit down and write a list of the things you want to achieve by a particular age or particular time.

Get excited and transfer this into a set of goals. Write them down so that they are clearly established on paper. Keep going back to those goals from time to time. You may set down ten goals in the order of priority you first see as important to you. Along the way you may find that your priorities are shuffled around because as you start to take action some priorities will not be as important as others.

Be Serious and Commit
The main thing is, you need to be serious about your goals and be prepared to commit yourself to achieving these goals as close to your plan as possible. Always put your goals in writing because this makes them real objectives and not just thoughts or fantasies in your head.

Your goal may be to be a millionaire by the time you are 30. It may be to own a $½million home by the time you are 40. It may be to own a business that will provide an income of $2000 a week for the next 20 years, and be worth $2million in 25 years time.

Split your goals up into short-term (what you want to achieve within the next 12 months) and longer-term goals (what you want to achieve within the next few years). As you start to tick off your achievements, you will be encouraged to complete your goals, one by one. It won’t be long before you will look back and be surprised at what you have achieved, simply by consistently and faithfully following the plan you set out at the beginning.

Keep Your Head
Wealth creation should be based on sound judgement and not on emotions and feelings. Never allow your emotions to get in the way of sound strategies and good judgement. Always keep your head when faced with an opportunity. If necessary, before signing on the dotted line, talk to your advisers.

It is hard to resist purchasing what appears to be a moneymaking opportunity, or a business that looks like a goldmine. Do not allow your emotions to get in the way, because you could end up making an irrational decision, ending in heavy losses. By all means, get excited, but do not make decisions based on your emotions or anyone else’s emotions. Make your decisions on sound rational thinking because any opportunity must stack up financially.

If Looking at Shares
If you are looking at investing in the share market, for instance, be aware of how the market operates and make buying and selling decisions based on your knowledge and your adviser’s knowledge of the marketplace. A lot of history and market information is available, showing the various investment cycles.

This contributes to the information database you need to have in front of you when making decisions. For example, when investing, there are certain things that every investor should know. Some of these include the fact that markets move in cycles, that investments such as property and shares are best for the longer term, that they increase or decrease in value over time, that too many people buy quality investments when the cycle is at its peak and then sell them when the market has bottomed out.

This type of information should always be considered when making investment decisions, rather than relying on emotion and the marketplace, when everyone is buying and investing as if there was no tomorrow.