Achieving your investment goals guide
Have clearly defined goals
Defining your goals is a critical step if you want your property portfolio to take you to 'financial freedom'. But where to do you start?
Firstly, start thinking about your overall objective:
- How much cash and/or income do you want from your investments?
- By when?
- Why? (What will this money enable you to do?)
Document a personal business plan
Having defined your goals, you can now start building out your personal business plan. Think about:
- The kinds of property deals that are most likely to deliver you financial outcome (e.g. long-term capital growth, quick renovate and sell, longer term property development, or positive or negative cash flow deals)
- Calculate the minimum profit you will need from each property investment
- Work out how many property deals you’ll need to do to achieve your financial goal
- Analyse and understand any obstacles that may stop you from achieving your goal (e.g. limited time, lack of investment capital, inability to get finance, lack of knowledge, lack of available stock etc)
- How you plan to overcome these obstacles
- Exactly what you need to achieve within the next 12 months to be on track towards your overall financial goal
Every six months, you should be asking yourself "Is this plan going to deliver what I want?” Am I on track to achieve my goals? If not then you shoudl reasses and begin the process again.
How do you stick with your plan?
1. Accountability Buddy
One way to help stay on track is to have an ‘accountability buddy’. You may be familiar with this term if you go to the gym, but finding a friend who is also looking to achieve investments goals, or perhaps someone who is an experienced investor, to check in with every few months will help ensure you stay on track and therefore more likely to achieve your goals.
Make sure you:
2. Vision Board
- Keep feedback and criticism constructive
- Revisit each others end goal when you meet
- Meet every 3-4 months
You may think this sounds like a silly idea, but having a visual representation of your goals can be a great way to ensure you’re frequently reminded of what you want.
- Cut out pictures from magazines and catalogues to stick on the board
- Hang the board somewhere you can see it everyday
- Add a succinct ‘two-sentence’ goal to the board - this helps give clarity
Undoubtedly you have some medium to long term goals, to ensure you don't lose motivation write down sub goals that underpin the longer term goals and add a to-do checklist that you can look at frequently.
- Keep these on a three-month basis
- Tick off items as you complete them
- Ensure you can see how they contribute to the ultimate goal