Making a Plan

Yesterday, I mentioned an article where 3 couples followed a plan and were able to retire from their jobs in their 30's. How did they do that? There were some helpful hints in the article, but it was the culmination of a lot of different things that were acted on. In short, they had a plan and they followed it.

If you have never set up a financial plan, it can be daunting. Whether that plan is for retirement, setting up a business, a budget, setting up a college fund, paying the monthly bills, or financing a multi-million dollar buyout plan. You may have heard, 'if you don't have a plan, you plan to fail'.

The first thing to do is to identify what you are trying to do. You have to have a goal, an objective, a destination in mind. Otherwise, how do you know whether you are accomplishing what you set out to do? Some people think everything is OK because they are 'making it'. What does that mean? That they are not in default on their mortgage?

The next thing is that you have to find the appropriate tool for the job. It could require that you enlist some help from a professional or find a book that outlines the solutions. Depending on the task, the tools and plans can be very different. Think about it. Not every job around the house can be fixed with a hammer. The more complex plans are just a number of simple plans strung together. They are just stepping stones to your ultimate goal.

Once you have formulated the plan, you have to start implementing it. Not tomorrow, not next week, not next month, now! Procrastination will ultimately lead you to having nothing at the age of 60 with nothing to fall back on. Do you want to be dependent on your kids or other relatives when you get old? The sooner you start, the sooner you can get to your destination. Starting is usually the hardest part. It takes more energy to start moving than it does to keep moving. Once you are moving, you can begin tracking the progress and that can motivate you to keep going.

With any plan, there will be obstacles and unexpected problems. When this happens, you will have to go back to the plan and adjust it. Sometimes, you may have to get help with how to deal with the problem or with making corrections to the plan. Don't be afraid to ask for help. It is your future at risk.

One helpful hint is that you can give yourself rewards at key accomplishments along the way for motivation. These should not be extravagant. Don't let the rewards set you back. Some people are motivated by working toward a prise. Others are motivated by avoiding pain. Pain versus pleasure. Choose what works best for you.

The elements are the same all the time. Goals, plans, tools, tracking progress, adjustments, and finally accomplishments. The variables are you. Choose your destination.

Folly delights a man who lacks judgment, but a man of understanding keeps a straight course.
Plans fail for lack of counsel, but with many advisers they succeed. Proverbs 15:21-22 (NIV)

If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com