Step 7 – Create a Plan – The Ten Steps to Wealth
In this step, of the Ten Steps to Wealth, Paul suggests that we should make a plan. This is probably not unfamiliar to most of us…so what?
Well… this is how I have interpreted his suggestion:-
Let’s assume we have a clear goal (or at least one that is becoming clearer, in my case).
Let’s also assume that we are starting to embrace our mistakes as fantastic feedback as to whether our last step/behavior was effective in getting us closer to that goal.
Trial and Error?
There’s probably one of two things that are likely to happen next:
- We engage in random trial and error to get to our goal
- We create a plan to get to our goal
If I look at how I’ve gone about achieving one of my goals, that of being financially free by retirement (….still a fuzzy goal!), frankly I have not created a plan at all, but engaged in trial and error.
Read a bit about share trading; have a little go; fail-ish; move on.
Play with a bit of real estate; some success; don’t know how to compound the success; market changes; move on.
Save a bit here and there; read the newspapers; read a few different books; discuss with friends, workmates;
The reality is that I’ve allowed everyday life to consume my time and energy and the goal remains merely a thought “out there”: It would be nice to be financially free…
The Four Essentials
If I now want to create a plan, Paul says I must understand 4 important things:-
- I must have a thorough understanding of who I really am now.
- Plot my goal: where am I going or what I want to achieve.
- How am I going to get there?
- Why I need to make it happen.
Read the rest of Step 7- by subscribing to The Ten Steps to Wealth,to gain insight on Paul’s thinking and why the following will help you: To know your WHY, what strategies to incorporate, how time is a critical input and most of all how your brain functions in achieving goals (or non-goals!).
The sentence that really stood out for me is:-
If you wouldn’t build a $200,000 house on anything other than solid foundations, why is it that you’d allow a seventy to eighty year economic life to be built on guesswork, poor advice, intuition, feelings, hunches and a lack of knowledge?