Not Setting Some Clear Investing Goals

[Alex Gates]

The power of goal setting has been well documented and communicated so before you skip over this point because you’ve heard it all before I’d like you to consider how well you are doing it. I’m a firm believer that you don’t understand something until you are doing it.

The point I want to make about goals is more to do with the measurement part than with setting them. I know that sounds tedious but it can be really exciting. The most successful companies in the world track their progress against their goals because it is effective to do so.

Imagine putting a simple graph on your wall that has the months along the bottom axis and the cash flow you’ve developed on the vertical axis. You can draw a red line across the graph representing your target of $4,000 per year and then you can draw an angled line that adds another $333 to the cash flow each month. This gives you some very good feedback as to how you are progressing and motivation while there is still time to do something about it. That’s obviously much better than just seeing how you went 12 months later and finding that you only acquired property that produces $1,000 per year. It’s a very simple and powerful tool.

If you are really disciplined you can take this one step further and use the same approach for the activities that produce the outcomes that we are measuring on the other graph. This really helps ensure the result. For example, if you know you need to evaluate 100 properties and make offers on 10 to acquire that amount of property then you could graph those drivers as well.

To Your Success
Alex Gates
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