Thursday, November 14, 2013
KISS - Get To The Next Financial Goal
The acronym KISS (Keep It Simple Stupid) should be regularly applied when creating wealth. Even though becoming wealthy is not a game, it can In our goal of financial wealth and independence, we (myself included) sometimes get caught up in the reaching the finish line by catching instead of focusing on reaching the next goal. It is important to remember to not just focus on the ultimate goal, but to provide enough focus and planning to get to the next step. Even when you don't reach a short term goal, and have to adjust the timeframe for the ultimate goal, the chances that you will have an easier time reaching the short term goal the second time around are high.
Sometimes you might not make the short term target. But you still moved forward. That is a big indicator that the goal is right but the plan needs to be adjusted. There are benefits just to make more money than you had before. Reaching a goal is important. But if you happen to create a lesser amount of wealth that does not reach your goal, do not despair. If you can focus your short term plan on getting to the next amount, you will be at your ultimate goal before you know it.
Trading options is a great example on how plans can get off track. The lure of making monster gains sometimes will take money from other sources and instead of monster gains, monster losses occur. I remember a time when I thought that options were the way to get rich quick. This is true. Being on a roll options wise can make you a millionare very quickly. But a couple bad trades can take you (and it did take me) out of trading for a period of time. Using part of your capital for options trading (which is what I do now) can be a much safer A safer way to create wealth is to widen out the number of investments. Getting wealthy very rarely happens in a flash. For the majority of the population, it takes time, focus and managed work.
Having a longer term goal is important. But having a series of shorter term goals that lead up to the longer term goal is also important. It builds confidence and perspective as you look to the longer term goal.