The Power of Goal Setting

Posted by: theinvestortoday / Category: Articles

This particular lesson may be the hardest thing you ever do in your life but it is more worth anything else you’ve ever done. Let me explain something to you first.

We live in a society that takes very young children out of their home and inputs them into an education system. While that education is certainly valuable, there’s something interesting that happens from a very early age and continues on for most of your life.

You’re Told What to do 24/7!

Because of that, one of the main things investors struggle with is when they are given a wide open canvas of new ideas and freedoms. From 5 years to told to 18 years old (and really before that with your parents), thinking about the magic question of ‘what do I really want for myself’ is a question you just don’t typically get time to answer. For at least the first 18 years of your life, you’re kept completely preoccupied with task after task that doesn’t allow for you to move in the direction that best fits you. If you’re like most people and you go get a job after that, you probably have a boss that will continue to dictate to you what your next move will be. Because of all that you’ve learned your whole life, unlearning it to transcend a better life can be challenging. However, it is the most rewarding thing you will ever do.

All Great Investors Know Exactly How Many Deals They Will Do

Did you know that studies show that 99% of individuals who set realistic major definite goals and review them daily will hit their goals plus or minus 5% on average. Psychologists have encountered something called ‘definite major purpose’ which simply means you have an underlying objective that outlines all your actions. Because you have a clear direction where most people do not, your underlying subconscious mind will always be looking for solutions that lead you closer to your goal.

When I asked one of best my investor friends how many deals he will do this year, he said emphatically “25 homes and we will also raise $5,000,000 in private capital.” He asked me and I returned my specific answer. Ask the average investor and you’ll only get vague answers like ‘enough to quit my job’ or ‘I want to get rich.’ If you have a measurable target to achieve, then you can clearly judge your success. The universe provides you with instantaneous feedback on whether or not you have achieved your target. If you are seeking to make $25,000 this month, it’s very easy to judge whether you’ll need to increase your actions to get there or whether you are on target. If you’re looking for the ‘get rich quick’ mentality, you won’t really know when you’re there and consequently, your subconscious mind won’t work on helping you get you there.

How Much?

If you can’t say specifically what you set out to achieve, don’t bother writing it. Vague goals do not produce results. If you want to do 25 deals this year or just 1 in you first 60 days to get started, you’re going to have to have instantaneous feedback by specifying. Half-assed answers to questions produce half-assed results. Regardless of which investment model you use, if you want to be one of the most successful investors in that field, you’re going to know the answer to how much is success.

By When?

If you’re going to measure your results as successful, then you need to know exactly by when you’ll achieve them. Doing 25 deals in 25 years is very different than doing 25 deals in one year. You decide when you’ve done enough and how long it should realistically take to get there. If you’re serious about achieving your results, you’ll increase or decrease your required actions as it pertains to get there.

What Are You Going to do to Get There?

Your written goal obviously has to be realistic. If it’s not, then on some level you’ll know that you just can’t achieve it and you won’t really work it. Otherwise, you obviously know that it’s going to take some actions to get there. It’s funny because if the bossman tells you to ‘have this place cleaned up by 5 o’clock’ the chances are that you’d have no problem working to achieve his goal. If you set clear measurable goals for yourself, then you’re going to need some actions to get there. Only you can say what they are but just remember that when the boss tells you be done something by 5pm or the teacher gave you a homework assignment for Friday (both clear measurable goals), you achieved them with ease. It was not hard for you to figure out the actions required provided your goal was realistic, specific and measurable.

Review Your Goals Every Day

When I said that individuals with realistic goals achieved them plus or minus 5%, I also mentioned that they reviewed them daily. I recommend that you review your goals first thing in the morning so that it outlines everything that you aim to accomplish through the course of your day. By giving yourself a purpose for doing everything, you’ll find it easy to make decisions simply because they move you closer to your goal. You’ll know when you need to work and you’ll know when you’re okay to play. If your goals don’t dominate your reality then you will not achieve them. If your goals do dominate your reality, you are guaranteed to be successful.

Plan

Achieving a large worthwhile goal, like a financial real estate goal, takes specific actions to get there. Before you jump head first into your next day, spend anywhere from 10 to 30 minutes every night to plan the things you’ll need to do the following day to move in the positive direction of your goals. You’ll set the powerful wheels of your extraordinary mind working in unison into motion.

Why Do You Want All This Anyways?

There’s something more powerful than a specific measurable goal. That something is a list of reasons for why you actually want to achieve your goal. If you want to help your friends, family, quit your job, take that vacation or all of the above, it makes achieving your goal all the more commanding. The poor man speaks of ‘I can’t afford it because of you children’ but the driven rich man with clear goals says ‘I must be rich so I can provide a better life for my children.’

Why Does This Apply to Real Estate Investing Anyways?

You see, creative real estate investing all works using the same principles as any other business. You buy equity at purchase, then you sell that equity creatively for a profit, and you achieve this in a measurable period of time. Real estate investing is literally jam-packed with measurable targets for you to achieve and, better yet, jam-packed with measurable targets for you to set. If you combine major definite goals with your know-how, the sky is the limit for what you will achieve with creative real estate investing.

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5 Responses to “The Power of Goal Setting”

  1. Stemar Says:

    The goal setting and making good sale plan will help many people in their real estate investing efforts. It is essential but I still think that the most important think is the the hard work. Yes, the plans and the daily checking of your tasks will help you, but if you don’t take action your efforts will be wasted. What do you guys think about that?

  2. James Says:

    Hi The Investor Today,
    First of all thank you for the great tips.

  3. Peter Says:

    Thanks for this short and very useful guide. Do you really review your goals every day?

  4. theinvestortoday Says:

    Peter,

    Twice each day actually. If you lead the world to decide your life, they’ll decide for you. Do you know what they’ve got planned for you? Nothing!

  5. theinvestortoday Says:

    Stemar,

    Agreed. ;)

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