When creating a financial plan or investment strategy, most people start at the wrong place.
They ruin the strategy chasing time; They try X or Y or Z for a short period, thinking that it “doesn’t work,” then proceed to the next … never realizing that to switch into activity from activity is a main reason that they never physical.
It is not that it is one to find optimal investment or action steps Bad thing. But there is not a single right way to reach financial success.
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The right plan for you will be different from the right strategy for someone else – and no matter how good it is Any The financial plan you make as a paper, it would be only as good as you put in it.
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Why some financial plans fail
After being a financial advisor for 18 years, I know that some people fail to achieve the results they want for three major reasons from their financial plans:
Continuity of goods of action and sporadic implementation
To do too much and produce low quality results (instead of focusing on some things very well)
Commitment to the process comes over time and goes on
These patterns give rise to some approximate results. As people either ignore the stages of basic action that will lead to stable progress Or Leave important main activities as they choose to pour energy in areas that do not actually move the needle on their plan, things slip through the crack.
Mistakes are made but are not correct, which reduces errors over time.
People sometimes get distracted and ignore their finance for a long time, leave a big disturbance and to catch a lot when they eventually sit to work on things.
This dirt is often so heavy that the cycle starts properly again; They are coming back to completely ignore their finance, or they choose to pursue a shiny object instead because it seems easy – even if it is unlikely to rescue the main issues left unresolved by the underlying behavior of the underlying behavior, inconsistency and lack of attention.
What strategy you choose is important
Read a book like How do I invest my money, Edited by Joshua Brown and Brian Portnoy, and you will see the time and time again, the investment professionals would say that the special strategy or strategy they use with their own finance can not be the purposeful “best” or “right”, but it works for them.
There are many different strategies in the world of financial planning and investment management because people have many different objectives. There are many different goals to achieve, and many different stairs to climb.
“It works” means that the plan or strategy is designed in such a way, the first and most important, it will fulfill the specific objectives of the person or home.
It also does “work” because it is a plan that is most likely to allow someone to do three most important things that determine that you are successful or failed.
Three features that determine the success of a financial plan
When financial plans fail, it is not necessary because someone took wrong action, or used a strategy on a sub -strategy. And I will argue that this is almost never because they remember some secret, exclusive information.
This is because the plan, or the person trying to follow it, does not focus on these three important elements:
Stability
commitment
Self-confidence
You can increase your chances of success, whether your special financial plan looks, if it facilitates these main components. What does it look like in every behavior here.
1. You continuously take action
Being consistent means that you show and take necessary action, such as saving adequately, intelligently investing and protecting yourself and your property on the way.
Once taking a good financial decision, or taking a single action that has a positive effect on your financial life. It is enough to do it for all the days after day, month after day, month after day, month after day, to develop your balance sheet and create real money.
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When you invest your money, you create continuity so that it can benefit from compounding returns (instead of trying to jump into the market time or cash, thinking that you can avoid the days of the bad market in such a way).
When you avoid those mistakes, when you avoid those mistakes, such as you don’t have to do (such as too much or unnecessary risk, for example).
Consistency is important. Constant performing on your strategy will lead to more progress to your financial goals than to start and resume various schemes, strategies, attitudes or investments.
One percent better, or close to 1% where you want to be, make incredible results when applied over time.
Which leads to another element that must be present for success: commitment.
2. You are committed to long -term
We know that financial markets are incredible vehicles for money generation … and it is the most strong when investors are patient and are ready to invest repeatedly through full market cycles. In other words, it takes time. As, in decades of decades.
But commitment for long periods will convert the most modest portfolio into financial powerhouse if the money invested is allowed to compound for 20, 30 or 40 years.
3. You feel confident about your choice
Finally, you should feel confident in the plan you have chosen and the decisions made by you.
Without the belief that your strategy makes sense to you, it becomes impossible for this process to be constantly and committed for decades. Any Financial or investment approach.
Countless routes are available to go where you want to go. What you choose should align with your goals, your real ability to follow the plan, the resources you have executed on it, whatever boundaries you face, and on the right path to achieve what you believe that you want.
If you want to achieve true financial success, do not waste your energy to find the right plan. A final “best” strategy or strategy does not really exist.
Everything depends on the context of your life, and the optimal strategy for you is what you can continuously over and execute over time.
What matters that you know yourself and what you are willing to do. You know business Will not done Make Play for your strength, keep a plan for your weaknesses and avoid what you cannot maintain.
If you are ready to work, almost anything can work.
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This article presents the ideas of our contributing advisor, not by Kiplinger editorial staff. You can check advisory records with Second Or with Finara ,
