Three Key Questions To Ask When Building Your Investment Plan
Moving forward with a simple plan to achieve great wealth
As I’ve travelled and spoken around the world, one of the most encouraging things has been meeting thousands of women who are ready to begin their investment journey.
It’s exciting to me to think of how the world of money and investing are shifting from something the man took care of, to something women want to own themselves. And it’s fulfilling to know that I’ve been a part of helping women take control of their financial futures.
One thing I notice, however, is that women can tend to overthink things. When it comes time to make a plan for investing, we can make it far more complicated than it needs to be. This is natural. Whenever we’re facing something new and intimidating, we want to try and control everything to feel secure, rather than simply move forward with what we know.
So, I like to give women three simple questions to ask themselves that will help them plan and get them going on their investment journey. If you ask yourself these three questions, you’ll be light years ahead of other investors.
1. What will my primary investment vehicle be?
You may invest in more than one type of investment, but I’ve learned that I’m more successful if I focus most of my time and energy on one type of investment. The four main types of investment classes are: real estate, paper assets, businesses, and commodities. Within each class, there are multitudes of investment types you could learn about. Study up on each class, find what excites you most, and pour your energy and passion into it.
2. Within that investment category, what type of product will I focus on?
For example, if you invest in stocks, what types of stocks are you going to focus on? What are you going to become an expert in?
For me, if I went into tech stocks, I’d fail miserably because I have no interest in them and I know next to nothing about technology. If I chose to go into stocks, I might put most of my attention into real estate stocks.
Conversely, if you chose real estate as your investment of choice, there are single-family homes, apartment buildings, office buildings, shopping malls, and more that you could focus on.
The point is to simply pick one thing that you can be an expert on and focus on that. Once you’re comfortable with that investment, choose what you want to focus on next.
3. What is my time frame for accomplishing my goal?
It’s one thing to pick a horse; it’s another to finincally bet on it. Establishing goals and placing the constraint of a time frame on them will help you to take action on your investment plan.
Along the way, you’ll have some successes and some failures. Continue to learn, adjust, and move forward with your plan. It’s really that simple!