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Automatic wealth The 6 steps to financial independence - Masreson M.

Masreson M. Automatic wealth The 6 steps to financial independence - Wiley & sons , 2005. - 291 p.
ISBN 0-471-71027
Download (direct link): automaticwealththesixstepsto2005.pdf
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There are many ways to get to that $120,000 number. Let’s say you’re planning to do it this way:
Medium-Term (Seven-Year) Goal: $120,000 per Year in Pretax Passive Income
• Own, free and clear, $300,000 worth of rental real estate, yielding $45,000 a year
• Own $200,000 in bonds, yielding (pretax) $15,000 a year
• Have $200,000 in stocks, averaging $25,000 a year
• Own equity in a business distributing $35,000 a year
Now what? Now you have to figure out what you have to achieve this year in order to reach those seven-year goals. Your one-year goal might look something like this:
One-Year Goal
• Buy $60,000 worth of real estate at 20 percent down
• Buy $10,000 worth of bonds
• Buy $8,000 worth of stocks
• Get a business started
Step 2: Plan to Become Wealthy 51
The next step is to break your yearly goals down into manageable, bite-sized monthly objectives.
One of the yearly objectives in our example is to get a business started. So you would break that down into 12 monthly goals—what you need to do each month to get your business up and running, from doing the initial research to the grand opening.
Then you break each of those 12 monthly goals into 4 weekly goals. For instance, if your first monthly goal in getting a new business started is to identify a good business opportunity, perhaps each of your
4 weekly goals will be to research at least 10 possibilities.
Finally, you work your way down to the action you will take each day to fulfill your weekly objective. If you have made a commitment to research 10 business opportunities each week, that means one of the top priorities on your daily to-do list will be to research two possibilities.
Expect to spend one full day planning out your year. Once a month, you’ll sit down for two or three hours to map out your goals for the next four weeks. Once a week, you’ll spend one hour establishing your goals for the next seven days. And you’ll spend about 10 or 15 minutes each morning organizing your day.
I know that sounds like a lot, but taken all together you’re really spending no more than three days a year to map out your strategy for achieving financial independence in the next 7 to 15 years.
This is how I establish my goals, focus my objectives, and set daily tasks. It’s not, by any means, an entirely original system. It’s a patchwork of systems that have been developed by others and added to by me. But there is something about this particular system that seems to work.
It works so well, in fact, that I encourage everyone who works for me to use it. Those who do find that it works very well. I think you will, too.
There is no better time to collect your thoughts, review your goals, examine your current responsibilities, and plan your day than early in
Andy, a senior staff writer for Early to Rise (ETR), had been struggling to keep up with all the work I'd been giving him. I knew he could do everything I had asked him to do and much more, but he was swamped. When we talked about it, he explained that he was interrupted frequently, that oftentimes the research he did took much longer than he expected, and so on. I asked him if he followed my goal-setting program. He admitted that he didn't.
"I know I should start," he said, "but I've been so busy."
I encouraged him to give it a try, and he agreed to put together a weekly and a daily to-do list right away.
A half hour later, he came back—but with two almost identical lists. His weekly schedule had eight items on it. His daily list had almost all the same ones.
Looking at these lists, it was clear to me why Andy wasn't making the progress he was capable of:
• His daily task list wasn't balanced. (A balanced list is one that ensures that every day you spend a certain amount of time on each important long-term goal.)
• His tasks were not prioritized. He was feeling pressured to get a certain big job done because it was overdue, so he was spending most of his time on that job and neglecting tasks that were actually more crucial.
• Instead of taking a little extra time to follow my goal-setting program, Andy was organizing his work by writing down lists of chores that others had asked him to do—not according to what he knew he needed to do to advance his personal objectives. That made him a slave to those people instead of a master of his own time.
We went over the basics of my goal-setting program, and Andy agreed to get started on it over the weekend by coming up with his list of four life goals.
And he did.
Step 2: Plan to Become Wealthy 53
His long-term wealth-building goal was (no surprise) financial free-dom—a life without debt. He had broken that down to the annual income he hoped to be generating at the seven-year milestone and had targeted a significant accomplishment for year one: to increase his income by 100 percent.
That may seem unrealistic, but he had already figured out that he could achieve that very aggressive goal by writing two winning promotional packages (what direct marketers call controls) for Early to Rise.
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