How to set a goal?

Discussion in 'Investment Strategy' started by db9, 14th May, 2017.

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  1. db9

    db9 Well-Known Member

    Joined:
    25th Jun, 2016
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    SEQ
    Hi PC,

    A lot of property investors are strong advocates of goals. I have seen the value of goals in other aspects of life but I am finding it very difficult to formulate a clear goal for property investing.

    I see a lot of people using the goal of generating a certain amount of passive income so they can have the choice to retire or at least have the freedom to do what they want. For me, I love my job and don't feel like finances are preventing me from doing things I love.

    The other thing I see is setting a clear end-point for goals. For example, purchase 3-5 IPs returning X amount and then pay down debt and live off cash flow. Why set a goal with an end like this? Why not just keep investing while it's comfortable and makes business sense. It's like Apple computers saying we have decided we need to earn X Billion dollars a year and once we reach this point we scale down innovation. Why not keep pressing for more? I find it depressing to think that my goal is to do something simply so I can stop doing that thing. Like working for 15 years so I can save, invest and then stop working? To invest for 15-50 years so I can stop investing and retire? Retire for 15 years so I can live out my days...

    What's the point?

    I have been working on my property investing goal for ages and so far this is my goal: Build security through property. I have strategies in place to help aim for this goal but the goal has no endpoint. I will continue to work, live and invest and don't plan on stopping any of these things.

    Do you think this mindset and vague goal is likely to hold me back? Is it wrong to simply have a goal to make as much money as possible through property investing?

    Does anyone have tips for goal setting? I've been trying to make sense of it all in my head for some time now, but thought writing it down would help. Very interested to see everyone's thoughts on goal setting in general.

    Thanks for the read - I feel like this is one of those posts that is more for me than the forum but hope it's okay that I've logged this here.

    Thanks all, Db9
     
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  2. ellejay

    ellejay Well-Known Member

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    19th Jun, 2015
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    Location:
    Kimberley and NZ
    You can have short, mid and long term goals. Investors can alter their goals and strategies over time, nothing is set in stone. Fine if you still like your job but do you want to set a goal of financial independence so that you can really choose to stay at work even if things change and you want time out? What would be that dollar amount for you? That's a clear and measurable goal.

    Maybe you're investing to leapfrog to your dream poor. What's the dollar amount or what could you do to get there? Maybe it's not a money goal but you love working on property. How many renos or subdivisions could you achieve in the next X years? What do you need to do to get there? You're the only one who knows what you want investing to achieve for you in the short, medium and long term.
     
    Last edited: 14th May, 2017
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  3. WattleIdo

    WattleIdo midas touch

    Joined:
    18th Jun, 2015
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    Location:
    Riverina NSW
    Totally agree with you so I won't be much help. Different strokes for different folks. Goals have their place and there are different ways of setting them and achieving them.
    I find mine work better when I'm utterly determined and keep them to myself.
    While I see the value in some form of projection into the future, I have no idea how people can 'plan' for booms and rental increases.
    I prefer to operate from principles rather than meticulous planning - it has its strengths and weaknesses. However, there is a lot of food for thought when reading other people's goals and projections. ;)
     
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