A vague understanding of exactly what it is that you want to attain will tend to move you in an unsure course to a destination. Therefore, as you set goals you will need to fine-tune your ultimate goals as well as the interim steps necessary to reach those goals.
Start with the Principal Goals
Principal goals are the rungs of the ladder that reach from now to a future date at which there is a plateau. These goals are rewards that come from fulfillment of your interim goals. To be specific, say your main goal in real estate investing is to replace your job with income-producing investments that exceed your present annual income by 20 percent. If your current income is $80,000 a year, this means you have targeted the monetary measure of $96,000 a year. As you will discover when it comes time to pay your income tax, the real estate you have acquired may provide an additional bonus to your income in the way of reducing your actual income tax.
Work on Your Interim Goals
To attain your principal goals you must first go through a series of steps, or interim goals, to reach the stages defined by each principal goal. Level by level you move toward the end goal. The speed at which you progress will be governed by the following:
- Your initial capital available to invest
- The time you can devote to this process
- Your talents and abilities to improve the properties you acquire
- Team members you have to help out
- Partners to help with the capital needs