It is coming to the end of 2010 and it is time for review as well as setting new goals for 2011. I will cover the review in a later post and now, I just want to focus on sharing how I set my 2011 goals.
How I set my goals for 2011
Step 1: Specify minimally 50 measurable goals and phrase them as if I have already achieved them.
I aimed for volume first because I want to make sure every area of my life is covered. All statements must be phrased in such a way that you have already attained them. It must be in present tense as well. For e.g., I earn XXX a month.
All the resources you'll ever need as an investor
We've gone ahead and done the work. Compiled here are all the resources you'll need as an investor.
Step 2: When will you achieve them? In 1, 3, 5, or 10 years.
Put a time frame to when you would want to achieve the goal. Assign 1, 3, 5 or 10 year to each goal.
Step 3: What are the most important 1 year goals?
Focus on the goals that you labeled 1 year and select those that you want to achieve.
Step 4: Why do I want these goals? What they mean to me?
Most people did not achieve their goals because they do not have a strong reason to do so. Hence, the most important question to ask is why. The stronger the why, the higher the chance you will achieve it. When the why is not strong, you should actually give up the goal, it is likely not important to you in the first place.
Step 5: What is the person you need to be to achieve the goals?
To earn a desired level of income, you need to become the person to command that kind of pay. Focus on becoming the person. So what do you have to become to be worthy of the goals you have set?
MY GOALS IN 2011
Here are my goals, not in order of importance:
#1 – I drink at least 2 litres of water daily.
Why? I do not have the habit of drinking water and hence, often go dehydrated. The human body is largely made up of water and it is crucial for our body to function properly. By drinking enough water is the first step to have a healthy body and a sharp mind.
What is the person I need to be? I need discipline.
#2 – I sponsor my mother a trip to Beijing.
Why? My mother deserves it and it is a way for me to show my gratitude. I believe she will enjoy it and that makes both of us happy.
What is the person I need to be? I admit I tend to be impatient with my family sometimes. I ought to be a more loving person at home. I need to improve my attitude and approach her in a way that she can feel the love and gratitude I have.
#3 – BigFatPurse receives 1,000 visits daily.
Why? I want to reach out to as many people as possible to inspire them to take care of their finances. In an aging society like Singapore, the dependency ratio will be very high in the future. Imagine, each person has 5 dependencies (parents, spouse and 2 kids), how much resources do you need to survive or live your desired lifestyle? I hope more people can be financially savvy and the society can be better off in general.
What is the person I need to be? I need to find good ways for the average people to invest and grow their wealth and I need to prove that these methods work by applying them myself. I would need to continually communicate sound financial principles which means I must be a keen student in the area of personal finance to build up my knowledge. I need to improve this blog and use any other means to expand my reach to more people in order to spread financial literacy. I need commitment.
#4 – I conduct interviews with successful traders and publish an ebook.
Why? I always enjoyed reading the interviews with top traders and investors. Books like “Market Wizards” and In the “Inside the House of Money” are inspiring and give a glimpse of how the experts invest their money. Hence, I want to conduct my own interviews and consolidate them into an ebook.
What is the person I need to be? I need to engage the interviewees to encourage them to share as much as possible. I need to research and think of good questions to tap the minds of these successful traders.
#5 – I double the position per trade.
Why? I am trading within my comfort zone now with the amount of capital. I would have more savings to double the capital that I have and hence, I should double the position for each trade as well. This is the way to hone my trading skills.
What is the person I need to be? The risk remains the same in percentage (double position with a doubled capital = same position sizing) but the profits and losses are doubled in absolute terms. Trading a bigger position requires a stronger psychology.
#6 – I find 2 undervalued stocks and take action to profit from them.
Why? Dennis has taught me methods to find undervalued stocks. I need to hone my investment skills and acumen to be a better investor.
What is the person I need to be? I need to be hardworking to apply the techniques and do sufficient research. I need to revise the methods to improve my understanding and be familiar in applying them.
See Part 2 for more goals!