How to Create an Investment Plan | Phil Town

Understanding the steps for creating an investment plan is a critical part of the process, and should be based on your goals and objectives. That’s why today, I want to explain the steps you must take to build an investment plan that works for you and your lifestyle.

Hey guys i’m phil town from real one investing and today i want to talk to you about how to create an investment plan all right you guys you decided to start investing this is fantastic but you’re gonna have maybe a little trouble getting started or maybe you just want to be extra sure that you’re on the right path for success totally agree now this is where

An investment plan comes in making an investment plan involves more than just choosing a few stocks to put money in okay it’s a good idea to consider a few other aspects such as your current financial situation what are your goals for financial future and how all that can impact on your investing strategy very important stuff so let’s take a look at some of the

Elements that make up a really strong investment plan the first thing is to evaluate your current financial situation okay what’s your disposable income what’s your debt what are your average expenses the reason you want to do that is because this helps determine how much you can kind of tighten the belt to determine how much you have to invest super important

When i first got started my investment plan was the best every single penny i had and that meant i had to keep living you guys aren’t gonna be able to do this i had to keep living with everything i own that would fit into a small bag i mean about half the size of a duffel bag everything i owned right because i’m coming off being a river guide for 10 years so i had

To figure out how do i keep everything right where it is and that would free up more money for me to invest all right now the next thing is you want to define your goals and i don’t love this idea of goals but i’m going to use it here goals because i also want to use the word promise and and that’s a little bit bigger picture right when we make a promise about

What we’re going to do with our financial lives we’re going to create generational wealth we are going to become financially independent that becomes a promise goals are kind of ideas about how to get there so let’s talk about the goals here so first off where do you want to be for retirement where do you want to be for buying a house what do you want to do in

Terms of creating passive income these are all aspects that you can think of in terms of kind of financial goals yeah i would like to own a house we’d like to have passive income we like to have retirement okay put some numbers on that now determine how much risk you can take in order to go after these goals and by risk i don’t mean financial risk we don’t like

To do financial risk what we like to do is have certainty when we invest what i’m talking about is how aggressive do you want to get here to do this sooner right i mean there’s a whole movement out there called fire which is financial independence retire early and people who are doing that are really getting aggressive they’re getting aggressive with their jobs

Taking risk in their employment they’re determining i’m going to just make this happen and i’m not going to build this career that’s going to start paying me off when i’m 60 years old so figure out how soon do you want to get there and what kind of i guess lifestyle risk are you willing to take in order to do that in terms of job security in terms of consistent

Or inconsistent income you know are willing to be a consultant are you do you really need to have really consistent income my dad was a consistent income guy and for that reason maybe i became much more aggressive because i saw what that you know low risk lifestyle did to him and he ended up working a job all day long as a bookkeeper and then he ended up working

A job all night long flipping burgers at a dairy queen i mean it was all about for him it was all about consistent income at low risk and it really was tough financially because of that so you have to look at what’s going to work for you there’s i love my dad and he was tremendous one of the most you know people with the most integrity i ever met in my life and

He raised you know a great family we’re all really close and i and he passed away a few years ago but he really did his job so don’t take that i’m an entrepreneur and you know i get aggressive with stuff to be the way you have to do it it’s what works for you the idea is to get there where you want to be all right next decide what kind of investments you should

Make are you going to invest in in real estate would make sense right you’re going to invest in some stocks maybe maybe you want to buy a small business you’re going to have money going into a 401k what’s that going to go into and what kind of combination can you create here that’ll put assets in different buckets then you want to establish some sort of timeline

Now that you’ve kind of started to look at the whole plan start thinking in terms of the timeline and this is when you start to think about making the promise to yourself you’ve looked at the goals and you say to yourself okay i will do this and you make this commitment and with that commitment to this specific result that is measurable in terms of dollars in

My opinion dollars and it’s measurable in terms of time and what i like to do is see you write that out on a card and date it and sign it and that means you’re committed and then you’re going to take action based on that level of commitment and frankly this plan is i i think these plans are worthless if all you do is create a goal i think they’re so easy to blow

Off goals but when you follow a plan and you start look at the goals within that plan and then you ultimately put a promise together that says like i did i will make one million dollars starting today with a thousand bucks i will do that in five years and i dated it and signed it i looked at that darn thing every single day this was a great idea given to me by dr

Jonas salk who’s one of my mentors it’s one of the things that he did he promised himself he would cure polio i mean it almost sounds like something impossible but he did he promised himself and then he cured unbelievable what can happen to you if you make a promise and have a plan to go after it all right you guys so now i’d love to hear from you what does your

Investment plan look like just leave a comment below with your answer and i’ll be sure to follow up with you now thanks for watching go play look if you enjoyed this video you guys you feel it was valuable for teaching you more about how to create an investment plan just hit the like button and please share the video with your friends if you want more investing

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Transcribed from video
How to Create an Investment Plan | Phil Town By Phil Town’s Rule #1 Investing