Planning Now For Gains in 2008

So the stock market wasn't too impressed this week with the Fed's rate cut of .25%. Can't say I was really too impressed with it either, but that's the breaks. At least they are doing something. I still believe this presents us with a favorable time to pick up some bargains in stocks while the prices are down. To that end, I sat down earlier today to work on my plan for the new year.

I was recently doing some work on a computer that belongs to a friend of mine when I came across a file that contained his "Action Plan" for the new year, with his job as an insurance salesman. I was impressed with his list of goals for the new year and his plan of action for achieving those goals. Even though I have a long term financial plan in place, I thought how much more I could do if I wrote out a list of specific goals at the beginning of each year and an action plan for achieving those goals.

It was really quite simple when I gave it a little thought. I came up with several specific goals, most of which should be easily attainable. Then it was a simple matter to identify the steps I needed to take to reach these goals. The plan doesn't have to be lengthy. In my case it is one simple page. I posted this page on a clipboard that I keep on my desk with a current list of my stocks and investment portfolio. It is so easy to make plans at the beginning of the year, then get sidetracked by other things and before you know it, the year has passed and you never really got around to completing your plans. So I wanted it in writing this year and I'm keeping it right in front of me, to review on a daily basis. I think this will provide me with a little more incentive to get things done.

Ideas that you have in your head may be some of the greatest ideas ever, but great ideas are easily forgotten, and once out of mind, they are of no real value to you. By committing your goals and plan of action to writing and reviewing them regularly, you will find it much easier to actually make some progress. I'm sure all of us have done this at our jobs. I know I have. So why not apply this same effective habit to our personal goals. I have very little doubt that by the end of next year I will have reached my goals and be much better off financially. It only took me about an hour to prepare my one page plan, I believe that it will prove to be the most profitable hour of work I put in for the entire year.