What’s missing when a motivational speaker tells you to visualize your goals? What’s missing is the “how”! People (hopefully) know about the importance of goal setting, but in fact, it’s much easier said than done. I’ve created an online tool that will help you make and achieve your goals. But more on that in a minute….
Here’s the background you should know
In both chess and investing, you need to have a vision in order to succeed. Once your vision is clear, you move towards it by following a plan – or strategy. And the details and methods that you employ to follow your strategy are called tactics. All of these, vision, strategy, and tactics need to fit into your plan.
Build a STRATegic plan
In my new book Rich As A King, my co-author Grandmaster Susan Polgar and I talk about the importance of creating “STRATegic goals.”
Regardless of the particulars of your ambitions, make them all STRATegic. That is: Specific, Time-bound, Rigorous, Attainable, Tempting. By having a system for defining your goals, you can increase your odds of actually achieving them. The book contains a link to an online STRATegic goal-setting tool that we built. Try it out for free here and define your personal finance goals today.
A Vision Influences Your Position
As a chess player, every move you make calls forth a counter move from your opponent. At the same time that you respond to what is happening on the board, you also provoke a response from your opponent. Your success in chess is a result of how closely you are able to follow your vision, while at the same time avoiding your opponent’s traps.
Similarly, as an investor, you must stick with your goal while responding to the market’s whims. You need to have your vision, create the strategy to implement it, and be flexible enough with your tactics to adjust to the market’s movements.
To find out more about how you can build your visions in chess and investing, read this post on our new Rich As A King blog.
If you like the idea of thinking strategically about your investments, buy Rich As A King.
Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.
Published October 20, 2014.