Intentional Investing
"If one does not know to which port one is sailing, no wind is favorable." Seneca
Investing in real estate is an essential part of building and securing wealth for the future, securing freedom for the present, and increasing the ability to make an impact. However, investing without a clear goal or plan can be a futile effort, much like sailing without a destination in mind. Shiny object syndrome is real and there are so many ways to make money in real estate, so many areas you can specialize in and rabbit holes you can go down.
If you don't have a specific goal in mind, no investment will be right for you and you’ll get lost in the endless options. Floating aimlessly. Subject to the whims of the market, without a clear sense of direction. To invest intentionally, you must first determine what you're trying to achieve.
I’ve caught myself in action trying to figure out “what is the point, what are my goals, and why am I doing what I’m doing?”. Sure, freedom. Yeah, I want to work for myself. Of course I want to achieve my full potential that I find difficult to achieve within the boundaries of another organization putting me in a specific box, role, and position. But what I really want to do is leave things better than I found them. I want to contribute to the community, I want to improve individual situations, I want to build teams, all while improving community options. For example: I want to build a coffee shop on my commercial lot in Big Bear, CA. My lot is in a little coffee desert where the nearest spot is 20 minutes away (to Starbucks) and 25 to the nearest local spots. A coffee shop isn’t some noble cause, but it does fulfill a market gap. The second layer to this goal is to create a profit share model for employees to equitably distribute funds and create a reason to stay, grow, and contribute to the business. The third layer is to create structures that maintain the trees in existence, add native plants, and improve biodiversity and soil health within the boundaries of my tiny footprint.
How are you being intentional? What are your goals? For example, if your goal is to save for retirement, your investment strategy will differ significantly from someone who's saving for a down payment on a house or for their child's education. Knowing your objective will help you identify the best investment vehicles to help you achieve it, whether that's stocks, bonds, mutual funds, or a combination of these.
Once you have a clear goal in mind, you can then create a plan for achieving it. This plan should include a timeline for reaching your goal, how much you need to save, and how much risk you're willing to take on. It's essential to set realistic expectations for yourself and to stick to your plan, even when the market is volatile.
It's also crucial to monitor your investments regularly and adjust your strategy as needed. As you get closer to your goal, you may need to shift your portfolio to more conservative investments to protect your gains. Likewise, if you're not on track to reach your goal, you may need to take on more risk to achieve it.
Take the time to determine your objectives, create a strategy, and monitor your progress along the way. With an intentional approach to investing, you'll be well on your way to achieving your financial goals.
