One of the formulas that I follow in Rich Dad's: Guide to Investing is the 3 investment plans. I follow it because it matches my reasons for investing. They are as follows:
1. Security Plan - Plan to be secure. I'm good with a cashflow of around 20 to 30k per month and feel secure.
2. Comfort Plan - Or plan to be comfortable. It is true that it's a longer process in deciding what level of comfort you want to have especially if you are used with an environment that is focused on security. It is advised that both secure and comfort plans are no-brainers.
3. To be Rich Plan - As of the moment the clear picture that I have for this plan is small real estate investing and also my part time business before in network distribution.
At the age of 27 I tried to practice this investment plan. I wrote the plan and followed it. Then something more exciting and challenging came my way. Because I didn't have much experience and education in business and investing before, I tucked the plan and created a new plan. After 4 years of business and investing with the new plan, I realized the original plan was still better. The good news is I grew as a leader and a better businessman and investor. Those years wasn't wasted. And I'm happy that I am more determined to follow my original plan.
Just a few months ago I met some new friends. They also want to start businesses. When I advised them about my mistakes and why having a conservative plan is better, they don't seem that convinced. Then I realized I was also not that convinced with my original plan before. Then I accepted that my friends would be better off gain more experience and education in business and find their own formulas as I have found mine.
"Different strokes for different folks."
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