How to Create an Investment Plan?

Hey guys,
I’m Rejaul Islam from and today I want to talk about how to create an investment plan. You guys 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. 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. It’s a good idea to consider a few other aspects such as your current financial situation, what are your goals for your financial future, and how all that can impact your investing strategy.
So, let’s take a look at some of the elements that make up a really strong investment plan. First, evaluate your current financial situation. What’s your disposable income? what’s your debt? what are your average expenses? The reason you want to do that because this helps determine how much you can kind of tighten the belt to determine how much you have to invest. When I first got started, my investment plan was the best every single penny I had and that meant 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. So, I had to figure out how do I keep everything where it is and that would free up more money for me to invest.
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 as goals because I also want to use the word ”promise” and that’s a little bit bigger picture. 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. First off, where do you want to be for retirement? where do you want to be for buying a house? These are all aspects that you can think of in terms of financial goals. You think 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? I mean, there’s a whole movement out there called fire, ”financial independence retire early” and who are doing that are really getting aggressive. They’re getting aggressive with their jobs taking a 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 risk are you willing to take in order to do that in terms of job security, in terms of consistent or inconsistent income. Willing to be a consultant, do you really need to have a really consistent income? My dad was a consistent income guy and for that reason maybe I became much more aggressive. I saw what that low-risk lifestyle did to him and he ended up working a job all day long as a teacher. It was all about consistent income at low risk and it was really tough financially because of that.
So, you have to look at what’s going to work for you. Don’t take that I’m an entrepreneur and I get aggressive with stuff to be the way you have to do it. The idea is to get there where you want to be.
Now, decide what kind of investments you should make. You’re going to invest in real estate, you’re going to invest in some stocks, 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 started to look at the whole plan, start thinking in terms of the timeline and this is when you start thinking 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 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. 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 looking at the goals within that plan and then you ultimately put a promise together. Dr. Jonas Salk promised himself that he would cure polio, it almost sounds like something impossible but he did. So, if you make a promise and have a plan just go after it.
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