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One of rich basic tenets on money is, money is an idea. Rich said, there are fast ideas and slow ideas, just as there are fast trains and slow trains. When it comes to money, most people are no the slow train, looking out the window watching the fast train pass them by. If you want a faster way to become rich, your plan must include fast ideas.
If we were to build a house, most people would first hire an architect and the architect would work with you to create a set of plans. Yet when these same people begin to build their fortune or plan for the future, most people do not know where to begin and they never design of a financial plan for their lives. There are no blueprints to wealth. When it comes to money, most people follow their parents’ financial plan and that plan is often to work hard and save money. Following that plan millions of people sit on the train to and from work and watch the limos, corporate jets and luxury homes form the window to their train.
If you do not plan on spending your life gazing out the window of your train, plane or car, stuck n rush hour traffic, you may want to begin creating a faster financial plan.
Rich said, a professional investor always has an exit strategy before they invest. Having an exit strategy is an investment fundamental. That is why rich also said, always start at the end before you begin. In other words, before you get into investing, you need to first know how, when, where and with how much you want to exit. For example, if someone came to you said, what is the first thing you should do before planning a vacation? The same is true with investing. Before deciding what you should invest in, you should first know where you want to wind up. That is why rich repeatedly said, knowing your exit strategy is an important investment fundamental.
Many people invest because they recognize that the company they work for or the government is not going to take care of them after their working days are over. Many people are investing today of their long term financial security. While it is good that many more people are investing today, I am afraid many investors did not give much thought to their exit strategy before they bargain investing.
