Wealth Building for Beginners (Even if You Are Not Young Anymore)*

 2.- Welcome to My Path

 Let’s stop here, before we move through this thick wood, and think for a moment. What is it that you are looking for? Where do you want to go?

You say that you want to get rich. And as quickly as possible.

I say you are mistaken. But at this point, at the beginning of our journey, you can’t be expected to know that.

“If not getting rich, then what?” you want to know.

“You want to build wealth,” I say.

“What’s the difference?”

“There is a big difference,” I say. “It’s the difference between wanting and possessing, between anxiety and serenity, between having now and forever lacking.”

“Sounds like a lot of horseshit,” you reply.

“Follow me down this path and you’ll see,” I say with a wink and a smile.

“And why should I let you guide me?”

“It is my path. The one I cut. The one I know.”

Before I found my path

As a boy, I never had any goals or specific ambitions. I wanted only to be different from how I saw myself: weak, lonely, poor, and insignificant.

I dreamed – actually dreamed – of being rich and popular. I had a specific dream repeatedly for years. It took place in the parking lot “schoolyard” where we played during lunch break. All my classmates are there. A white limousine rides by slowly and stops. A chauffer jumps out, prances around the car, and opens the door. Little me, in white tails and brandishing a diamond-tipped walking stick, steps out. My classmates ooh and ah. I am loved.

I was earning money – or having a side hustle as they say now – ever since I could ride a bike.

I had the usual childhood jobs: delivering papers, cleaning neighbors’ kitchens, cutting grass, stocking groceries in the back of Al’s Deli, working in the Rockville Center Carwash, etc.

Before we graduated from high school, my friend Peter and I had a business painting the houses of the rich people that lived on Long Island’s north shore.

To pay for college and graduate school, I generally worked three jobs, including writing essays for my fellow students. (I offered them a guaranteed grade of B or better.)

Through it all, I never had a clear view of what I was doing. I had no money. I needed money. So I did whatever I could to make ends meet. Some weeks I made more money than I needed. When I did, I found a way to spend that money on something that pleased me for a few hours or, if I was smart, a few days.

I was walking but I wasn’t on a path.

I think I found my path in 1983.

The thing about having many goals…

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Are You Setting Goals… or Still Dreaming?

We all have dreams. We all carry movies in our minds about how life could be for us in a better world. Sally dreams of a big house with a built-in pool. Harry dreams of an eight-car garage filled with vintage Porsches. Jill fantasizes about painting pictures at the seashore. Jack wants that corner office with the view.

Chances are, Sally and Harry and Jill and Jack will never get what they dream about. They will go on playing those mental movies for themselves or talking about them to friends and family members.

Failing to live your dreams is not necessarily a bad thing. Lots of people are perfectly happy dreaming of one life but living another. The problem arises when the gap between fantasy and reality results in unhappiness or even depression. When this happens, it’s time to master plan a new life. And the first step is to establish goals.

Goals are different from dreams in four ways. They are specific, actionable, time-oriented, and realistic.

Specific : Being rich is a dream. Developing a $4 million net worth is a goal.
Actionable : Winning the lottery is a dream. Winning a foot race is a goal.
Time-Oriented: Developing a $4 million net worth is a goal. But developing a $4 million net worth in five years is a better goal.
Realistic : Developing a $4 million net worth in five years is probably reasonable. Developing a $4 million net worth in four months is not.

Goals are also different than objectives – more long-term and broader in scope.

Your master plan should be broken down into seven-year and one-year goals, monthly and weekly objectives, and, finally, daily tasks that will make it possible to achieve your medium-term objectives and long-term goals. For example:

Seven-Year Goal: Develop a $4 million net worth in five years.
First-Year Goal: Eliminate $36,000 worth of debt.
Monthly Objective : Land a part-time job netting $36,000 annually by year-end.
First Week’s Objective : Get my first job interview.
First Day’s Task: Write personal letters to CEOs of my top 10 “dream job” companies.

Okay, that’s the plan. Starting today, you are going to be performing tasks every day that support weekly objectives that, in turn, support monthly objectives that, in turn, support yearly goals that, in turn, support seven-year goals. All of this will be done formally. All of it will be done in writing.

At this point, you may be wondering: “Does it really matter whether my goals are specific? Does it make any difference if I write them down?”

Glad you asked.

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