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Steve Kennedy

What Are You Planning for 2009?

Posted Tuesday, January 27, 2009 (300 days 2 hours ago.) Viewed 24 times.

What percentage of your goals did you accomplish in 2008? All? Some? None? (Did you even have goals?)

Part of my annual New Year's ritual is to review last years plan and then outline a new plan for myself and for my business. I used to think this was a common practice. I know for certain the value of planning and can't imagine beginning any new project with out a plan for how to achieve it, never mind starting out a new year plan-free.

I have since learned that people have a million negative beliefs around the issue of planning. Still, I'm always surprised when I discover individuals who do not regard the threshold of a brand new year as the perfect place to pause and plan for the months and weeks ahead.

I am stuck wondering, How is it possible that people who easily plan out tonight's dinner have no plan whatsoever for what they will do tomorrow or next week to help them realize their most important hopes and dreams?

People spend more time planning their summer vacation than the direction of their lives.

It makes no difference whether we are planning our next meal, mapping out an itinerary to the mountains or deciding how our personal lives will progress. If we wish for even a glimmer of success in any area or any endeavor, we have to know first what it is we really want and then how do we plan to achieve it. People will say to me "I don't know what to do to achieve my goals." That is no excuse for not making a plan.

My question is always the same: "Well if you did know what to do, what would that be?" Their answers become the beginning stages of their new plan. You have to aim at something even if you hit the target and it's not exactly what you wanted you still get the valuable experience of knowing you can accomplish a desired result if you aim at it.

I'm sure you've heard the saying People who fail to plan, plan to fail. Of course no one actually plans to fail. But when I take time to consider this quote, I think the meanings and the labels we attach to the words plans and planning intimidate many people.

B e honest. Do you shudder when you hear conversations about financial plans, business plans or strategic plans? Do you cringe at the thought of long-term health care plans or investment plans? Have you ever taken the time to actually read a life insurance plan cover to cover? Do you even know anyone who has? I don't!

These plans (and reports meant to inform us) can be so laborious because they involve huge amounts of paperwork, numbers, language and strategies that baffle even the experts. No wonder the mere thought of reading such plans-not to mention comprehending and committing to them-makes us cringe. I believe we tend to confuse such complicated planning vehicles with the more straightforward plans we need to create for ourselves.

We all plan more than we realize. Even those among us who claim to be "plan procrastinators" follow a series of simple daily mini-plans. Some such plans are so routine they don't seem like plans at all. We wake; we read the newspaper and eat breakfast; we shower and dress for the drive to work. That is following a plan!

Other such plans change from day to day. If you're like me, you spend a few minutes each morning jotting down a number of things you need to get done that day (e.g., return five calls, go jogging, begin that new project, pay bills, etc.). Nothing revolutionary. It's called a To Do list, but it's really a simple daily plan.

What would you think if I handed you a plan for taking the mystery out of planning? What if I showed you a Master Year-Long Plan that's as simple to set up and use as your daily To-Do list, and if used each day would guarantee you'd move towards your goals and dreams. Would you give that a try?

Here's a formula that works great for me:

1.) Start by listing all the things you want to accomplish personally and professionally in 2009. Don't hold back; allow yourself to list everything want to make happen. This list is your Master Year-Long Plan and should include the big, important items you want to achieve. Be as specific as possible, yet broad enough to paint a clear picture of what you really want. For example, you might want to organize your family photos, create a website and new marketing materials for your business, lose 25 pounds, etc.

2.) From each category on your Master Year-Long Plan, select and list items you are willing to work on in the next four weeks. This smaller list is your Monthly To Do List.

3.) From your Monthly To Do List, select and list items you are willing to work on in the next week ahead. This even smaller list is your Weekly To Do List.

4.) From your Weekly To Do List, select and list items you are willing to work on today. By the time you reach this level, your Master List of items will be chunked down into small action steps such as, clear a spot in the basement to sort photos, surf the web for business sites to emulate and walk for 15 minutes. Notice each item has been translated into a doable action step-something you can really accomplish in the time you allotted that item for that day. Do not aim to do too much in one day (like clean the entire basement or design your entire website) or you will increase the chance you will feel frustrated and discouraged enough to abandon the whole effort. You will begin to believe in the power of small steps.

5.) Repeat Step 4 each day of the week. At the end of the week, create a new Weekly To Do List based on what you still need to accomplish. (Tip: Drop items that seemed important at first, but that you never turn your attention to. If you cannot even begin something, it may not be that important to you; you may be better off being honest and shelving it for now or letting go of it completely. Just realize the big goal you are procrastinating about will never be reached if you stop taking steps in its direction. If you are OK with that, you can move on.)

Notice that the real goal here is to begin working consistently on your plan-just to get started and to keep moving every day.You are working on one small action step at a time knowing that each small step has been inspired by your grand Master Yearlong Plan. The finish lines will take care of themselves. I love this quote by motivational author and coach, Mike Litman; for me, it says it all: "You don't have to get it right, you just have to get it going"

Before you know it, the holidays will be here again. By that time, if you've routinely followed the plan I've outlined here, you will have painlessly accomplished at least 75% of your goals for the year. And come next New Year's Eve, when conversation turns to wishes and resolutions, you will be ready and eager to celebrate your solid year-long success and start new plans for 2010!

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Time to Plant Those Seeds!

Posted Friday, October 31, 2008 (1 year 23 days ago.) Viewed 22 times.

Plant Those Seeds!

What the heck am I talking about, you ask?

The other night at dinner, I was trying to explain to my 20-year-old son why he never has any money. I said, "If you keep eating your seeds, you will never have any crops!"

My wife and the kids just looked at me as if I had two heads. I could almost hear my kids thinking, this is just another one of dad's weird sayings. I couldn't believe they didn't know what seed money was all about... especially my wife Pattie who watched these principles in action over the last 25 years in our lives.

I realized that even the people closest to me didn't fully understand this concept. Wow! Given the state of our country's economy, I felt compelled to explain it to them and to anyone else who might benefit.

My understanding of "seed money" came from my dad. He began teaching me the basics of money management when I was about the same age as my kids are now. (And I was about as interested in what he was trying to teach me then as my kids are now. Not very!) Nonetheless, this information did sink in - and when I decided to apply it to my life, it was profound. Dad always said, "It's not what you earn, it's what you KEEP that counts."

In order to accumulate wealth, you will need to apply the Law of Sowing and Reaping to your money. Here is my spin on this: once you have a small amount of money saved (seeds), start investing it immediately. As your money grows, reinvest your gains (your new seeds) into another commodity. Think about it...if you continue to consume all of your money (seeds) every week, and leave none for saving (planting), how can you expect any growth-or in this case, wealth?

It sounds so simple, yet few people ever start planting the seeds that will grow into the wealth they desire. As you begin to do so, remember diversity is key. You don't want to plant only corn; what if it's a lousy year for corn? Investing in a variety of "crops" makes more sense. I have planted seeds in real estate, the stock market and several businesses of my own. All of them have paid handsome dividends over the years. Some crops do better than others, but as long as you keep planting those seeds in a variety of places and reinvesting the growth, you will be far ahead of the pack!

Many well-educated people believe that wealth is a result of having a higher income. This is absolutely not the case.

If you want to stop having to work for money and have your money start working for you, remember: Wealth is created by investment, not income!

So... where do you start to acquire your seeds? There are only two tried-and-true ways that I know of:

1. Save your money.

Pay yourself first; the typical millionaire saves at least 10% to 20% of his/her income. Start setting aside a min. of 10% of your income and put it into a "seed" savings account. As soon as you have enough to start investing, do so. No waiting, no excuses, no withdrawing money for any other reason-invest it! Time can either be your enemy or your friend... meaning that, over time, you will either live beyond your means (see #2 below) and dig your hole deeper, or you will learn how to make your money earn you more money.

Here is a great quote from one of the richest entrepreneurs of his time:

"I have found the Midas Touch. Pay yourself first. Save 10% before making your budget, instead of after, as I used to do. I never had anything left after making my budget." ~ Andrew Carnegie

2 . Spend less than you make . No one likes to think about doing without certain luxuries or giving up things they enjoy, but if you want to thrive-not just survive-during uncertain economic times, Accept a little short-term pain (discomfort) in order reap huge long term gains. Take a serious look at every single one of your personal expenditures and then make a decision to free up some cash to put into your seed account so it can start growing. The truth is that most self-made millionaires are very frugal and only spend money on what is necessary and of value to them. That is why they are able to accumulate and multiply their wealth so much faster. For instance, I refuse to buy a first class plane ticket or pay $300 for a pair of shoes or purchase brand new cars because I think that it is a complete waste of good seed money. However, I will happily pay $15,000 a year to send my daughter to private high school to prepare her for college, because that is an investment in her future and well worth the price to me.

Reducing your expenses and buying fewer things does not send out the message that you don't have enough money. On the contrary, I believe it paints a picture of someone who is fiscally responsible and likely to have even more money to manage with each passing year.

Cutting expenses is often an easier way to save than trying to earn more money. Taking into account your time, work related costs, and paying more taxes on that money, every three dollars you earn as income only really nets you about one dollar to invest. In other words, for every dollar you can cut in expenses is worth three dollars in income!

The principles behind seed money are easy, but the application, for most, is anything but. Many people think they don't need to learn more about money management until they have more money. The truth is, if you don't learn to manage the money you have now, chances are you'll never have more money to manage.

I encourage you to think about putting together some seed money, keeping in mind the basic Law of Sowing and Reaping: it's not what you earn, it's what you keep and invest that counts. You will be well on your way to having multiple crops yielding enough wealth to enjoy life on your own terms.

Tip: In spite of the daunting headlines, there could not be a better time to invest your seeds. The notion that you should always buy low and sell high is one most would agree with, but unfortunately that's not what people tend to do when they are scared. Be proactive. L earn the ins and outs of investing so you don't have to rely on advice from others. Choose investments you are comfortable with, and soon you will see those seeds grow. Good luck to all you new farmers!

Want to learn more about how these same principles can work for you in your business?

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