Why Planning Is Key to Wealth Building

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the key to wealth buildingI’m not sure when I first realized the value of a proper plan. It may have been when I was 16 – working as a cook in a restaurant. I knew a table of seven all had to have their food ready at the same time. This way the food would all be hot, the serving window for waiters wouldn’t be cluttered with my half-ready entrees and the chef wouldn’t keep asking me, “Is this the entire order?”

Or maybe I learned to plan when I decided to take 15 college credit hours one summer. While taking two internships. In two different cities.

I don’t know when I learned to plan but I now know that rarely does anything good happen without a plan. Think about it. What successful business has been built without a plan? What beautiful home has been built without a plan? What billionaire accidentally got rich? Stuff doesn’t just happen. Planning is key to wealth building.

Planning allows you to predict the future. You are aligning yourself with what you want – sure enough, you pretty much always get it. Yes, you still have to work for it. But once you have a plan, work is easier. It’s just a matter of working the plan. If you’re trying to work sans plans – you may be in for a nightmare.

Planning is Key to Wealth Building

I don’t want this post to get too heavy or too abstract. So let’s look at the real-life instances when planning helps save money and build wealth:

Plan Your Shopping

I could use a new laptop. My current machine is getting a little glitchy and I really want a full HD display.

I developed a plan.

I researched online to find a laptop which meets my needs and comes in at the lowest price. I’m not brand loyal because frankly I get annoyed staring at the same laptop brand for 4+ years.

I then went to Best Buy to try out the machine and buy from them if they had any open box specials. They did not. So I took my plan to the internet.

I’m now looking for the exact machine I want via eBay. I know how much I’ll spend. I know how soon I want to own one. Everything is planned to perfection. And you know what? I’ll get the exact machine I want and when I want it.

When you plan your shopping – you avoid overspending – or worse – buying something you forget about after a week. Shop with purpose.

Plan Your Career

Planning your career is a massive key to wealth building.

If you plan your career, you’ll be able to invest in yourself in the most effective ways possible. This means you’ll receive the proper education. You can then take a job that may not pay well but it introduces you to the right people. After all, you’re thinking long-term. You’ll make up the money later. You know to which people you’d like to have in your network. You discover who’s job you want (and will have) in ten years. Everything you do, you do with purpose.

You Can Buy a Home Much Sooner

There’s a lot of debate about buying versus renting a home. But at the end of the day, I think everyone can agree that buying is superior. But buying only reigns supreme when you know what you want and where you want it. And the sooner you know these things, the sooner you can buy and the sooner you can begin paying your mortgage and not someone else’s.

I Used to Think Planning Was Stupid

You watch movies where it seems really fun to act in a ‘spontaneous’ manner. The main actor may find his way onto a beautiful ship (Titanic) or find himself traveling across Europe with his friends (Eurotrip). But in reality, being spontaneous usually ends up like the ending of Thelma & Louise.

Don’t wreck your future by living without a plan. A little spontaneity is great but the long-term game is one best played with a plan. Again…planning is the key to wealth building. Practice it. Live it. Love it.

This post was written by our staff writer, Will Lipovsky. 

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Battle of the Mind Money

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

2 Comments

  1. “Failing to plan is planning to fail.” Yep, you’ve got to plan to become wealthy. Not sure where I heard it before, but “One Must Have an Interest in Money to Have Money.” I totally agree.

    Great article. I really like your lead in about the restaurant job. Pretty cool, I must say.

    Thanks for more great info!
    Keith “Shin” Schindler recently posted..Financial Literacy – Something in the Works

    • Sometimes people think they’re better than others when they say, “I don’t care about money”. In reality though, this statement says, “I’m irresponsible and don’t understand how life works at all…”


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