• 03:06:05 am on December 19, 2008 | 9
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    tram

    Finding Your Growth Engine!

    If you have a Number, then you have a mountain to climb …

    To do that, you’ll need to find the kind of transport that will carry you there … I call that Your Growth Engine:

    It’s what carries you TO Your Number – a Number that then allows you to live your Life’s Purpose!

    Even if you think you know what you are going to do (or, perhaps you are already doing it) – by that, I mean you know what work you are going to do; what business you are going to open; what stocks you are going to buy – still try this exercise … you will be surprised by the new avenues that open up for you!

    Here are the steps; they’re easy – and, I hope, a fun way to see out 2008 …

    1. Start by reviewing your Required Annual Compound Growth Rate

    … no matter what your CGR, you’ll need to find a ‘growth engine’ to drive it; this table (reprinted from that post) will tell you what your ‘growth engine’ NEEDS to be i.e. at a minimum (you can always choose a higher one, and overshoot your Number – IF you want to take on the additional risk):

    Required Compound              Investments
           Growth Rate                              Required

    4%                                                                 CD’s
    8%                                                       Index Funds
    15%                                                          Stocks
    30%                                   Real-Estate together with Stocks
    45%                 Real-Estate together with Stocks and Small Businesses
    50%+                                     Start Your Own Business

    Source: Michael Masterson, Seven Years To Seven Figures

    if your ‘Growth Engine’ is investing in CD’s / Bonds / Index Funds (e.g. via your 401k) / or solely real-estate you’ll still need a job, preferably a job that you enjoy to provide the funds you need to invest; this exercise will help you find the ideal job/vocation for you.

    if your ‘Growth Engine’ is investing in individual stocks, this exercise will help you identify individual companies / industries that you should be investing in because you have some ‘affinity’ with them already, or will more likely enjoy researching them to gain the knowledge to confidently invest.

    if your ‘Growth Engine’ is a business, then you will need to know what type of business to start; this exercise should help you identify where your strengths/interests lie, hence what type of business is most likely to ‘fire you up’. 

    2. Next, I suggest that you go back and review the questions that you asked yourself to help you fire up your creativity when you first started looking at Your Life’s Purpose; in case you want to redo them (or you can’t find your notes) here are those 10 Questions again:

    Q1: What do you want your future to be like?
    Q2: What are the the things that you value most in your life right now?
    Q3: How would you like to (one day) be able to describe your life to your grand-children?
    Q4: What do you dream about? What do you daydream about?
    Q5: If you have done things differently, what would you be doing right now?
    Q6: If you can do things differently, what would you like to be doing in 5 years? 10 years? 20 years?
    Q7: What is stopping you from doing things differently?
    Q8: If you no longer HAD to work what would you be doing with your time? When would you like to start doing it?
    Q9: What is missing from your life right now?
    Q10: What are your greatest strengths and weaknesses?

    3. OK, now that you are (hopefully) creatively ‘fired up’ and Your Life’s Purpose is back at the forefront of your mind, it’s time to Take Inventory:

    a) Take a blank sheet of paper, turn it sideways (landscape) and write down the following column headings:

    EARN (i.e. how do you make money, or WANT to make money: past/present/future?)

    SPEND (i.e. how do you spend money, or WANT to spend your money: past/present/future?)

    ABILITY (i.e. what are you good at? what do you wish you were good at? what sparks your creative juices? what do you enjoy?)

    DO (i.e. what are your hobbies? qualifications? jobs (unless already listed under ‘earn’)? what would you WANT to do, even for ‘free’?)

    b) Under EACH of the above headings, write 4 to 6 one/two/three word answers (eg teacher; clothing; writing; wood-working; etc.); let the ideas flow and take as much/little time as you need

    c) Once you’ve completed the above, take another sheet of paper and write the following numbers across the page (landscape, again): 4, 3, and 2. Now, under each, transfer your answers from the first sheet of paper, as follows:

    4: Write the items (if any) that appear (at least in some sort of similar/related form) across all four columns in the previous list; you may not have any.

    3: Write the items (if any) that appear across exactly three columns in the previous list; you may have only one or two, if any.

    2: Write the items (if any) that appear across exactly two columns in the previous list; you will likely have a few.

    These, starting with the 4, then 3, then columns are where you will you find your most fertile business/investing ground

    d) Also, try combining your your answers (especially those that combine a future WANT with an ABILITY.

    Let’s say that you’re good at sewing and want to do some writing, then we have the possibility of starting a writing/publishing career, perhaps starting with a blog on sewing.

    That’s it … try this out, see what it throws up!

    Remember: your list may not be totally aligned with your Life’s Purpose … what we are looking for is the ‘growth engine’ that will get you to your Number … THEN you will be able to work on your Life’s Purpose!

    Of course, if all stars do happen to align, you are one of the lucky ones 😉

    Enjoy your Xmas and I’ll ‘see’ you back early in the New Year!

    [AJC: I’m taking a short break while our 7MITs – and, you, I hope – work on these exercises…]

     

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