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Steve Burns is a stock trader and it appears that his goal is to generate a net 1% return on his trades each month.
I’m sharing this because this is different than how most people think when they invest. Most people invest to make big gains quickly. A good example might be someone who flips real estate. They want to get a big pay day quickly.
Smarter people don’t concern themselves with fast, big gains. Instead, they work to generate small consistent gains. They allow these small gains to compound on top of each other. They arrange things so they profit from the passing of time.
Notice how a 1 percent gain each month for twelve months doesn’t equal a 12% annual return. A 1% monthly gain actually provides a 13% annual return due to compounding.
Smarter people focus on creating a system that provides consistent small gains. They don’t swing for the fences. They don’t take big risks. They take small calculated risks and walk when they’ve hit their goal. They don’t allow greed to take over. They apply strategy so they never have to walk off the playing field.
This 1% idea can obviously be applied to other areas of our lives.
– Losing 1% of your body fat each month.
– Increasing your strength by 1% each month.
– Increasing your monthly recurring income by 1% each month.
Or you could set a goal to generate ONE new recurring income stream each month. At first, it doesn’t seem like you’re making much head way with these small goals. However, things change very quickly as time passes.
ONE new recurring monthly income stream blossoms into SIXTY monthly income streams in just five years.
More importantly, your skills compound, too.
Who do you have to become as a person to create SIXTY new income streams? What systems do you have to put in place? What do you have to learn? What adversity do you have to overcome? What resourcefulness do you have to develop?
I’ve said it before and I’ll say it again…
Learning how to create new income streams is the single most important skill anyone can develop.
So why not set a goal to create ONE new income stream each month?
The cool part is you don’t have to create large income streams to benefit. You can start small by creating a new $30 or $50 monthly income stream. Just as 1% per month return compounds dramatically, so would your small new income streams, as long as you add ONE new stream each month.
If you’d like to learn to think and act like a Cashflownaire, become a member here:
– Vince & Mike
P.S. We are NOT stock traders. We are Cashflownaires and have focused entirely on generating cashflow from income producing assets and businesses.
We share this entire investment plan in our free book, The Path to FU, available here.