Sheryl Sutherland says implementing your investment plan is the only way you are going to get to your goal. She has twelve steps on how to do it positively

By Sheryl Sutherland*

“Ideas are useless unless used. The proof of their value is in their implementation. Until then, they are in limbo.”
~ Theodore Levitt

Without implementation there is nothing. Understanding without action is nothing more than an academic exercise. Once you have established your biases you must act immediately, or the opportunity will be lost.

‘Opportunity doesn’t knock once. It’s pounding on the door, tearing off the roof, and kicking in the windows all the time. It’s a matter of perspective, of being willing and ready to see it.’

Implementation – the key to everything; steps.

1. Plan specifically and well in advance – keep your plan available. If you are specific and organised and act on plans, you will avoid loses caused by spontaneous decisions based on others’ opinions.
    
2. You alone are responsible for the success of failure of your plan. You must assume responsibility and not blame advisers, friends, or the media for errors. This will help you avoid emotional decisions and, more importantly, you will learn that you are in control. Consistency, not genius, is the single most valuable key to success.
    
3. Never hope your investments will give you a massive profit or fear a massive loss. Both these attitudes lead to unrealistic expectations, emotional decisions, and negative attitudes.
    
4. Monitor your portfolios performance – feedback of results is important. You need to know that your plan is working for you. You will only be able to ascertain this if you keep a record and, thus know how well or how badly you are doing. You need to know if poor results are caused by you selection of assets or market performance.
    
5. Attitude is your greatest asset in investing as in ‘real’ life. The only way to combat the negative effects of losses, interference by others and errors of judgment is by the maintenance of a positive attitude.
    
6. Cultivate positive and effective relationships. We are influenced by those around us. If we surround ourselves with negative people, we will not be positive. If we associate with those who are highly motivated, who seek to achieve, who have ambitious goals and who are willing to forge ahead regardless of obstacles, then we will acquire similar drives.
    
7. Don’t take your portfolio to bed with you. By this I mean don’t allow your financial life to have too much influence in other areas of your life. This can be destructive. Your investments are a means to an end – they are not a way of life and should not dictate your every move. By being too close to a situation you sometimes can not see if for what it really is.
    
8. Enjoy your money – spend some profits, save some profits. You must experience the positive feeling of using profits to acquire some of the things you want.
    
9. Avoid overconfidence – it could be your greatest enemy. There are good times in the market, and there are bad times. But just as you should not allow the bad times to bring you down, you must not allow the good times to give you a high. Either of these emotional extremes can impair your judgement and you will be either too brave or too timid. Each loss is a negative experience, but not a totally destructive defeat. Similarly, each profit should be taken in your stride.
    
10. Your next goal should always be in your sights. Once you have achieved one financial goal, move on to the next – your financial plan should have these goals incorporated at the outset.
     
11. Be mentally prepared for mortgage rates to move against you, your portfolio to drop 25% or for many other financial disasters that can afflict us.
     
12. DO NOT PANIC.

*Sheryl Sutherland is director of The Financial Strategies Group, and author of Girls Just Want to Have Fund$ – Every Women’s Guide to Financial Independence, Money, Money, Money Ain’t it Funny – How to Wire your Brain for Wealth, and co-author of Smart Money – How to structure your New Zealand business or investments and pay less tax. You can contact her here.