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Promissory Note Investing – Planning for Success

There is no such thing as "smart money" – only smart people – the money goes where they go.

Planning – A General Overview

Becoming successful in any activity that requires education and training will also require planning. Without a financial plan – a road map – that shows you where you are now and where you intend to go, it is doubtful that you will have a successful journey.

Becoming a successful promissory note investor definitely requires an understanding of where you are now – financially speaking – what you plan to accomplish – and how you plan to get it done.

Examples:

"I now am age 30 and I want to retire at age 65 without any debts. I now have $ 20,000.00 available for investment.

"I am now age 45 and I want to retire at age 65 without any debts. I now have $ 40,000.00 available for investing. I want to use promissory notes to build my investment capital." I plan to add fresh investment capital annually. "

In each of the above examples the person's current investable funds, their current and future employment income, their current and future cost of living, their health, their family size, etc. must all be factored into their long-range investment / retirement plan.

Planning – Tailored To Your Individual Situation

Now, you should take pencil, paper, and / or computer and layout your individual plan for long-term investing success. Doing this, while not very exciting now, may be one of the most important financial exercise that you ever do. If you take your time and really apply yourself, you will go through a process of financial self-discovery and financial self-awareness that should be revealing to you. Remember-be honest and be realistic.

Force yourself to deal in specifics – -specific income dollars, specific time-frames, specific living expense dollars, etc. Do not "wing it" and rush through this exercise; take your time; be completely honest and open with yourself. If you "cheat",…

Read More…. by Lawrence Tepper

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