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Plan to Invest:
How to develop an overall Investment Plan


On this page you will learn about my personal investment plan, and some principles for you to set up your own.


I recently read that the average American pays about $2.50 per working hour to service credit card debt. For someone earning $10 per hour, this is a huge percentage. Imagine taking the $3,500 per year that you pay in interest on your cards, and investing it in a credit spread trading strategy, at an average ROM of 15% per month. You would get your first million in less than four years!



Every person reading this page will be living, working and investing in different circumstances, with mind boggling possibilities for variation. For example:

  • One person may have a full time job, but invests part time;
  • Another may run a small business, with investment on the side;
  • Yet another may invest full time, as a business.

However, very few of us get to start full time investing right away - we just don't have the capital. So, what to do? You need to develop your own long term Investment Plan - one that will allow you make changes in your circumstances and lifestyle. Every plan must be different, but here are some principles:

  • Don't quit your day job until you have built up sufficient capital to weather the inevitable draw downs that every investor has to go through. Don't live in the stupidly false hope that it won't happen to you - it will! Take this as a given, and plan for it!
  • Start with a relatively low risk, but steady investment strategy (like selling options). Save the windmills (like buying options) for when you have the time to really focus on your investments. Once you have built up your capital with a relatively safe (and boring) strategy, start branching out into more fun stuff!
  • Add an extra leg to your income generating efforts. If you have a full time job, then start a small business on the side - one that can run itself once you have set it up.
  • Don't get obsessed with investing. Invest for a purpose, not just to get rich. Use the money to GET A LIFE - preferably with your family. The classics are too full of stories and histories of people who end up hugely rich, but divorced, abandoned by their children, rejected by their friends... and so on. Investing can swallow a person up, and unless you keep a large perspective, you can drown.
  • GET OUT OF DEBT! Why pay interest to someone else, when you could be investing that money. I am talking about all kinds of debt....credit card, mortgage...everything! Add up all the interest that you have paid this year, then work out how rich you would be if you had taken that money (instead of making someone else fat) and invested it in plan that gave you 10% per month return. The result will shock you!
  • Be generous!!! History shows that generous people are always much better off and much happier than the other kind.


Here is my personal plan:

  • I have a full time job, because I do what I love and I love what I do, in a delightfully exotic place. It doesn't pay hugely, but I look forward to Mondays MUCH more than I look forward to Fridays. From my income, I rigidly do the following:
    • I give 10% to a charity or for humanitarian work
    • I give 10% towards my investment portfolio
    • I save 10% for special purchases or vacations
  • I have set up a small business that took quite a lot of work to set up, but is now running with some input every week, but not a crippling amount. I use the profit from this business as seed money for investing (i.e. I have now two seed sources for my investment portfolio).
  • I have a diversified investment plan, which includes selling option spreads; trading options; forex; buying into funds with regular dividend payments; an “anti-terrorism profile”; and others.
  • I have cleared all my debt. I killed my mortgage in seven years. I have cancelled all credit cards and only have two debit cards. I pay interest to no one! That millstone is GONE! If I want something, I save. (Apart from anything else, this teaches our kids patience!) I leave deficit spending to the government.
  • I have set myself an investment goal. When I have reached that, I will ease off a bit.
  • I have specifically scheduled time out with my family, and I go on a date with my wife every week (every Tuesday evening, if you want to know). I take no less than four weeks vacation every year, and we often use it to do something adventurous with the kids. Two years ago, we all went to an island off Malaysia and did a scuba diving course; this year we did an extremely rustic boat trip down the Mekong River from Cambodia to Vietnam. It was such fun that we may do it again next year...or go donkey trekking in Australia....or a biking trip in Germany.....or something else may come up.
  • I did this by starting with $1,000 as my first investment, most of which I lost because I didn't know all the stuff on this site. That was my school fees. I built up again, and now have no need to look back.

After all....

What is the point of getting rich if you cannot enjoy the fruits of your work?


Use your money to GET A LIFE! Don't let money become your life.



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