Some days ago I found a document containing my signature and the one from a friend of mine. Both of us signed the document ten years ago. It was in August 2014 when I was living in a shared apartment in Dusseldorf. During that time my friend was living in Cologne. He had dropped by at my place as on the next day he intended to take a flight from Dusseldorf to Mexico. So on the next day I brought him to the airport by car.
We spent the day prior his departure talking about our current tasks. Or better say: The tasks which we had chosen to make them a priority in our life.
Our priorities
During that time one of the main interests of my friend was in creating websites and monetizing them. My main interest was in making money at the capital markets. So in August 2014 we agreed to write down specific goals. My friend’s goal was to generate a monthly revenue of 1,000€ until June 2015. This means until June 2015 he was given time to make at least one month generating a revenue of 1,000€. My goal was to double a paper trading account from 1,500€ to 3,000€ until June 2015.
Paper trading means that the money is not real. Based on that it was a requirement that I only use one single account. This means if the 1,500€ had dropped to zero I was not allowed to start again. We signed the document at the end of August 2014. This means that I was given nine months to generate a profit of 100%.
To summarize it quickly: Both of us achieved the specific goal. At the end of June 2015 we had fulfilled our contract we had signed in August 2014. What I still remember is that during that time frame both of us enjoyed the fact of having a specific goal in mind. I still determine this as one of the main driving forces which enabled us to succeed.
What to learn from that challenge
And this leads to my current situation. I recognize that I need to set a specific goal again if I want to achieve my financial goals. Based on that I intend to create an account containing 4,000€ of real money and to turn it to 8,000€ within the next 12 months. If I repeat that process for eight times I will become a millionaire.
I assume that most people are able to follow the simplicity of that approach. However in contrast I additionally assume that there’s only a minority who turns that approach into action. As simple as that approach sounds, it seems that it requires a strong settled and well shaped mind underpinned by strong mental capacities to turn that approach into action. Probably these requirements are essential due to the following fact:
Implementing that approach is very risky. Chances are against me.
Focusing on the essential step
However following that clear approach sounds more suitable rather than trying to become a millionaire by coming from zero to 1,000,000€. The point is that in the past I did not implement some investments as I expected the estimated profit around 1,000€ per investment. By only generating 1,000€ of profit I will not become a millionaire. So I did not implement the investment. I simply thought it’s not worth it.
But what it’s worth is to make it from 4,000€ to 8,000€ within one year. If I had have this clear goal in my mind earlier I’m sure I would have implemented some of the 1,000€-expected-profit investments. Because there would have been a sense in implementing them. The sense would have been to achieve 8,000€. If I achieve 8,000€, I simply have to repeat that process for eight times. Then I will become a millionaire.
In no way it’s my priority to become a millionaire. I’m not growing rich yet. That’s why currently I feel very relaxed. Moreover it’ my priority to execute a plan with having a clear goal in my mind. And that goal is to turn 4,000€ to 8,000€ within the next 12 months. If I achieve that, it’s fine. By having that goal in mind there’s no need to generate more profit during the next 12 months. So for the duration of the next 12 months I do not need to waste any thoughts on how to become a millionaire. I simply have to focus on turning 4,000€ to 8,000€. Knowing about that fact currently leads to a deep inner calmness.
Why it´s possible
During the past there have been several stocks which have doubled in price during a time frame of between three and 12 months. And I’m pretty sure that for the next ten years there will be hundred more stocks that will double in price within a time frame of between three and 12 months. So for the duration of the next 12 months I simply have to identify a stock from which I expect that stock to double in price during that time frame. I simply need to invest 4,000€ in that stock and sell my shares when they are worth 8,000€.
The risk
The risk is to loose 4,000€. It will not be nice to loose that amount of money. But I will survive. The point is that I already know how it feels to loose 4,000€ due to an investment which did not generate the expected profit. I’m still alive. In addition my life will not significantly change with having 4,000€ less in my pockets. Knowing about that fact provides me with the confidence that I will be able to implement that risky approach.
The main reason why I intend to implement that risky approach is driven by the fact that in the past I implemented several investments which led to minor profits as I simply invested a minor amount of money. I never implemented a high risk approach. As I did not become a millionaire yet I simply have to amend my current approach. It’s not my intention to grow rich quickly. It’s my intention to turn 4,000€ to 8,000€ within the next 12 months.
Holy words
I mentioned that on the one hand it will not be nice to loose 4,000€. On the other hand it’s also not nice to permanently see several stocks doubling in price within a time frame of between three and 12 months and not being invested. Based on that currently I’m thinking that I prefer to loose 4,000€ rather than missing these chances.
So in my mind for now I’m signing a new contract with myself. It’s the same like I did with my friend ten years ago. And that contract simply contains one specific goal: Turning 4,000€ to 8,000€ within the next 12 months.
Any thoughts on this can be sent privately to send@realthoughts.me or publicly via the comment function below
Martin