My SMART residual income goal setting

What does a person need do to create the amount of residual income they earn?

A great first step - decide on your vehicle(s), not necessarily the four wheeled kind, and set a goal.

The SMART way to set a goal is:

Specific
Measurable
Attainable
Realistic*
Timely

My personal goal is $30,000/month in residual income by December 31, 2010 through my real estate investments, my realtor tools and training business, my property management business and my online investments. Notice how this goal satisfies all of the SMART criteria. We had a discussion in one of my classes about the "Realistic" criteria. I think it just needs to be realistic to you.

Since my goal like $30,000/month doesn't just show up in my bank account one fine day without doing anything, (heck - you have to buy a lottery ticket to win it), I have to plan for it so I know what actions to take to reach it. When you know exactly how much you want through your business, when you want it, then it becomes simply a matter of math and focused action.

One of my businesses, as some of you know, is property management for small investors - like those who have a portfolio such as single family homes, duplexes and triplexes.

For example, if I wanted to make $10,000/month, every month, through my property management business by December 31, 2010, I would need to figure out how many "doors" or units I would need to manage. If I charge 6% on rental income and I assume that the average rental price is $1000/month, that means that I need to manage 167 units. I have 40 weeks before my goal date, so that means that I need to get 4.2 doors every week until the end of the year. Now I know about how many clients I need to sit down with every day and how many contracts I need signed.

Simply put, be SMART about your goal and take the plunge.