How to develop your PLAN

Took the whole day to come up with the three parts, but here it is:

Here is MonstaFlex's Plan Development:

Part I.

CORE VALUES (What Is Important To Me)

- Freedom
- Happiness
- Kindness
- Friendliness
- Accepting
- Growth
- Patience
- Diligence
- Humility
- Health
- Safety
- Loyalty
- Honesty
- Charity
- Family

Things I Like to Be Around

- People who are masters at their tradecraft, so I can be just like them
- Friends/People who have similar Core Values as Me (Accepting/Friendly/Kind/Honest)
- People who help me when I'm down
- Non-conformists/people who do not follow everyone else (Getting on the Fast Lane > Staying on the Slow Lane)
- Friends/others who duel against each other in video games/games in general (like Chess/Connect Four)
- Cold environments like the indoors/the apartment/stores/malls/inside cars/trains/subways
- Brightly lit rooms
- Water/Cold Sugary Bevereges
- Computers with a fast internet connection
- Cats/Dogs/Birds/Other Animals/Pets
- Air Conditioners

Things I Like to Do (Activities)

- Surf The Web
- Being around my family
- Teach my family/friends what I know, even though they make fun of me because they do not see any results
- Occasionally play addicting video games
- Reading/Listen to Audio Books
- Learning new things/Trying out new foods
- Research on (spiritual/success/money) Products/Methods/Reviews
- Help Other People with their problems
- Teach/Give Advice
- Write/type reviews/articles
- Meditate
- Edit/Redit my posts/e-mail to make sure it makes sense
- Recheck posts/e-mail to see if someone/person I sent it to responded
- Make sure I always have a sufficient amount of money as a security blanket, or else I do not go out
- Buy small toys/gadgets/video games/for entertainment
- Eating/Sleeping
- Waiting For/Receiving Packages
- Sometimes play Texas Hold 'Em/Card Games, weightlifting, play basketball, biking, golfing
- Dream about bigger positive situations I want to be in/be by myself and just think about life
- Be around/take part of creative arguments/debates/conversations
- Walk around/sit down in the park or street and just day dream
- Watch funny/dramatic/inspiring/positive/upbeat videos/movies/television shows online



Part II.

Tracking Down Expenses

Water $5
Food $5 (Fruits/Instant Noodles/Crackers)

$10 Weekly at best. So about $40 a month, and $480 a year.

That's about it. It all depends if my parents are tight on money ranging from $5-$15 weekly. Sometimes I don't get anything at all. Other times if I want to buy a book that I am interested in or some program that I want to join, they'll give me $75 at most. Weird part is I'm used to this way of frugal spending, because I have 4 brothers and sisters (2 bros, 2 sisters, and I'm the oldest). I don't drink, drive, or watch movies each weekend. I bought my clothes at Footlocker (6 Plain T Shirts for $20!) My parents own the apartment, and they basically spend their money on the food/laundry/gas/bills. I guess the reason why my parents haven't kicked me out yet is because I don't cost much to keep around...oh and they "love" me.



Part III.

Objects I'd Grab In a Fire

- My Holosync CDs (For Meditation) w/ CD Player and Headset.

Inventory

I'm with NerdSmasher on this Part. All the stuff is really my parents...so to sum it up. Just give me a computer with fast internet and a desk/chair for writing/reading, air conditioner, place to crap and piss/take a shower, cold water, good bed for my back, and some noodles and I'm good to go.

Placeholder for more detailed response.

Great start.

-Russ H.

__________________
"Control everything. Own nothing." -John D. Rockefeller

"Don't confuse motion with action" -Ernest Hemingway

Hmm ok.. I'll jump in and see what happens. I think I actually already lead a pretty simple life in terms of expenses and inventory of stuff and regarding core values and things I love to do I've been inspecting myself with help of some advice from Brian Kim (briankim.net) and Napoleon Hill's "Think and Grow Rich" so I did the list of desires, picked one, did some desire and faith boosing exercises and am now in the "primary plans and actions" stage.

My goal is to start making $5000 a month with my web publishing business by September 9, 2009 (yeah I picked a 999 date ). In this first planning stage I'm coming up with ideas and candidate web projects which I have to pick one which I'd ride to this goal.

Now..

Core values

freedom
independence and privacy
clarity of thinking
spontaneity and flexibility
open mindedness
kindness and love
tolerance
financial security
achievement
integrity and honesty
growth
music
writing
technology
wealth
rich mind
design and creativity
escapism
thinking
curiosity
knowledge
convenience
serenity
vision
safety
power
passion and motivation
advocating
pursuit of a cause

Things I like to be around

My computer.
Inspiring people.
Out on a nice starry night
In a techy environment.

What I like to do

Writing about my interests and beliefs.
Thinking.
Listening to trance and ambient music.
Building online projects..
Debating or discussing
Making electronic music (though haven't done in a while)
Watching movies, especially scifi
Partying (occassionally).
Playing 3D games.
Tinkering with software (trying programs, tweaking etc.)
Exploring the web, watching videos.. for stuff of interest
Chatting on IRC.
Building computers.
Help others in self liberation and self growth..
Designing logos and graphics
Watching the night sky.
Throwing a party (Never done, but would like to do).
Shopping for tech stuff, especially computers..
Talking.. (whe I get a chance)

Monthly expenses

I'm living in a cheap flat with my sister (in Europe, Croatia) and this is probably lower than most americans are used to. :P

$435 a month. My sister covers food and sometimes water/electricity bills, but if not (water/electricity) then it's $540).

This is slightly variable though, but I'll try get it in a habit to track my expenses and thus be more precise about it. I don't spend much anyway so.. it shouldn't be a problem.

Basic needs

This flat.
Food.
Electricity, water, internet, phone.
This computer. (needed for my biz).

I make a basic living from my online biz, but as mentioned above I'm looking to drastically grow it in the coming year.

What I'd need to grab from a fire?

My hard drive (or whole computer since it's actually quicker, disk has to be unmounted).
My wallet and maybe my mobile phone. They're small.

What would I want to grab?

My computer, speakers and LCD.


As a web publisher and with most interests revolving around internet and computers, or pursuable through them, my computer is most of what I need to be happy. Call me a computer geek if you will, I sort of am!

My inventory

I should take a little time off my weekend for this, but it's really not much stuff. Still there are a few drawers here which might contain a few items I don't really need, though I did organize them recently...

Cheers

Excellent work, memenode.

Just curious: You've set your monthly goal at $5,000, but only spend about 1/10 of that currently.

Do you think you'll be tempted to stop when your passive income hits, say, $600 a month?

Or will that only give you more motivation?

-Russ H.

__________________
"Control everything. Own nothing." -John D. Rockefeller

"Don't confuse motion with action" -Ernest Hemingway

Thanks Russ.

Actually, I already hit $600 on average.

But it would motivate me further because I want to be able to do more things, from material stuff like buying a car, deciding on a place to live in the world and buying a house there, investing into even bigger ventures that somehow help the causes I believe in etc.

What I spend now is only for quite a basic living. I don't go out much, don't spend much on extras. For example, I'm postponing buying a new touch screen mobile phone, a bigger SATA hard drive and am even conservative on domain name and web hosting expenses etc. because I still don't feel quite so secure financially. What I make is basically "just over" the basic line, not to mention that it's on the old web sites which I've lost some of the interest on (so I'm now attempting to create something new and more motivating yet more profitable).

Also the global economy isn't in a really good shape and the prices are going up while the dollar value is going down (generally).. so I need a lot more to secure myself, let alone get to the point of being able to save for big things.

And I don't want to EVER take a loan. I've never been in a real debt and I intend to keep it that way. I've heard too many horror stories about loans and I just don't feel good knowing I owe money to someone. If I'm buying a house, for example, it's gotta be from savings, or a payday from some investment. I don't want a big house anyway.

By being afraid of loans you are missing one of the most powerful investment tools available: Leverage. This is what helped a few here to make millions. Instead of being afraid of debt maybe you need to study it a little bit to see when it is right to use it, and how.

Hmm, alright, maybe I should consider that at some point, but something tells me that now isn't the right time to think about loans. :P

I mean, if there is a chance to increase my earnings without taking any loans then that seems to be the right way to do it. I suppose somewhere down the road though, once I've lined myself up better financially so that I have an income stream that can back up my ability to pay back what I borrowed, borrowing might be something to leverage, but I'd be very careful with that and start with smaller amounts.

But for now, it seems right to avoid it.

Thanks

Hi, Glad to join this thread, been following it for one entire year now!

I’ve seen this topic develop over the internet a few times now and must say this thread proves a shining example. Love that the thread isn’t rushed. Also poignant – to me -that the thread began right before 9/11 and is why I am just posting now. [September, Fall, Change in the air, Back-to-School, new beginnings.]

The Exercise
I’ve actually gone through this exercise, In Full, about three cycles now and in part, more or less, any number of times. The Exercise transformed, for me, into a fine method for information processing and a repeatable and scalable forum for critical thinking and systems analysis.

First started The Exercise, formally, in early September 2000 – mostly as a result of having a few “A-HA” moments and reading a few “A-HA” books starting in 1998. In late 98 I finally came out of a haze and asked “Why am I broke and in debt”.

By early September 2001 I actually had written out my core values and what I wanted to accomplish in life in fair detail. And a couple days later, 9.11.01 happened and made me reconsider: What really changed? Were my goals still the same if everything else changed? Did anything, or would anything change – really change, down to fundamental makeup? Did I change?

ACTION
Well 911 came and went and there have certainly been many more significant changes in my life before and after. There’s the rub, your goals do change over time because YOU change and YOUR position relative to everything else changes. Once you really learn what The Exercise does FOR you, then you’ll continue to implement the lessons and resultant skills across various other platforms and applications and grow what YOU can do for OTHERS.

2. And then my fiancée and I completed The Exercise on our COMBINED values, actions, expenses, goals…

3. And then I repeated (and continue to do so) The Exercise for my financial and professional endeavors.

The Exercise continually enlightens the consciousness as you delve into yourself and REALLY answer the questions in a forthright and meaningful fashion.

For those that started The Exercise, but got bogged down (there are a whole host of reasons why that happens) don’t get discouraged. Taking stock of one’s emotional/physical/social/financial and spiritual life isn’t’ for the self-absorbed or uninformed or those dead-to-the world and themselves.

Indeed, you awaken or revisit those places in yourself which may have lied dormant for quite some time.

Like many of you, when I just woke up and initially began The Exercise I was amazed at how far deep in debt and denial, and just plain ignorant, I had been.

And for those of you lurking on the thread, or who have started but hit a roadblock, stopped progress and now are dejected, take heart – it happened to many of us.

In fact, I was first challenged to write down my goals for the first time in 1991. I didn’t do it and actually held the temerity to tell the coach who challenged me that I would finish it and provide to him soon. And I never did…

It took the first “A-HA” moment to jar me out of the stupor and I didn’t truly write my goals out ON PAPER for the first until late 1998. [On Paper proves important. The chasm between dreaming and establishing goals simply comes down to putting pen to paper – a small matter but a Large Step. That gulf between dreams and goals we now know to call ACTION.]

After I started tracking my expenses (to the penny) on Jan 1, 1999 I REALLY got into it. As a Point in Fact, I saved EVERY receipt throughout the year and on (per recall) the first day of September that year I actually took a brown paper bag full of those receipts to Burning Man and threw it on the fire pyre and watched a year of consumption go up in smoke to the drone of voices, drums, techno and sights and sounds I’ve never experienced before or since.. .

At that moment I realized how those few ounces of paper actually weighed a Very Heavy Load on my psyche and pocketbook.

RESULTS
The goals that my then fiancés (now wife) developed are still in my briefcase just a few feet away. And yep, I still have the year’s worth of notes documented EVERY PENNY that I spent, in my archives.

I’ll spare all the details from this post, but suffice to say I WITNESS HERE that it worked for me, both personally and professionally. As my financial endeavors have developed, blossomed, struggled, failed, and rose again, those skills and abilities – and the self honesty – it takes to realistically employ The Exercise improved practically every facet of my life since it forces personal accountability which then allows accountability to outward people and goals.

Hence, at this point I personally no longer feel the need to write out my goals or expense in this thread. Over time I have built a number of systems to continually do so and implement in the Big Four financial concerns: 1. Real Estate, 2. Internet Business. 3. Investing and 4. Career.

Indeed, I have collected a fair amount of The Exercise results, thoughts/notes/analysis etc. and shaped them into my blog which goes back to the beginning of 2000 (probably over 500 pages now), which is just part of the website I developed, and have also formed the outline of a book on personal finance that I’m writing. For that matter, many of the lessons I have learned I have shared with many folks in my life and the posters at numerous forums. In fact I’ve read many posters here since I joined the RD forum in early 2004 and continue to follow the development over at this site.

And of course, The Exercise continues and the opportunities to share lessons learned forms a dandy reason to establish This Forum, and This Thread.

The way I look at it, if you stop (or never start) posting here, may it be because you are posting/acting/developing EVERYWHERE else….

Time to rejuvinate this thread....

Since Russ is holding out on sharing the NEXT steps of the Plan until more people participate, I figured I'd jump on board and contribute...


My Core Values

- Adventure / Discovery
- Thrill seeking / Risk taking / Anything that gets the heart pumping and makes you feel truly "Alive"
- Happiness
- Involvement of friends / family in activities I enjoy
- Consideration & Respect
- Positive attitude
- Being around people that motivate / inspire me
- Trust, honesty, & loyalty in relationships
- Personal growth
- Doing your best
- Self-reliance
- Providing security for family
- Leisure
- Faith
- Freedom
- Achievement
- Humor


Things I Like To Be Around

- My wife and kid
- The ocean
- The beach
- Sunshine
- Passionate / motivated / inspiring people
- New discoveries / New journeys
- Fireworks
- Laughter
- Puppies & children


Things I Like To Do

- Travel
- Road trip
- Go on a cruise
- Drive
- Sex
- Play on the beach / In the ocean
- Eat good food
- Laugh / Make friends & family laugh
- Almost any activity / sport that's thrilling / exciting
- Earn money without having to labor for it
- Wear fashionable clothes
- Sit outside on a clear night and gaze at the stars
- Spend QUALITY time with my wife and son
- Help friends with (basic) personal financial planning
- Tour new homes
- Learn, Grow, & Discover
- Act like a kid again, playing together with my son

__________________
"Successful and unsuccessful people do not vary greatly in their abilities.
They vary in their desires to reach their potential." - John Maxwell

How little can I live on? Well, if I were to go to the extreme and sell my SUV, house, and most material possessions, like Russ suggested in the "Taking Action" thread, and go with a completely MINIMALIST lifestyle - I figure my expenses would cost me about $1,500 a month. (But then, of course, I'd have quite a bit of extra cash available to invest, not only from the sale of my possessions, but also from my dramatically reduced monthly expenses - which, I assume, is his point in this exercise).

Here's how I came up with the $1,500 a month figure:

Car - Spending $4,000 on an older, but dependable, car. Monthly Payment: $125 (on 3 yr. loan)
Mobile Home - Find a bargain for $10,000; it's not fancy but provides basic shelter. Monthly Payment: $450 ($250 month loan payment + $200 month lot rent)
Health / Disability / Life Insurance - $180
Auto Insurance - $45
Maintenance - $40
Clothing - $25
Food - $300
Gasoline - $125
Electricity - $80
Entertainment - $40
Household Necessities - $50
Phone - $40

Total - $1,500

And that would cover pretty much all my needs for "survival existance".



My average monthly expenses are quite a bit higher than my "survival existance" expenses I budgeted in the above exercise.

Mortgage - $787
Car Payment - $0
Health / Disability / Life Insurance - $186
Auto Insurance - $72
Phones / Internet / Cable Services - $183
Electricity - $74
Heating - $42
Water - $35
HOA Dues - $11
Trash - $22

Groceries & Household Goods - $427
Dining Out / Fast Food - $389 (I should easily be able to reduce this down to $150)
Entertainment - $111
Gasoline / Auto Maintenance - $227
Gym Membership - $45
Clothes - $40
Miscellaneous - $75

TOTAL (AVERAGE) MONTHLY EXPENSES: $2,726


And since I know Russ has been hounding everyone to tally up your expenses "down to the last penny", I included my actual expenses for the month of September (from using my debit card for all purchases - and this is how I came up with some of the figures above). But keep in mind that I had some highly out-of-the-ordinary expenses in September (mainly the clothing and Amazon.com purchases) - but as Yves had said, unordinary expenses can creep into your budget each month.


September Expenses:

Mortgage: $787.54
Health / Disability / Life Insurance: $185.80
Auto Insurance: $72.25
Phones / Internet / Cable Services: $183.26
Electricity: $74.42
Heating: $41.80
Water: $35.52

Groceries and Household Goods: $427.43
Doctor Visits / Medicine: $44.77
Dining Out / Fast Food: $389.42 (holy crap!)
Amazon.com Purchases: $84.16
Annual Credit Checkup: $23.95
Entertainment: $111.45
Gasoline / Car Maintenance: $226.83
Gym Membership: $44.59
Business Expense: $95.00
Clothing: $265.30 (crap, again!)

TOTAL EXPENSES FOR SEPTEMBER: $3,093.49 (yikes)


So, what did I learn from this excercise? The biggest thing probably would be the fact that I can get by with significantly less expenses (just how I convince my wife of the fact is another story). And also, although I'm certainly not living beyond my means - I'm also NOT saving an additional $18,000 a year that I could be if I reduced my expenses by $1,500 a month (as I could by keeping the "survival existance" budget).

__________________
"Successful and unsuccessful people do not vary greatly in their abilities.
They vary in their desires to reach their potential." - John Maxwell

KWerner-

Good Stuff.

Rep speed for you!

-Russ H.

__________________
"Control everything. Own nothing." -John D. Rockefeller

"Don't confuse motion with action" -Ernest Hemingway

Thanks for the help!

1. Check
2. Check
3. and Check



I agree 100%. We have rooms in our house that we don't even go in anymore because it's cluttered with so much "Stuff" that we don't use anymore.



What I would grab:

- Photo CD's
- Identification Cards (Birth Certificates, Drivers License, Debit Card)
- Laptop (Because I have business info on it - might be a good idea to back up this data onto a external hard drive and add it to the photo cd's and ID cards in my fireproof safe.)


Thanks for encouraging everyone to think about this Russ, so we can make plans to have our most valuble possessions safe and secure or readily available to grab in case of a real fire.

__________________
"Successful and unsuccessful people do not vary greatly in their abilities.
They vary in their desires to reach their potential." - John Maxwell

What I would bring:

- SUV
- My kid's car seat
- Debit card and cash
- Driver's license, ID's, and important documents
- Photo CD's & Home movies
- Bible
- Laptop
- Allergy medicine, Tylenol
- One week's worth of clothes for each person
- My kid's favorite teddy bear, blankey, and some of his favorite toys (Thomas the Train sets)
- Cell phone
- Wedding rings
- Shaving bag w/ toiletry items (toothbrush, toothpaste, razor, etc.)
- A few dishes, glasses, and silverware
- Some cookware
- Vacuum cleaner

Um, I think I'm getting a little off track here... Russ said:


So, with that in mind, what else would I take that I would feel essential to my happiness?
You know, the thing of it is, is that as long as I have my wife and kid with me, the rest is truly just material - replacable or not, it's really not that big of deal - most of it is just "Stuff".



Okay, now this part is definitely going to take longer... I went through one of the bedrooms this weekend (inventorying everything in an excel spreadsheet and taking digital photos), the rest of the house may take a little while - I'll post my progress this weekend...

__________________
"Successful and unsuccessful people do not vary greatly in their abilities.
They vary in their desires to reach their potential." - John Maxwell