The Book of Kings tells us that King Solomon was one of the wisest (and richest) people ever to have lived. That’s why his timeless words from the books of Ecclesiastes and Proverbs continues to guide the money management and investing decisions of thousands even today. The great King’s recommendations can help new investors master the basics of investing success: clarify goals, create plans and take action.
Clarify Intentions and Goals
It’s hard to move plans forward without a clear idea about the end result. But that’s what lazy investors do – they follow the trends of the day, chase quick results or turn the whole process over to financial managers with their own agendas and goals. But King Solomon reminds us that clear goals inspired by the right guidance is the real path to wealth.
“Fear God and keep His commandments, for this is the whole duty of man, “ says Ecclesiastes 10:12, a verse widely attributed to King Solomon himself. Those words remind us that a solid foundation for clarifying intentions and setting goals comes from following the commandments of God.
Keeping those commandments in mind can help to eliminate avenues that may look good but are actually morally questionable or downright dishonest. And using the commandments of God to make investing choices will create the right conditions for making progress toward those goals.
Create a Workable Plan
Wisdom is knowledge, and as Solomon tells us again and again in the Book of Proverbs, it’s far more valuable than gold or other riches. Wisdom leads to prudence – wise decision making based on reason and caution. Those two qualities go hand in hand for building wealth and prosperity.
“A simple man believes anything, “ Solomon tells us in Proverbs 14:15, “ but a prudent man gives thought to his steps.” If your goals are clear – aligned with the commandments of God and intended for the best and highest outcomes – then it’s time to plan the steps that lead to those goals. And while it’s easy to be sucked into the latest get rich quick scheme, or go springing after every new trend that comes along just because it sounds good, the prudent investor thinks things through and considers how one step leads to the next.
The “simple man who believes everything, “ as Solomon says, is the target of an array of real estate scams and hoaxes, from the tearjerker stories posted on the internet to the scammer posing as a qualified investment counselor. But the prudent investor takes time to evaluate the claims and promises, and to reject them if they aren’t in line with the bigger plan.
And a key factor in the growth of wisdom that leads to prudent action is information. As Jason Hartman says, getting educated is the first step. The more you know, the more control you have over the investing process. And that’s the route to real financial freedom.
“Without counsel purposes are disappointed, but in the multitude of counselors they are established,” says the King in Proverbs 15:22. A part of learning is finding out what you don’t know, too, and that’s when a prudent investor opts to get professional advice. But thanks to getting educated and informed about your investments, you won’t be the simple one who believes everything, and you’ll be able to weed out the bad advice from the good.
Take Right Action
“He who observes the wind will not sow, and he who regards the clouds will not reap,” Solomon observes in Ecclesiastes 11:4. Goal setting and planning don’t mean much if you don’t take action. If you’ve clarified your goals and developed a plan with awareness and all the information you can find, then it’s time to move forward.
Success in income property investing, as in so many other situations, can get stalled by feeling overwhelmed by what you don’t know, what you still need to learn, and a fear of the future. It’s far too easy to keep learning without ever feeling ready to put plans into action.
But as Solomon warns, waiting for just the right time, watching conditions evolve, leads to nothing tangible. The prudent investor acts on the best information and advice available right now, accepting that the future is uncertain but trusting that the best preparation will yield the best outcome.
“Cast your bread upon the waters,” the King tells us in those famous lines from Ecclesiastes 11:1, “for you will find it after many days.” Accepting that the future is uncertain, but trusting that your investing bread will not be lost, is a key to moving forward.
Some investing avenues are riskier than others. But real estate, in the form of rental income property, is a stable investment that never goes out of style. People always need a place to live, and unless there’s a landslide or massive flood, land doesn’t go anywhere. Prudent investors who want to minimize risk and maximize returns look to the land – and the structures on it – for long term investing success. And thousands of years later, the timeless words of King Solomon about setting goals and takng action lay a solid foundation for buiding wealth from income property. (Top image:Flickr/jeremylevine)
Read more from Solomon Success:
5 Habits of Successful Investors
Should Bitcoins Buy Real Estate?
Carla and the Solomon Success Team
