Using Systems as Leverage in Your Wealth Strategy

Systems are one of the greatest forms of leverage in a wealth strategy.

Last week I shared how establishing investment criteria can help determine if a particular investment is right for your wealth strategy.

This is an example of a system.

This particular system can be used to sort through hundreds of investment opportunities in just minutes. That is powerful!

To truly maximize the power of this type of system, there are a few items that must be considered before establishing the investment criteria.

#1 Vision, Mission and Values for Your Wealth Strategy Vision, mission and values are not just for businesses.

These are powerful tools in a successful wealth strategy. I always emphasize that you should build a business around your wealth. Identifying your vision, mission and values for your wealth strategy is the starting point for building a business around your wealth.

The investment opportunities you select must work with your vision, mission and values.

#2 The Type of Asset You may wonder, if I already know the type of asset I want to invest in, isn't that my investment criteria? It's not.

The type of asset is very broad. Let's say you have decided to invest in commercial rental real estate. Even though this is a specific type of asset, there are still thousands of opportunities in that category.

You must know the asset type before you can identify the investment criteria.

Investment Criteria Investment criteria is simply a list of standards an investment must have. These standards are specific to you and must be consistent with your wealth vision, mission, values and asset type.

Specific investment criteria may include:

- Minimum appreciation

- Minimum rate of return

- Minimum cash flow or cash on cash return

- Price range

- Maximum amount of investment

- Location of investment

Using Your System to Identify the Right Investments for Your Wealth Strategy

Once your investment criteria is established, you can use it as the key part of your system to identify the right investments for your wealth strategy.

This system (as with all systems) is only successful when it is used properly and consistently.

Properly means that if any part of an investment opportunity does not meet the minimum requirements listed on your investment criteria, you throw that investment opportunity out.

Consistently means that you use it for every single investment opportunity.

This system helps you stay focused on the right opportunities for your wealth strategy.

Get Even More Leverage from Your System

Once you have your system in place, you can add even more leverage to your wealth strategy by sharing your system with your team members.

With this system, your team can do the work and they have the guidelines they need - they are built into the system. Even better, your team is following your vision, mission and values because they are built into the system.

Using Systems in Your Wealth Strategy

One of the reasons many people get stuck in their wealth strategy is that they do not set any boundaries or standards for selecting their investments. They immediately act on an investment opportunity that sounds good. While it may be a good investment, it may not fit with their overall wealth strategy which can lead to trouble down the road.

Bottom line - their wealth strategy is missing the proper systems.

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