Step 1 – Identify your strengths and weaknesses
The first thing you want to do is identify your strengths and weaknesses. Think about all the activities you have ever done. Try to remember examples where the work seemed fun and easy. Try to think of examples where people constantly complimented you on how good you were at doing this task or job. Doing this exercise (identifying the EASY WORK) will help you to figure out your strengths. Make a list of the examples.
Another method would be to take a personality test. Personality tests are great at helping you to identify what your strengths are and what your weaknesses are. I have taken several personality tests and Meyers Briggs is a very popular test. You should be able to find personality tests online or at your local career center. Taking a personality test is as easy as taking a survey. Make a list of your strengths and weaknesses.
Step 2 – How much money do you want to make and how much do you have to spend to get started.
There are some investing strategies that require absolutely no money (buying real estate, article writing, affiliate marketing, mystery shopper, online surveys) to get started. On the flip side, there are strategies (stock market investing, tax lien investing, buying a business) that are impossible without some startup capital. Decide whether or not you want to spend money to get started or if you want to do as much as possible without spending your own money. Contrary to popular belief YOU DO NOT NEED MONEY TO MAKE MONEY!
Step 3 – Think about how much involvement you want to have with your strategy (active or passive)
Passive (residual) income strategies require very little involvement to keep them going once they are setup, hence the term “passive” income. On the other hand there are investing strategies that WILL require your constant involvement in order to be successful. A perfect example of an active strategy would be buying a stock option. Stock options lose value over time, so with this strategy time is working against you. The passive strategy to options investing would be if you were to “sell” stock options. With this strategy, time is in your favor and once you sell the option you usually don’t have to do anything.
Step 4 – Do a search on different types of investing strategies and make a list
Run a Google search on “investment strategies” and you will get millions of results. The goal here is to get a sizable list of the different investment strategies that are available to you. Write down as many strategies as you can find, have fun in this step. Think of if as a scavenger hunt to find investment strategies. They’re out there, just waiting to be discovered by you!
Step 5 – Do Further Research on Each Strategy in your list
Once you have your list of different strategies, you will want to do some further research on each one. Some will be strategies you may have already heard about and some won’t. Either way do some research into these strategies. You will want to find out how these strategies line up with the requirements from steps 1- 3 above. Basically you should have a checklist that factors in your your personality and interests so that you can screen the strategies. Use that checklist to eliminate the strategies that don’t match up.
Step 6 – Narrow your list down to five strategies, screen again then pick the top one
Once you have used the checklist to narrow down your list of investment strategies, get even more information and go through the list again. Identify the pros and cons (good and bad) of each strategy and then use that to pick the best strategy. Choose the investment strategy that most closely matches up with your personality and requirements from steps 1 -3.
Step 7 – Get Started!
Once you have your strategy in hand, the only thing left to it, is to do it. Get started and start making money now.