PDCA ("Plan-Do-Check-Act")

PDCA ("Plan-Do-Check-Act") is an iterative four-step problem-solving process typically used in quality control. It is also known as the Deming Cycle, Shewhart cycle, Deming Wheel, or Plan-Do-Study-Act.

"PLAN
Establish the objectives and processes necessary to deliver results in accordance with the specifications.

DO
Implement the processes.

CHECK
Monitor and evaluate the processes and results against objectives and Specifications and report the outcome.

ACT
Apply actions to the outcome for necessary improvement. This means reviewing all steps (Plan, Do, Check, Act) and modifying the process to improve it before its next implementation."

Now readers, try thinking how this approach can be helpful to your personal investment?

1- PLAN - Assuming I want to reach 100K hard-cold cash by FY2009, which is 20months away from now.

100K divide 20 months = 5K per month.

So how are you going to achieve this 5K per month with a single source of income??? What type of investment suits you in order to achieve compound interest rate of 10-15% per year?

2- DO

Implement action and make sure your net worth heads north over south and know the meaning of "needs" and"wants"

3- CHECK

Ensure that you are staying focus on your plan and spend at least 1 hour every to review your goals

4- ACT

Keep a positive mind frame if you are getting progress and the right result in your forecast plan, however if you are off the track along the way, do something about it to bring what is wrong to right.