PME2 - Start with the End-State in Mind

Back in Mar '08, I'd shared on my take of a concept to achieve financial freedom, termed as PME2. In my subsequent blogs, I'd attempt to share more in-depth of each component of the PME2 concept.

In this article, I'd attempt to share more about "End-State - Desired Financial Outcome".

End-State, or what is commonly known as Objectives, Goals... are statements that spell out the outcome of certain actions. According to TheFreeDictionary.Com, End-State can be defined as, "The set of required conditions that defines achievement of the commander's objectives."

Some prefer that the end-state be specific, measurable and time-based so as to effectively evaluate the performance of certain systems being implemented. Some use simple keywords as in 5Ws i.e. Who, What, Where, When and Why as a guide to draft the end-state statement.

A possible example of how an end-state statement, or desired financial outcome, may look like:

"I am to achieve financial freedom, with a monthly passive and/or portfolio income of $10,000, in Singapore term, by age 45 years old, as part of my Phase 1 Dreams Realisation Plan."

Who: "I". Usually this is self-implied, and can be ommited.

What: "to achieve financial freedom, with a monthly passive and/or portfolio income of $10,000"

Where: "Singapore". Can be self-implied too and be ommitted.

When: "by age 45 years old"

Why: "as part of my Phase 1 Dreams Realisation Plan"


One of my mentor used to tell me, "Start with the End-State in Mind". This concept is actually not new. Google the phrase and it is not difficult to find out alot about how many people or groups of people in the world are applying this concept.

An example of one such group called themselves (or rather they are being labelled as) the Effects Based Operations (EBO) practitioners. There was a paper titled, "Making Information Operations Effects-Based: Begin with the End (-State) in Mind!", authored by Duczynski, Guy. The paper argues that an examination of the systemic interactions amongst factors may deepen planners or policy-makers understanding of why a region or area of interest behaves the way it does, before they attempt to change it. A method is detailed that couples effects statements and means and highlights capability requirements. A case study example is provided using North Korea.

In my opinion, the great thing about starting any project (or investment in our discussion context) with the desired end-state in mind, is the clarity of what is to be achieved and the focus of how to achieve it. Lesser time and energy will be wasted, trying to figure out what we want, when the actions have already began. We will be able to strategise better on how to go about achieving our desired financial outcome. Our strategy will be holistic, efficient and purposeful.

In the next article, I will attempt to discuss on the foundation of PME2 - "Purpose".

Meanwhile, spend some time thinking about the desire outcome you always wanted. Pen it down, if necessary, for yourself as a constant reminder. I have done mine. ;-)


Have a great day,

Leroy Ang

"When I Stop Learning, I Stop Living."

PME2 - Concept for Financial Freedom

It has been a good short break for me since I last blogged in Nov 2007. Work and learning had been intensive but I am still spending at least 1 hour per day to continuously improve my financial intelligence.

Time flies and it has already been 2 years 3 months since I made that choice to achieve financial freedom with the financial enlightenment I'd gained in Dec 2005. Over this period, I am glad that my learnings have improved by leaps and bounds. I have also started to struture my own thoughts and develop my own concept of how one can achieve financial freedom, which i will like to share in this article.

On the journey towards my financial freedom, I have attempted to share my learning experience to numerous learning partners. I have also attempted to spar my ideas with my learning partners to sharpen my thoughts. Most of the sharing or sparring have been in parts, as I am unable to express my ideas as a whole. It is also pretty lengthy to express the parts in details before a holistic whole can be derived. Thus I have decided to share my learning using a simple concept, introduced to me by one of my mentor. The main structure is known as Purpose, Methods and End-State, or in short PME. I have since evolves the PME structure into a concept known as PME2, to suit the context of this discussion.

The PME2 builds upon my limited 2 years of journey in trying to find my ways to achieve financial freedom. I believe many newbies, like me, in the search of their own path to achieve financial freedom, will also encounter what I had been through. What I am going to share here, is nothing more than logic. Yes, plain logic. The difference lies in action. I put the logic into action and evolves it into applied knowledge.

PME2 attempts to conceptualise, shape and synergise my efforts to achieve my desired outcome - Financial Freedom. When expressed pictorially, it is can be seen in the form of constructing a building. The larger framework is enclaved by the Purpose, Methods and End-State. The inner structure are supported by key pillars of Plans, Meta-Attributes and Education. I will attempt to discuss the PME2 concept broadly here.

PURPOSE

The ground forms the foundation on which the building is been constructed on. If this foundation is weak, the building will face a lot of difficulties during the construction phase or the completed building will collapse in no time. The ground is the purpose.

The purpose will also answer the question of "WHY", the key reason for all the subsequent efforts to achieve the desired end-state. When faced with difficulties along the journey, this Purpose will constantly reinforce the practitioner's belief that the journey is worth all the while.

Purpose seems simliar to one of the pillar, Meta-Attributes, as though they are a sub-set of each other, yet are different in nature which I will attempt to elaborate further later.

METHODS

If I have 6 hours to chop a tree, I will spend 4 hours sharpening the axe. This is where I will invest my 4 hours in.

Plan, Meta-Attributes and Education are the three supporting pillars building upon the purpose, supports the way to achieve the desired outcome. The three pillars are also mutually supporting each other.

A Plan keeps the practitioner focused on what requires to be done and synergise his efforts to achieve it. The Meta-attributes forms the backbone without which the outcome will be hollow and empty. Education is established by acquiring Skills, Knowledge and Experience along this journey.

END-STATE

The end-state, in this context, are financial goals / targets in definitive form of 5Ws. It has to be specific, measurable, quantifiable and in the form of Who, What, Where, When and Why.

In the next sharing, I will attempt to discuss more into the methods of Plan, Meta-Attributes and Education. Meanwhile, I invite and appreciate any reader of this entry to share and leave your comments after reading this entry.

Good night,

Leroy :-)

"When I Stop Learning, I Stop Living."