Creating sustainable life-long wealth can be a pipedream fantasy for many Australians - so here are some facts about financial freedom that you may not know which will help you get ahead of the pack.
Blogger: Sam Saggers, CEO, Positive Real Estate
What would your life look like if you were wealthy? Waking up at noon, out for a long lunch with a friend, an afternoon of shopping and then a drive up the coast?
Perhaps - if you’d like - but it can be so much more.
Creating wealth is not an end in itself. It’s simply a means of obtaining what all humans long most to have: Freedom.
Do you recognise any of the following wealth creation ideas?
1. Just about anyone can become wealthy through property investing.
There’s no “secret club” to getting wealthy. If you do what other property investors have done and if you tap into the knowledge that they have you too can grow your wealth. The key is persistence and knowledge. With both of these assets you can achieve your goal of becoming financially independent.
2. Creating wealth involves much more than simply “creating” it.
It takes an entirely different skillset to manage your portfolio once you’ve grown it. You’ve got to understand how to manage your cash flow, reduce your tax liabilities and protect your assets in the event you’re unable to manage them due to sickness or death.
3. Becoming wealthy can have an impact on your personality.
Would you become “Mr. Scrooge” if you suddenly inherited a huge sum or would you be the same person? What if you became wealthy through a measured approach to wealth creation? Do you think your personality would change?
Of course it would - but do you know how it might change?
When we set out to become financially free it does something to us. We learn resilience and patience and our opinions of ourselves and our capability rises.
4. Wealth creation is a curve, not a straight line.
When learning anything new there will be times when things don’t go as planned. This is one reason so many beginning investors become discouraged and give up when things start to get hard.
When the hard times hit - and they do from time to time - it might seem like you’re never going to reach your goals, especially if you think that you should go from struggling to “easy street” in a straight shot.
Setbacks happen. This is why creating wealth through property investing requires tenacity!
5. Multiple income streams aid retirement stability
Diversify your portfolio across several markets and investment vehicles to maximise your returns while minimising risk.
6. Risk is a necessary partner to returns
There is always an element of risk when in investing in property. Heck, you take a risk every day you get out of bed. The point is to minimise your risks while growing your returns through savvy investing choices.
7. Chasing perfection leads to “analysis paralysis”
Don’t get caught up in the idea that somewhere “out there” is a perfect deal. There’s not. Simply choose the best opportunity in what you believe is the right marketplace and then seek to control those things which are in your own direct control.
The goal is to buy investment property and get a return for your investment - not to surround yourself with reams of property and market data which lie on your table collecting dust.
Creating wealth is a continual process, so don’t expect to learn everything about it all at once. Certainly, take time to learn by reading everything you can on the subject, take classes, webinars, workshops, etc. but most of all find a mentor who can help you on your journey.