‘’Live it up, buy everything you want…just buy the assets to pay for them first.”
The above quote by Robert Kiyosaki is one of my favourites and it really helped me as a “want-to-be investor” over a decade ago, understand what I needed to do if I wanted to be successful in this space. Look at how simple the statement is, but if you get it, and follow it, you will most certainly achieve investment success. See what this statement did for me, is clearly define what I needed to do, which helped immensely in choosing the path that I was going to take.
Back in 2000 I was just 2 years into starting my business after spending 5 months back packing with my wife to be, around the USA and Europe. It was an amazing experience for the 2 of us, and by the time we got back, I was refreshed and ready to get started in business. I had been going for about 18 months when we purchased our first home which was a duplex, so it was a great start for us to have a house and an investment property at the same time. Having the additional income meant that our mortgage was manageable and we had a taste of what real estate investing was like which both of us enjoyed.
What we had started was great, but there was so much more I needed to learn and understand and a friend recommended that I get hold of Rich Dad Poor Dad. I am not a reader so I purchased the tapes so I could listen to them in the car, and the information I was listening to was truly life changing material for me. I love the simplicity with which Robert explains everything, and his teaching really resonated with me and investing began to get a whole lot clearer. I wanted to focus on property, it was an asset class that appealed to me and I loved the leverage element to it because we didn’t have a lot of capital or income at the time so we had to maximise the opportunities with what we had.
I was determined to not get trapped and bogged down by my investments. I wanted them to work for me; after all, we do this to improve our lives, not place restrictions on it. The more I listened to Kiyosaki teachings the clearer the path I was going to take become, and I set about building a portfolio that would produce growth and income, to allow me to do the things in my life that were important for myself and my family.
Now I knew this process was going to take time and that was no issue for me because I knew if I built this correctly it would pay dividends for the rest of my life. Delayed gratification was a big part of my process and continues to be today. If you try and take from your investments to early, or start living a life beyond the capacity of your investments to pay for it, you end going around in circles and never really making significant advances forward. My wife and I made the decision that we were going to stay true to what our understanding of the above quote means to us, and we move forward when our investments allow us to do so. We lived in our first home up until 2 ½ years ago and have now upgraded to something that we love and is sustainable for us. There are many improvements we look forward to making to our new home, so we will keep doing what we know how to, and that is working on growing our assets so we can enjoy the things we like without the financial pain.
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Back in 2000, Garry Harvey was a 26-year-old Victorian looking to buy his first home. Now, still shy of his 40th birthday, YIP’s runner-up for Investor of the Year 2012 has amassed a diverse portfolio of 39 properties that return more than $500,000 a year in rental income and have given him $2.75million in equity to work with. Garry is a fan of buying in bulk, and he has made the most of a strategy centred on subdividing blocks of units.
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