Wealth creation is a simple concept, yet it can be very hard to do. Any number of things can get in our way when we’re trying to get financially free, however many of them fall under the category of self-inflicted wounds.
We make choices that lead us further from our goals rather than closer to them.
Following are 5 of those things that can hamper our wealth creation efforts.
Scientists tell us that our brains have 100 billion neurons. These neurons are nerve cells which have the capacity to both communicate and store information through what are called synaptic connections.
Your behaviour is influenced by these neurons...life experiences, things you learn and what you tell yourself about everything impacts your thinking and your actions.
Those synaptic connections which are made more often result in stronger connections which create a habit or mindset.
Simply put, your mindset will be shaped by what you spend your time focusing on.
Your life reflects the sum of everything that you’ve experienced up to this point in your life. Your friends, family, the culture you grew up in... all of these things had a say in what you think or even feel about yourself, this world and your part in it.
For example, if you grew up surrounded by people who were fearful about money, then chances are you’ve picked up on some of those fears and have them yourself.
Many of those fears are likely unconscious because they’ve become such a part of your identity that you don’t even notice them.
2. Debt capacity
The concept of debt means more than simply money you owe. There’s a mindset around it.
Your ability to manage it and accept it depends upon what you think of it. If you consider debt to be nothing more than a tool to use wisely then your choices will reflect that.
If, however, you have a fear of it...a fear that it will consume you...then your fears are preventing you from the opportunity to leverage debt to increase your wealth.
3. Time Management
Like most property investors you’ve got a job and other obligations that take up a lot of your time.
Many investors try to do everything themselves. Instead of leveraging the knowledge and/or services of professionals who have been where they are they end up worn out and exhausted.
I’ve seen it time and again.
People are excited about the wealth creation possibilities through property investing. They pick up every property investing magazine, join clubs, hang out on forums, etc., forgetting that they have other things in their life that require attention too.
While these things are great, without finding a balance they burn out and give up, leaving their dreams in the dustbin of another failed attempt at finding financial freedom.
4. Lack of Market Knowledge
Often you’ll hear “gloom and doom” in the market place, often by people with a vested interest in selling you something.
Are these people right?
Sometimes, but more often they’re not, they’re just repeating what they’ve been told.
If you’ve no real idea of what to look for you’re simply taking a stab in the dark when you buy an investment property.
Knowing and understanding the key market drivers is crucial to successfully investing in property.
Opportunity cost will often be the price for indecision.
When you have all of the information you need to make an informed choice, but you let fear stop you from taking action you’re stuck, unable to move forward.
Sometimes having too many options can be a problem as well because you’ve failed to directly tie your strategy to your goals.
While it’s often said that if you aim at nothing you’ll hit it every time, it’s also true that aiming at everything will often leave you with nothing as well.
So what now?
If you find yourself falling short in any of these areas you’re not alone. Many investors - even those who have been doing it for some time - have certain things that trip them up.
The important thing is to make changes that will help you rather than stand in your way.
For example, find ways to manage your time better. Leverage the talents of professionals (e.g. a buyer’s agent and/or property manager) so that you can free up more time for yourself, essentially adding more hours to your day...effortlessly.
Learn more about the markets...what drives them, key indicators to look for, which property types to buy, if and when to sell, etc.
For more tips and strategies, come along to our next Property Investor Night. These FREE events are packed with information you need to succeed in today’s real estate market.
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Sam Saggers is CEO of Positive Real Estate and Head of the buyers agency which annually negotiates $250 million-plus in property. Sam's advice is sought-after by thousands of investors including many on BRW’s Rich 200 list. Additionally Sam is a published author and has completed over 2000 property deals in the past 15 years plus helped mentor over 2200 Australian investors to real estate success!
Read more expert advice articles by Sam
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
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