In this final part we will look at …
The previous blogs were all about conditioning yourself to be prepared to attract a greater / larger financial gain in your life, to neurologically welcome this resource and not avoid / fear it. Now comes the next stage – actually finding a vehicle – to make that a reality.
There are many – many types of financial investment you could choose but, in this blog I would like to share with you my own personal experience that has allowed me to have financial freedom in life, the way my wealth was created, initially at least, and an area of expertise as it has come to be for me. In sharing this with you I hope to Inspire you in to taking some new actions, making new decisions and thus crate new results on your own life.
In addition, there are 2 ways to look at, to understand, and use a financial investment – the traditional approach is 1 dimensional – that is – to say when you are younger before you are older! you are taught to think about your future tense life that has not happened yet but will one day, and the premise is to plan NOW for that future date in advance, very wise and very advisable. Again premise being you will be too old to work and thus will have no income then, so earn the income now and then save or invest it – for that future day that will surely arrive.
This is a brilliant approach and you are highly advised to do this.
I also believe there is a second dimension to investing that is not appreciated by most people on the whole, I would like to explain that here in this blog, this is by no means new information but I believe that it is not either understood or actioned by the masses and that is the value for me in mentioning it in this blog.
I have dabbled over the years in precious metals, stocks & shares and direct investments in companies, as well as property & fitness club franchises but my financial fortune ( and thus good fortune in life! ) was born out of the property
In sharing this with you, I want to explain a little about how the property market COULD be something you may want to look deeper at after reading this, especially if you are just starting out or on the fence as to ‘what’ investment route to take. Maybe you would not, no problem. Property is not for everyone of course, but I would like to offer my story to you to show that it can be done – if you wanted to.
I got involved in the Property industry purely out of chance, there was no master plan. I bought my first property back in 2003 after I split from my girlfriend I was with at the time, thus I had to find somewhere to live! I bought a 2 bed flat in Hemel Hempstead, off plot in around March 2003 and moved in to it in December 2003. Off plot means putting a large deposit down before it is even built, so you get a lower price, then wait till it is built and pay the remainder.
By 2008 I had a property portfolio worth at least £1,500,000.
As Personal Trainer back in the 90’s and early 2000’s I was fortunately very good at what I did, so much so I earned a large amount of money and pretty much saved everything for over 10 years. After 2003 I took out some loans, and together with my own money I brought more property, mainly apartments, re-mortgaged them and bought more over the years. I had over a dozen at one point and eventually sold off the poor performing ones, leaving me with 7 which, all these years later I still have to this very day at the time of writing this blog. May change again in the future.
My area of expertise thus is in property. Property is an industry that can be divided in to many segments such as property development ( building ), property investment, property rental, property buy ‘do up’ and sell, property management and so on…
I stuck with the niche of buying property, then managing the property through renting them out under what is called AST. This stands for A Shorthold Tenancy. For example, a tenant will stay in the property over a period of say 6 months to 1 year or longer under the signed agreement and in exchange – pay a monthly fee to you the landlord / landlady. The tenant is responsible for the council tax, and all utility bills. Depending on the market conditions at that time, the monthly fee the tenant pays you should easily cover the mortgage payment you yourself will be paying the bank each month, and still leave a chunk of money left over, anywhere from £1! to £500. It all depends on the variable factors involved in the math of the situation.
There are 2 types of financial gain / income here in this example. 1 is the above described rental income. The other is the behind the scenes capital growth of the investment itself. In this case the property. Property grows in worth, each year depending on again numerous variables, depending on whether the economy is in a recession period of growth period, will determine whether the capital investment / it’s worth goes up and by how much, stays the same or goes down and by how much.
Depending on who you listen to and what figures you like to quote, the rate of growth can vary. Take a look at the following article written by Dominic Frisby of Money Week :
I have read in other releases that since at least the year 1900, as an average ( varies year to year but … ) the growth of property is over 10% each, and every year. As an average. Recent house prices over the last 20 years show this in certain locations in the UK, but it goes back way further. Estimates for 2016 are around 5% depending on location, some areas of the country will grow at 10% + and over’s at only 2.5%!
Whatever the actual figure, stepping back from the year to year fluctuations and variables, if you see your investment in property as a medium term strategy which is what is mostly is, the you will see a healthy growth.
In the UK we live on an island remember! land mass will NEVER increase, however, simultaneously the number of people living on the same island does INCREASE each year. Thus the demand for the property increases, and therefore the price goes UP!
Neat thing is you do not have to do any active work on this part as it is outside of your control and will increase automatically.
Property is one of the most secure investments in existence.
While I can not influence that side of the coin, I attempted many years back to find a way to increase the rental income previously mentioned over and above the minimal growth of that you can expect each year. Increasing a monthly rental payment the tenant makes from £1,000 to £1,050 does not make any significant or noticeable gain. It will only get traded off with subsequent increases your end for managing agent fees, bank fees, inflation, increased taxes etc…
I eventually found a way that basically tripled my income … and doubled my expense in doing so. So I was still very favourably better off.
I converted my rental properties to what is called ‘Short Lets’ instead. As the name suggests people come and go for short period of time, say 4 days to a couple of weeks. This business concept / angle started a few decades back in the USA, came over here to the UK about 10 years back and is now popular here in the UK and is on the increase.
The premise being if you are paying say £120 for 1 night in a hotel in which you usually get 1 room / bedroom with 1 bathroom and that is it, would you be happy to pay the same £120 and have your own living room, a kitchen, 2 double bedrooms, 2 bathrooms and the ‘homely feeling’!? For most people it is a resounding YES.
Business individuals clearly prefer the hotel type setting for obvious reasons but if you have a family of 3,4 or 5 the financial implications alone are obvious.
IF – you decide to look in to the property business as a potential investment I would highly suggest that you give the concept of Short Lets a serious bit of attention.
If you would like to take a look at an example of a short let property rental business, here is my web site for some of the short lets properties :
I now happily / gratefully receive a healthy 6 figure income each year, every year – just for ‘having’ the properties sitting there. I then also make an additional 6 figure + income from the rental side alone as well. I also have other businesses and investments bringing in income – my point is NOT to bedazzle you and all that baloney …
I simply want to show that having Wealth – creating it in the first instance then maintaining it in the second instance and building it in the third instance IS possible with a simple strategy, no high intellect required and little or no initial outlay.
I EARNED every penny I started with, I then worked on conditioning myself to create more in my life going forwards exactly along the same lines I have presented in the previous 4 blogs, then I took the risks, managed my emotions, made sacrifices, experienced ridicule rejection and attacks, I committed, I studied, I took the hits and losses and to cut a long story short – I had patience but yet eagerness and the temperament to stay focused and not get distracted by life and the things like curve balls life throws your way regularly!
I now reap the rewards of my labour. The same or better opportunity exists this very moment for YOU as you read this real time. My whole focus in Life Coaching Professionally has been for many years now to help people replicate the same wealth – QUICKER and EASIER than I did, even better it!
My FREE 30 day Coaching plan for Success / Personal Development plan contains Financial creation content along the lines written here and also includes specific business opportunities that can help people to make a start straight away with little or even no capital. TIME, EMOTION and HARD WORK ARE required though!
TRADING OFF TIME FOR MONEY
I mentioned earlier that I EARNED my initial money that I then used to invest, well I want to bring that up in more detail here because it is important to understand the importance and relevance of investing, there is a time for earning and a time when investing comes in to focus, there is a difference between the two, allow me to explain ….
Like most people, back in the early days, say for example when I was a Personal Trainer, I had to trade off – swap – 1 hour of my time – for an agreed fixed return of money. I had no investment in place at that time. Not a problem in and of itself, except when you look at it from a view point of saying ‘ I want to have a LOT of money to my name in the next 10 years / before I retire of whatever it is you may say. Mathematically it is next to the impossible to just earn your way to wealth by using the strategy of trading off one recourse – time – for another resource – money. Logic follows logic, so there is a cap on how many hours in any / every day that you live, there are ONLY so money hours you can physically work because of parameters such as daylight, energy levels, other commitments you may have in your personal life, business hours available that others adhere to etc…
Earning a fixed amount of money for a fixed amount of hours times ( x ) days, weeks, months, years and decades will lead to a fixed / limited amount ONLY. You would have also probably become old and tired, maybe somewhat resentful about having given up your life just to be in a mediocre existence. Who knows.
When you are younger the above trading off an hour for an agreed amount of money is usual, acceptable, normal and not a problem, however, there comes a point in your life where you wake up one morning and it hits you that IF you continue doing this ONLY, then there is going to be a problem up stream. Maybe you are going to be daddy or a mummy and realise you are going to need additional ( lots! ) of money from now on, maybe you just don’t want to foresee a future of getting older and yet having no money left after a lifetime of grit and grime as they say.
That will be the day an investment comes in to relevance for you!
For me, that was age 31.
FINANCIAL INVESTING NOW FOR NOW – NOT THE FUTURE!
To quantify time in a multi dimensional way to exponentially create extra money by having some sort of investment in place – so that even while you sleep you are earning money! – is the outcome. Otherwise you will FOREVER have to swap 1 hour – for – x money. The amount of hours YOU have WILL run out remember!
There is a time in your life for trading off time for money, usually in instance A, then, you reach a certain point in your life and this approach is no longer appropriate and you realise that you need to change gears … enter B, the investment bug.
My point – the value of an investment is that it can SAVE you more of the MOST PRECIOUS RESOURCE YOU HAVE or will ever have in your life – TIME.
The right investment will also bring in copious amounts of money that will allow you to live the style of life you desire and deserve.
NOT having an investment in place means you will have to use up your most precious resource – TIME = your LIFE and likely ONLY at best have an average quality of life, or possibly only a mediocre level of existence.
In closing, I would like to have you remember this phrase…
In a World of Abundance – WHY -have lack?!
I hope you have found the 5 part Financial plan either interesting or useful or both!
I realise it is not for everyone to read my work and agree with everything or even find it not to there liking or style. As with all my work I simply put it out there and hope to reach the people that are looking for such like information, material etc…I always say to people use what is useful to YOU and discard the rest, everyone is different so will find different things useful.