Dear ,
I want to be upfront and get this out of the way: there is no one strategy that is right for every investor. Anyone that tries to tell you otherwise is frankly trying to pull the wool over your eyes.
It is impossible to unlock a ‘one size fits all’ wealth creation strategy because every one of us is different. We each have different wants, needs, values, risk profiles, financial resources, income levels… the list goes on.
As a result, while there may be many different strategies that could work for you, the right one to suit your personal situation may be different to the strategy your brother, mum, friend or cousin is using. Devising your own investing strategy is also something you need to focus on at the beginning of your journey, so you can evaluate potential deals and make sure they meet your criteria and take you closer to your goals.
At Real Wealth Australia we have created a system for helping you work out your ideal investment roadmap, called the ’10 in 10’ strategy. The aim of the game is to purchase 10 properties in 10 years (or sooner) and retire on $100,000+ per year.
While the concept is ’10 in 10’, the beauty of this strategy is that it’s about tailoring it to your needs. In the past, some of our clients have upped the ante and launched their ’20 in 10’ journey: that would be 20 properties in 10 years. Others have fast-tracked their results by going for ’10 in 6’ or ’15 in 10’.
Whatever you choose in terms of the actual logistics of your roll out, the ’10 in 10’ strategy shows you how you can approach your investing plans and what steps you need to take to achieve your goals.
It factors in every single variable in your lifestyle, including:
Using all of this information, you can then create an investment strategy that is tailored to your current lifestyle, whilst also planning for your future financial freedom.
Activity
Where Can You Save?
Consider your own lifestyle and your spending habits. I want you to take a piece of paper and draw a line down the middle.
In the left column, write down what you are spending that are your essentials. This would include items such as groceries, utilities, your rent or mortgage, etc.
In the right column, write down what you are spending that is over and above your essentials. Let’s call these your luxuries. This would include eating out, movie nights, going on shopping sprees, etc.
Now think of opportunities to cut costs, such as gym memberships, PayTV contracts, magazine subscriptions, coffees, takeaways, beauty treatments, etc.…
I’m not saying you need to cut all of the fun from your life in order to invest, but if you want to enjoy your lifestyle then you need to give careful consideration to what you are doing.
So my suggestion is to look for an opportunity to save money within your “luxuries” spending, to find the funds to invest with.
The idea is to then look for investment properties that will provide you with the overall results, without costing you more than you want – but don’t go doing this part yet!
Let’s just look at where we can cut back.
So give this a go, and I’ll share some more information with you shortly.
To Your Success,
P.S. In my next e-mail, I’ll share with you a story of a young man who was close to being broke, who then subsequently went on to become a successful investor after we helped him create his own personal investment strategy.