As you know, I’ve bought hundreds of properties, including one that appreciated by US$1m in less than twelve months! That was a pleasant experience :-)
And yet the best investment I’ve ever made was not in a property at all, but rather in educating myself, which brings me to this week’s Steve-ism:
“The best investment you can make is in yourself.”
Trying to find and buy a great property investment that exceeds your level of effort, education and ability is like trying to get an A-Grade on your investing exam without bothering to come to class or doing any homework! What’s worse, without skill (which can only come from applied knowledge), you’re forced to speculate and/or make assumptions, which is dangerous because it adds unnecessary risk to your investing!
Watch an excellent video where I explain this Steve-ism here:
“The best investment you can make is in yourself” means YOU are the real asset; your increased skill and ability is the ‘return’ that comes from the educational investment you make in yourself.
Here’s a common mistake I see being made – investors who say they’ll invest in education from the profits they make from their investments. Huh? That’s silly – a bit like bargaining with a fireplace “Give me some warmth first – and then I’ll throw on some wood later”.
If you want to be more capable, first invest in education that will expand your capabilities.
What’s the best source of investment education (i.e. teacher, course, etc.) you’ve come across? Share it here below so others can benefit. You’re also welcome to share any a-ha moments this Steve-ism may have triggered, or post a question, comment or query.
Until next time, remember that success comes from doing things differently.
– Steve McKnight
Firm believer in this. Wife and I haven’t bought an investment property yet, signed up to your Property Apprenticeship as an absolute prerequisite to help us through the maze.
Another great ‘ism… Thanks, Steve
Ps. Mega conference was awesome… Got our tickets to next years event already :-)
Thanks for making a post Andy & Emma.
Maybe it would be helpful to talk about an encounter I had at one of my seminars a few years back.
During one of the breaks I was approached by a lady in tears. She went on to tell me about how she had been convinced to purchase a number (I think it was 3) negatively geared properties in regional mining towns, but that she had lost her job and couldn’t afford the repayments anymore. She was distraught at the thought of losing her home, which she had offered up as extra security to borrow 100% of the combined purchase price. The home had been in her family for several generations. I was so moved that I offered to meet with her 1-on-1 at no cost, for as long as it took to help her out of the mess.
The meetings were difficult, but productive. We mapped out a way forward where she could sell the properties, repay the debt, and still keep her family home, albeit with a small loan against her home that she could pay off over time.
Then I didn’t hear from her for a couple of months. One day I followed her up to be told “Oh yeah, thanks for your help but I have decided to keep holding them and hope something works out.”
This encounter provided me with a couple of lessons:
1. If you don’t know what you’re doing you can get convinced anything is a good investment.
2. Hope is a powerful emotion, but a plan is a better practical tool.
3. You can only help people who want it. Since I didn’t charge, my advice wasn’t valued.
I haven’t followed up since, but I hope everything worked out. In the meantime, had she sold out of those investments and redeployed in smarter assets, she would have made back all that was lost and then some.
– Steve
I know not to trust some of the `property groups` that are out there, take what you hear at face value , and run idea`s past others ,before you move
Hi Peter,
Thanks for making a contribution.
Two simple questions to ask at these property groups selling real estate are:
1. How many of these properties do I have to buy today to never work again tomorrow?; and
2. How much do you get paid if I buy one of the units?
– Steve
From a mentor. When I first started in the Super industry, I worked Saturday’s (no wage) as work experience, sponging off a team who were at the top of their game. Gave up some weekend fun, didn’t make any immediate $, but banked a wealth of knowledge for future use!
Well said Chris.
The extra knowledge you have today has more than likely allowed you to save and/or make more in the long run. I wonder, what was the best bit of advice you feel you picked up from those early days in your career?
– Steve
Thanks Steve. I used to joke with my mentor that coming to work for free was draining my pockets, not filling them. He loved to pull out one of his favourite quotes from Benjamin Franklin – “If a man empties his purse into his head, no one can take it away from him. An investment in knowledge always pays the best interest.” Isn’t it prophetic then, at the ripe old age of 42 , I find myself once again searching for the best people, process and content to help me tackle the foreign (at least to me) world of property investment :)
Hi Steve,
This Steveism is shoulder to shoulder with one of the quotes I am fond of using…. that being
“If you think education is expensive, try ignorance!”
I’m looking forward to hearing of that “one that appreciated by US$1m in less than twelve months! ” story of yours – please don’t keep us waiting too long to hear it !! ;)
Benny
Ahoy Benny!
The full tale will need to be told another day :-)
Until then…
– Steve
When I got into the Millionaire Apprentice program 2 years ago the course seemed expensive. The mentoring part of the program seemed like airy-fairy stuff. Looking back, that was the best investment ever. Not expensive at all. Life’s too short to learn from own mistakes.
Thanks Bipolar Bear.
The Property Apprenticeship is a wonderful investment and excellent value for money for those who use it, and an expensive paperweight for those who don’t.
The last intake for 2017 will open soon… :-)
Cheers,
– Steve
Hi Steve..thanks for all your isms..particularly on investment goals.ie.investing for cash flow or capital gains..helped set me on clear path of investing for cash flow for now..
Thanks for your encouragement Hlengiwe.
I’m pleased these words of wisdom are being appreciated.
– Steve
Keep up the great work!
Hi Steve,
Thanks for another great Steve-ism. You can’t beat investing in yourself, that’s for sure. Michelle and I have learned so much since starting the Property Apprentice course. Not only about property, but about goal setting, reverse engineering our desired outcomes, the principles of good management, and how to crunch numbers.
It is a lifelong investment for sure.
Cheers,
Gary
Thanks for the public vote of confidence Gary.
– Steve
Another pearl of wisdom from Steve about investing in yourself and in a great team. For me, the Property Apprenticeship has truly been an eye-opener and I would recommend it to absolutely anyone and everyone who wants to know more about, or is an owner of, investment property. It may cost you money up front but will pay off huge dividends in the long run. Please keep ’em coming, Steve!
Thanks Marguerite. I’m proud of the progress you’ve made and your diligence in self-improvement. Keep at it!
– Steve
I have been enjoying Steve’s property training courses; also in the past I had the opportunity to be in one of the groups we met every month for a year in Melbourne and in one ocasion where all the group went for a walk and Steve show us different kind of opportunities around the place close to were we had the meeting .
It was a great experience.
Thanks for that opportunity of that education outdoors with real examples…..
On that day I learnt so much from you as you were sharing from your knowledge in Australia
we were learning of high density areas and what could be achieved in streets we walk many times without noticing what is there and could be improved to make profits.
Thanks again Steve :)
Sorry I have to post another important bit about Steve’s education.
Steve cares about family, health etc
At the meetings in Melbourne we had such good sections about heath, weight loss, the effects that wheat and sugar have on people. It was a lot of good info to bring to the family. It helped! We need good health to enjoy the profits .
Thank you Steve :)
Thanks for contributing to the conversation Gladys.
Your post is timely as I’ve put on a few kilos lately from some lazy comfort eating.
Bye,
– Steve
Hi Steve, thanks for this Steve-ism. Great reminder that in property investing, the property may be about the building/land but it’s so important to think about the “investing” side of property investing as the FOUNDATION. You can thank my beautiful husband for that quote :) xx
Thanks Kim & Jim!
Thank you Steve! – another brilliant but also very important “ism”.
Applied education, investing in yourself and taking informed action, is unfortunately regularly underrated – the tools you have provided continue to be invaluable as Amanda and I develop our property portfolio. Cheers Mark