Forum Replies Created
I think Microeconomics and Macroeconomics are intertwined…
The only way for a country to remain financially healthy is if individuals do their best to remain financially healthy.
I can only discuss what I know from my limited experiences (at 22), but this is what I know:
– I will be graduating at the end of the year from a Bachelor Degree. I have a job lined up and will be paying off my HECS debt as quickly as possible (no debt is good debt in my view).
– I will be spending less than I earn and will stay at home as long as I can afford to.
– I will be saving as much as I can and investing in areas where I have an information advantage and know more than the general population.Steve, I think that even though Greece is struggling we also need to look at our own country. Everyone has been happy to receive the money Rudd has given them over the last few years but we are still spending tomorrow's money to live today. We as a country (full of individuals) need to take action to reign in our spending habits to ensure we are able to repay our national debt and to ensure that we don't end up in a position similar to these countries.
$200 billion might not be a lot compared to other countries, but when you look at our population size and the fact that the richest person in the country is worth less than $10Billion, we are still in a difficult predicament.
Short term solution= Long term pain.
Short term pain = Long term solution.
I've had to sacrifice financially to obtain my degree to ensure I have a better knowledge and income longer term. I believe if we sacrifice our short term needs we can ensure the long term prosperity of our nation.
Regards,
Josh Moore.
Hi there Mavoz,
What you do depends ultimately on how long you plan to move for. Personally, if I was considering a move with the above situation, I would choose option four:
- Keep both houses.
- Rent out your Melbourne house ($400 a week).
- Use the income from one/both houses to rent a house in the country.
If the rent from both of your properties would cover the cost of living, why go through the hassle of selling in a buyers market? Rent instead. This way you can move back also if needed, and you are not taking on anymore debt, while still having your current properties as investments.
This is actually using your passive income that you have currently created to reduce your living expenses, without having to sell anything.
Just my two cents, but up to you champ!
Hi there 1428 1239,
I am new to the property investing game myself, but have made some other interesting achievements in thanks to the propertyinvesting.com team that might motivate you
Since 2008:
- Started setting goals more regularly.
- Started saving regularly and consistently. This is becoming a finance pool for investing.
- Started a blog.
- Quit smoking.
- Started developing good habits (such as exercising, getting things done, etc.)
- Got into a Bachelor of Business at university after dropping out of school a few years ago.
Last year, we finally finished building a mud brick house (Never again). It is now for sale and we plan to rent for a while and use the sale proceeds to invest our first renovation project, which will be much smaller.
The most important thing (in my opinion nb: this is the major lesson here) is to set goals that challenge you slightly and to build momentum through developing habits that progress you forward daily. Everyone starts with one deal and by spending less than they earn, the important point is that they make a start and continue to persist when the challenges and set backs begin to occur.
Best of Success!
Just noticed after that post that you have joined the RESULTS program. Well done!
Sounds like making a decision to take action (even if it was just as a critic) could create a learning opportunity. I am sure this post has reinforced in all the previous results participants some of the experiences and opportunities they had along the way, and that you will face soon.
Best of success.
Hey Reeco,
Couldn't say I have read all the posts here but I will give my two cents.
Would you say that you have abundance thinking or scarcity thinking?
As an entrepreneur (studying it at university and working in my lecturer's company 2 days a week) I have learned that money is not the only answer.
I turned 21 last week and currently have about 3 mentors: 1 for property and business, and two solely for business. As I only have around $1,500 in the bank I can't offer money for mentorship, but I can offer value transactions.
What do I mean by a value transaction? I mean that if you want something you offer something of value to the other party in return. An example of this might be offering to volunteer your time in exchange for mentorship and knowledge.
Now the next question is this: If you have an abundance mentality, have you ever thought to approach Steve or other successful individuals on this site for mentoring? You could possibly offer a day a week in exchange for education while also receiving a practical insight that others might not usually receive.
As I am in a similar situation to you, I suggest some action:
- Ask for what you want by providing a value transaction. If you receive a 'no' be persistent and keep looking.
- Can you increase the amount of money you have? A few months ago I was living off centrelink (about $110 a week), now I am working as a Manager for a small entrepreneurial business $20 an hr. (I started on $18, but due to my work ethic and motivation, received a pay raise after six weeks, and am now being taught skills such as managing the books and running the website.). I had approximately $10 in savings and am now over $1500 in 8 weeks and climbing!
- Can you decrease your expenses? Are you able to reduce spending to increase your excess savings to invest in a program?
The point is while you might not be there today, you can work towards improving your situation to achieve your destination tomorrow. If you want to get into the RESULTS or a similar program, apply the knowledge you have so far and then use the success you achieve to take you to the next level!
Mike, I would be interested to hear a little bit more about your story. Can you either pm me or post some details up here?
Finally, I met with Franz Madlener last year (Villa and Hut fame, and entrepreneur of the year 2007), and he told me the following lesson which might be helpful to you:
"Luck is when preparation meets with opportunity."
If you want to be 'lucky' enough to achieve your dreams, then prepare using what you currently have around you (resources, time, positive attitude, etc) and build on opportunities that come your way!
I wish you the best of success.
As my lecturer in my finance for entrepreneurship class always reminded us: CASH IS KING! If you can make $40,000 in the next three months via a buy-reno-sell vs making $4,000 profit a year via buy and hold, then I would suggest taking the option that gets you $40k now, especially after inflation is factored into the process. This cash can then be used to invest in longer term deals, but can also be used for further cash investments, reducing debt, increasing savings, cutting back work hours to maximise time, etc.
At the end of the day though it depends on your investing goals and the individual investment.
I drive just a plane old mid 90's Ford Falcon base model. Will downsize to a four cylinder next time I purchase a car (hopefully my passive income will allow it to be an Audi A4 2.0 or something by then, but will wait and see!). This Ford and my last one have both been really reliable and needed barely any maintenance, though a little bit thirsty on the petrol for my finances. Prices having dropped dramatically the last few months has helped address this problem for now.
Wow, it has been a longtime since I posted this… Still have to say that I don't have an AIP (as I'm a student and have had next to no money all year, studying entrepreneurship), but I am learning, increasing my savings account and working with a team in one of my lecturer's many businesses, which is allowing me to get great experience and also to get some mentoring. Also writing a business plan with some classmates for a web 2.0 business we are looking at developing. So not much on the go with property at the moment but a lot in relation to business, saving, leveraging my time and money (work 2 days a week as a general manager, usually from home), practicing financial spreadsheets, developing business systems and much, much more.
Will have to put the occasional post up somewhere to keep myself accountable and on track.
Take care everyone!
Also check out http://en.wikipedia.org/wiki/Marketing_warfare_strategies for additional information relating to Marketing warfare (Guerilla tactics are one type, but the most commonly used for people who are not McDonalds, Coca Cola, etc.)
Your Welcome,
Also check out the 22 immutable laws of marketing by Al Ries and Jack Trout. They cover a lot of essential marketing knowledge that is good for entrepreneurs trying to bootstrap in the initial stages of a venture to save money.
Keep refining your goals and working towards them, while you might not have found a property you can still be practicing the numbers while also managing your personal finances to increase your savings and thus your investing capital and leverage.
Hi Dallen_14,
I think it is great you have posted your queries online. Asking for advice is a great step as it helps to clarify your thoughts while also allowing you to receive input from others.
I am assuming the Billboard deal you are talking about is the same deal from Steve's 3rd book, however if it is not some of the following information will still be useful.
Personally, I think one of the reasons behind this example from Steve was to show that:
- There are still decent investments in the market if you know what you are looking for.
- Success comes from doing things differently.
Steve wrote the last comment in my book last year when he signed it for me. Every time I see it I think about the importance of differentiating myself from the masses. Steve did that with this investment (everyone else was looking for specific houses, Steve moved to alternative commercial property investments.).
My point is that Steve mentioned last year in my R.E.S.U.L.T.S. mentoring that he had since sold the Billboard and moved onto other investments. As people are now buzzing about the ideas of billboards, Steve is looking at other ideas that people are overlooking, while ensuring he is meeting his property investing goals and objectives.
If billboards seem to meet your goals and objectives in relation to property investing then I would recommend finding a guerrilla marketing strategy (see guerrilla marketing warfare for more info… Google it), as it will allow you to save finances in advertising while going straight to the customers of your product (which is Billboard space.). If you are looking at developing and placing the signs then I would recommend doing additional research into the placement of Billboards and those who make the decisions for placement of them.
Hope this helps.
Not sure if you are aware but Steve has mentioned in his third book (from 0 to 260 properties in 7 years) that this calculation no longer works in the current market. His third book explains details relating to different market trends and the investing strategies for each market, whereas the first is designed for a market that is in the process of booming (and prior to a boom, as that was when Steve got in, back in 1999).
Recommended action:
- Continue to develop your education by purchasing the third book by Steve Mcknight (don't worry about the second one for now) and then compare the information in the book (especially the strategy coined 'the 3 second solution' which is the new version of this strategy) to the original book.
- Keep up the good work. It is good to see you are enthusiastic and are researching based on what you have learned so far. Well Done!
