This week’s Steve-ism is:
“Invest for results, not approval”
One all too common mistake many investors make is investing in a way that pleases someone else, rather than walking their own path and investing in a way that suits them first and foremost.
If you’ve bought a property because the agent said it would make a good investment, or because your friend thought it looked nice, or because a parent told you it was a smart purchase, then you’re probably ‘approval investing’ rather than ‘results investing’.
You’re setting yourself up for dismay and disappointment by seeking approval from those who don’t share your vision and/or don’t have your skill or risk tolerance, and hence they won’t understand your motives or desire for stepping outside of your (and their) comfort zones.
Take my Dad for instance. He thought I was crazy to throw away a safe and high-paying accounting career. Other family and friends told me it was madness to invest in regional property. It was difficult to push ahead without the support of those I loved. But do you know what they say now? “I always knew you’d be successful!”
Are you struggling with seeking but not getting the approval you crave? This short video containing an important revelation will help:
“Invest for results, not approval” means you should invest in a way that suits your purposes and not as a mechanism to impress others; there’s plenty of time for hugs and high-fives once you’ve banked your first big profit.
Have you been approval investing rather than results investing? If so, what unpleasant consequences have resulted?
If you have a question or need some help then make a post below. Alternatively, browse what others are saying.
Until next time, remember that success comes from doing things differently.
– Steve McKnight
What Are your thoughts on Point Vernon in the Hervey Bay Area.
I bought in the area in 2005 thinking that the International airport and it be in the gateway to the Whitsundays that I would have a good area for capital growth however the government than later opened up crown land and started building Moro more properties therefore there has been no capital growth. Should I sell and move on
Hi Dave,
First up, I’d suggest looking at the investment with ‘fresh eyes’. By that, as I mentioned in an earlier Steveism – “Start with the end, and end with the start.” That is, specifying:
1. What return you want (growth and income)
2. What time frame you want it in
3. How much risk is there associated with the investment
4. How much aggravation is there associated with the investment
Having answered the questions for what you want, I would then compare it against your assessment for the property you mentioned. If it aligns well then you have a strong argument for keeping it. If it doesn’t, then it may be time to redeploy.
Another question you may want to ask is “Would I buy the property again (as a property investment) at today’s price?” If not, then it’s hard to argue why you should hold on to it as an investment.
Regards,
– Steve
Thanks Steve
Solid advice.
Hi Steve,
What I am really appreciating with these “Steveisms” is how you tend to sprinkle extra gems throughout the video that aren’t in the written text accompanying the video.
The videos aren’t just adding steak knives either – more like a brand new BBQ !! Top stuff mate,
Benny
That’s very kind Benny. Thank you.
I did not want the videos to just be a repeat of the text, but rather to add new elements and examples to broaden the understanding / application of the Steveism.
Snags are up! :-) Chops won’t be long.
– Steve
As simple as this message is, it is extremely powerful. I personally have had multiple investment opportunities pass me by when i thought they were going to fit well into my investment strategy but others opinions differed. It is great to listen to others advice, specifically if you respect them but please remember to sense check that against your own wealth creation strategy. Those people are not privy to your exact conditions, they do not know your risk tolerance, investment strategy, financial position, personal drive etc.
Educate yourself, create a strategy and back your judgement!
Well said Richard M. Thanks for your contribution.
Another angle not mentioned here is when you buy an asset you wish you hadn’t. That is, a well meaning person has talked you into buying something that has turned out to be a dud. Anyone had that experience? I know I have with shares. Unfortunately, greed got in the way of good management.
Cheers,
– Steve
I appreciate that you need to follow your own investment risk profile, but having a partner that has a very different and negative profile makes any investing difficult. Maybe that is a deal breaker for the partnership.
Yes Peter M, having a partner that isn’t on the same page can be a major frustration and investing impediment. In such instances I recommend spending time working out:
1. First: what it is you do agree on
2. Second: what it is you don’t agree on
3. Third: why it is you don’t agree
4. Fourth: a compromise where everyone feels they gave some ground but still won.
If you can provide some more information about the disagreement I can try and brainstorm some solutions with you… just reply if you’d like some help.
– Steve
I totally agree with you need to skill up and buy on fact not opinion keep your family and friends close , but not close that they lead you follow the Hurd of not investing due to all the risks involved and there friends that have been burnt and lost money so they think you will be next
Thanks for allways providing valuable advise and education Steve
Hi Steve,
I like this advice, it reminds me of what Robert Kiyosaki says, no one will care about your money more than yourself. Don’t be swayed by all the opinions out there, if you ask 10 different people for advice on real estate investing you may get 5-6 different opinions on what you should do. Absorb the knowledge from the experts, but ultimately use your knowledge, and judgement to make your own decision and stick with it.
Tim
Thanks Tim.
I agree. The most important plan is one you make yourself.
I like this saying: If you don’t have a plan for your money, someone else does!
– Steve
If I asked my folks what to invest in, they would shrug their shoulders and say put it in a savings account at 1% p.a.
Well, that’s better than spending it!
On a serious note though, interest at 1% will be taxed, and the real (after inflation) after-tax return will be negative, which means the money is really going backwards.
Regards,
– Steve
Hi Steve,
What are your predictions over the next year for the Canberra unit market? :)
Hi Tim,
I haven’t kept a close eye on the Canberra market for a while now, so unfortunately I am not the one to pass expert comment here. Does anyone else want to share their opinion though? What do you think Tim?
– Steve
I think over the next year due to quite a bit of supply in units coming up, prices overall will go up slightly. The outer suburbs will slow down due to the extra supply, and inner south will go up a bit. Some areas the banks are more reluctant to lend to such as the city, Belconnen, Dickson due to the increased supply.