Quite often I have people come to me with an ambition to take action to create wealth and achieve specific objectives – this is good – but quite often without a view on how they are going to go about to do that. They are full of questions; Where should I buy? What type of property should I buy? Do I buy for growth or yield? What should my long term strategy be? Whats the best way to be tax effective?
I love discussing investment, but what a lot of people don’t realise is that legally Mortgage Brokers can’t give specific financial advice. The role of a broker in short is to assess your financial situation and identify the most suitable mortgage products that apply to your specific situation and goals.
Along with this you are best advised to work in consultation with your accountant or financial planner/advisor to frame up your overall strategy.
There is something however, that is more fundamentally important than the advice or expertise of other people – and that is your own education.
With my background in investment and specifically history with property I’m always more than happy to share my story with my clients. So I’ll share today how I started investing by getting educated.
During my investment journey I didn’t have a mentor, any specific advice or anyone push me in a certain direction when it came to what to buy or what to do. I had a normal education, wasn’t at the top of the class at high school but got the grades to get into the business degree that I wanted (which was marketing… worth noting I never became a marketer!).
Throughout my entire formal education nobody taught me how to make money, how to manage money or how to invest. I’d imagine this was a typical experience for most of you out there. I’m sure there are further degrees and courses that might help go down this path but for me I opted for self directed learning; to help address this knowledge gap that stood in front of my ambition of being financially free.
When you do start down the path of trying to educate yourself in the immense world of investments, there are a multitude of opinions and information. Today more so than ever, it can be hard to distill through the “fake news” and get a real view on the world. Anyone watching the Bitcoin situation at the moment can attest to that (today at the time of writing this it was hit $21,420, and Ripple has gone 10x in the last month!).
To help cut through all this to some practical investment philosophy I’ll share some key books that I started with to shape my own education. Perhaps you’ve read them, and if not then I would encourage you to get a copy of each:
- Rich Dad, Poor Dad (Robert Kiyosaki): A personable story about investment “mindset” which really inspired me to action.
- Wealth Magic (Peter Spann): In similar style to the above, with some different principles around investment.
- 0-130 Properties in 3.5 Years (Steve McKnight): Specifically around building a cashflow positive portfolio (slightly different to some strategies outlined in Wealth Magic).
Plenty has happened in the world since those books were written, including to the authors themselves! But to be fair this isn’t about them or their specific story, it is about you and developing yourself to think about things differently so that you can forge your own path and success.
I maintain to this day the most important investment I ever made when it came to forging a successful investment path was this investment in myself. What I’d hope you’d get out of these books would be what I got; a new way of thinking and a renewed motivation to go and achieve freedom!
Our first daughter Elizabeth circa 6 months old… learning about money? As parents we will be making sure she is educated properly and practically about money!