Day 12

Do you have financial goals?

Are they financial goals that allow you to stop worrying about money and rest knowing every week the money will flow in without much effort at all?

Do you want money hitting your bank account without much thought or effort, especially when you stop working?

If you do not set passive income goals, it is unlikely that you will understand the intricate steps required to reach your target. The early compounding result of doing some major transactions earlier in your property investing career will have a massive impact on your chances for success. I talk about passive income here.

People do not often get financial freedom easily or without disciplined time management.

Let’s start with a logic-based rationale on why we choose to invest in property as a vehicle for wealth building as opposed to alternative investment options.

Check out video 4 for a quick overview of different investment options

This is a video from the Property Formula Workshop. There are several unlocked for you and included in this course. To get access to all videos and spreadsheet calculators please apply for the workshop.

Unless you have a lot of starting capital or a long time, investing in shares and your KiwiSaver is unlikely to get you into the millions you will want by the time you retire.

Shares are likely to be volatile and you cannot easily control the results of your investments… your returns are strongly impacted by the market and require you to either employ an active manager, choose the stocks yourself, or trust/hope that a passive fund does what it is supposed to do and produce steady returns.

If you want to stop trading time for money and utilise leverage that allows you to start making million-dollar plays, then property investing is a much quicker pathway for a lot of people compared to other options.

Setting your passive income goal as a number, like $200,000 a year, gives you a target to reverse engineer from. We can assess how many property investments you need to make between now and then, and how much debt/leverage is reasonable and safe to help us get there.

Passive income is about creating Financial Freedom. You earn what you need from your investments without daily effort allowing you to spend your time on whatever makes you happy.

Blandon’s video on the 3 stages of passive income (week 8 of the course) is a broad overview of the pathway when using property investment as your vehicle.

If you want help reverse-engineering the numbers then fill out and let’s get a spreadsheet going for you. If you are not quite ready to do anything just yet, update your snapshot for some quick insights

A mortgagehq adviser will help you assess your options based on your current situation and help you understand realistic goals based on your projected actions and timelines.


Andrew & Blandon

P.S. Tomorrow we discuss why NOT to max out when buying the next property to leave room in the tank.