Secret Number 4: Buy Investments for Your Future Not Where You Are Now
Over the years I have made it an obsession to study the wealthy and understand what it is that they do differently from everybody else? What is it that gives them the cutting edge over the middle class? and what gives them the Midas touch?
The Wealthy invest for the future they do not invest for the situation they are in today. They look for trends and start investing for the situation they want to have in 5 years time or their end game.
Let’s take Rosie (purely fictional) who is 48 and wishes to retire in 5 years time. She is on $180,000 a year and is advised to buy some properties to negatively gear (nothing wrong with negative gearing just hear the story out) Now Rosie is going to have to find an extra $100-200per week to cover the cost of the properties. Rosie wants to retire in 5 years time and will experience a drop in income not too much because she has been very diligent with her money, but do you think these properties will be a good investment in 5 years time? Will it still be a good idea for Rosie to be forking out $100-$200 a week on investment properties? Will it be better for Rosie to maybe pay a bit more tax now for a better outcome in 5 years time?
I will let you think about that.
This is why it’s so important for you to consider your End Game when you are investing. Where do you want to be in 5 years time? When do you want to retire? Will this investment end up costing you in the long run? You need to work this out with each investment that you consider before you buy it.
Look Forward To Meeting You.