When it comes to taking control of your personal finances, the sad reality is, most people prefer to bury their head in the sand.
In fact, in a recent survey of thousands of property investors about budgeting, 54% said they had no budget at all. Imagine that – more than one in two do not monitor their spending!
I can empathise. It can be confronting and uncomfortable to face the reality of your own financial situation.
Personally, I avoided it for a long time, but when you find that your savings account balance never rose above $1,000, you realize that it is time to take some action steps.
At first, the results weren’t pretty, but slowly we chipped away and started moving in the right direction
How a budget can help make you Rich
Now, when I work with new investors, one of the first things we do is review or create a budget.
Because, let me put it this way: how do you expect to create wealth if you don’t know how to manage your money?
How do you know how much you can afford to spend on an investment property, if you don’t even know how much you currently spend on your own household expenses?
I can’t stress enough the importance of investing the time to create a budget, so that you know where your money goes.
This really is a vital step that you can’t afford to skip. Budgeting really is a key ingredient of wealth creation, therefore you need to find the time to do it – and properly!
Far too often, people opt to plead ignorance when it comes to personal finance, as they view budgets as being limiting or restrictive.
However, I view budgets as being the exact opposite. Budgeting shouldn’t be a negative experience – it should be empowering!
Monitoring your spending gives you an indication of where you can make improvements and trim your budget, but it’s not about cutting out “life’s little pleasures”.
If buying a cup of coffee on the way to work every day is important to you, then you don’t have to give that up.
However, if you complete a budget and discover that you buy a morning coffee, plus a sandwich and a drink for lunch, and a magazine twice a week to read on the train home… well, that’s around $75 a week – or $4,000 a year.
Factor in a lunch date here, a new dress there and takeaways two nights a week, and you can easily rack up $250 a week. That’s over $10,000 a year, blown on fun yet non-essential discretionary items.
And you thought you couldn’t afford to invest in property! There’s never a better time to get started on saving than now.
“Golden Opportunities and Threats of Investing in a Hot Market”
That’s because we’re currently in a ‘hot’ property market. This means it’s possible to snag quick capital growth of up to $70,000…$90,000…or even $100,000 or more, over the next 12 to 24 months.
You can then use this newfound equity to ‘leapfrog’ into more properties…and elevate your personal wealth even faster.
However, it’s also possible to lose your shirt…by paying too much for a property in the ‘heat of the market’. Making this mistake can set you back years in your personal wealth building. Sadly, some investors never financially recover.
That’s why I strongly suggest you book a Complimentary Initial Discussion. We can quickly assess your current situation and determine if investing is an option for you right now.
So simply call us on 0409228554 to schedule a meeting.
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