In Robert Kiyosaki’s “Guide to Investing” he requests readers write a plan to be each of the following:
- To be poor (to me means the “default” be a worker and consumer plan, followed by the pension)
- To be secure (to me means the good job, reasonable super and some the low-risk consumer investments plans a financial advisor may offer, ie a self funded minimal pension with a bonus of a bottle of red each week)
- To be comfortable (which I call financial independence, enjoying the good stuff within reason)
- To be rich (to have more than enough, a life of abundance for yourself and for your children and grandchildren)
Since I am actively investing in property (a managed development and holding my other 2 investment properties), I have come to the conclusion that IP is fundamentally boring, which is neither good nor bad, and after some consideration on the subject, the degree of excitement in IP would probably correspond to a degree of doing the wrong things. This forum shall I say keeps the flame alive and the mind focused from distractions. But I digress.
Always Leaning thinks I have a) and b) in the “bag” and working towards c) which I believe I will achieve using with my current plan of buy, develop or renovate, hold. Being financially independent however will take at least 10 years and more like 15 to execute.
However following the request in the “Guide to Investing” to make a plan to be rich that I want help with, presently I have very few “ideas” and no good ideas how to achieve being “rich”. With my current strategy it doesnt expand/scale up to allow me to be “rich” from property investment, given my current income (low 6 figures).
Rich
What is being “rich” for me? I think rich is $5M of wealth/equity and using around $5M of financial leaverage total $10M, with net income of 4% and average of 6% growth, my combined income and asset base and wealth would be growing at $1M year => this is rich (for me). $1M a year of wealth is more than I could spend and would offer a life of abundance for me and my family and also allow for me to expand upon my current charitable contributions.
Delicious
Digg
