THINK OUTSIDE OF THE BOX IN 2022
What I love about a new year is that it is a new beginning, a new page, an opportunity to change and improve.
But let’s ask the tough questions for a moment. How much wealth have you built up to now? Is your wealth growing sufficiently? And most importantly, what are you going to do DIFFERENTLY this year to build more wealth?
Only 6% of South Africans can retire comfortably. We all know this statistic, yet much more than 6% of the population think they are part of that 6%.
I don’t only want to retire comfortably, I want to LIVE comfortably, and I had to shift some of my paradigms.
As a young man, I received this advice from an experienced investor: “You don’t save yourself rich, you buy yourself rich.” Robert Kiyosaki is much more direct: “Savers are losers”. This concept took a long time to sink in.
How do you buy yourself rich? You purchase assets that appreciate and generate positive cash flow. Having retirement annuities or pensions funds are not enough. They are paper assets. You must have more tangible assets in your portfolio as well.
In one of our previous articles, Lessons We Can Learn from Warren Buffet about Investing, we explore the philosophies of how one of the world’s most successful investors invest.
Investment properties are also great tangible assets to have in your investment portfolio. For me, the BEST is that property gives me two returns – Capital growth (capital appreciation) and rental income (cash flow). Property is also one of the few assets that one can acquire with very little of your money.
When investing in property, make sure that you have the correct structuring is place. Read more about this in our article, Not Having A Trust Is The Biggest Mistake You Can Make.
You can also read our previous article, Your Property Forecast… Cloudy with a Chance of Making it Rain, to learn more about the current trends in the property market in South Africa.
Ensure you have enough money to live financially free and build that second (or third or fourth) stream of income and build your property investment portfolio.