In a previous article I explained how despite us living in a land of plenty, the sad reality is that the majority of Australians will never achieve financial freedom.
On the other hand a small group of Australian property investors are becoming very wealthy.
Today I continue exploring the common money myths that hold many people back from achieving their financial goals.
Myth # 8: The rich are lucky.
The truth is that success in wealth creation is no more about luck than is success in anything else in life. To become wealthy you have to be in control of your finances and not count on good fortune.
When you have a proven investment system or strategy, luck becomes unnecessary.
As a child I used to play Monopoly. Sometimes I won, sometimes I lost.
As an adult I’ve played Monopoly a couple of times with some financially intelligent people and I realise now that, contrary to what I thought when I was young, it’s not a game of luck.
Good players know the right spots on the board to get the best return on their investments. They know how to acquire and control the best “monopolies” in order to collect the highest rents.
They’ve learned to negotiate and find ways to make great deals. They’ve learned how to take the luck out of Monopoly and consistently win big as a result.
To me, this sounds a whole lot like the real world of investing. You need to learn how to take the luck out of wealth creation and instead develop smart strategies to get ahead. First you need to learn how to play the game, and then you need to know how to win the game.
Myth # 9: To become rich you must diversify.
Wrong! Yet that’s what most financial planners suggest isn’t it? Diversification leads to an average outcome. I’ve found that successful investors don’t diversify -they cultivate the skills required to make better, smarter investing decisions and specialise in one niche.
Myth # 10: Paying off your house provides security.
This is one of the old myths many of us learned from our parents, who probably learned it from their parents. But it doesn’t make sense in the new financial era.
The problem here is that once you’ve paid off your house, you end up with idle equity sitting under your roof doing nothing; equity you could use as a deposit to buy an investment property and grow your wealth.
Myth # 11: All the good investments are taken.
That’s not true – opportunities are always out there – in every market. Sometimes there are a lot and sometimes there aren’t. Some are obvious and others are opportunities you create by understanding investment markets. Sure, all of yesterday’s deals have been taken, but tomorrow’s deals have not. Someone will snap them up. Why shouldn’t it be you?
Myth # 12: If you want to do it right, you have to do it yourself.
There’s no such thing as a self made millionaire. All successful property investors have a good team of professional advisors and supportive mentors around them.
That doesn’t mean you should hand over full responsibility for your wealth creation to others. But the rich recognise that they can’t be an expert in all aspects of wealth creation, so they find a team of experts they can lead in order to help them achieve their goals.
Myth # 13: I’ve done everything wrong! It’s too late.
It’s never too late to learn how to invest or to overcome your mistakes. There are many success stories of people who conquered all sorts of adversity, or started investing later in life and ended up achieving financial freedom.
In fact Ray Croc was over 50 years old when he built his very first fast food outlet. You might have heard of it – it’s called McDonald’s.
Myth # 14: Debt is bad
Most Australians believe debt is a dirty word, but not all debt is bad. Savvy property investors know how to use good debt to buy appreciating assets.
Myth # 15: It doesn’t matter what I want – I just can’t do it.
Subscribing to this myth is almost a guarantee of failure, because our beliefs and perceptions become our reality. Some people who’ve had a few failed attempts “learn” that wealth is beyond their control and they can’t affect the outcome.
They remain in a cycle of victimisation all their lives.
[sam id=37 codes=’true’]This is one of the reasons why the rich get richer – they believe they are in control of their destiny. You must also believe you’re in control and act as if you’re in control.
Then pretty soon you’ll be surprised by the results you achieve. Invariably, the more success you have the more your thoughts about what you can and can’t control will alter for the better. Yes – you can do it!
There’s no way money can know who’s in control of it, what their qualifications are, what ambitions they have or what they’re going to do with it. Money is there to be used and spent, saved and invested. It can’t judge whether you’re worthy or not.
Now that you understand some of the myths that have held so many people back, the good news is you can do things differently. Choose to change your beliefs to produce outrageous results and reach every goal you set.
Of course while property investing may be simple it’s not easy. And that’s not a play on words.
Fact is, around 20% of those who get involved in property investment sell up in the first year and close to half sell their property in the first 5 years.
And of those investors who stay in property, about 90% never get past their second property.
So if you want financial freedom from property investment to fund your dreams, you’re going to have to do something different to what most property investors are doing. You’re going to have to listen to different people to who most Australian property investors listen.
You’re going to need to set yourself some goals and follow a strategy that’s known, proven and trusted.
Then you grow your property investment businesses one property at a time.
Of course…you need to buy the right type of properties.
One that has a level of scarcity, meaning they will be in continuous strong demand by owner occupiers (to keep pushing up the value) and tenants (to help subsidise your mortgage); in the right location (one that has outperformed the long term averages), at the right time in the property cycle (that would be now in many states) and for the right price.
To become a successful investor you will need to surround yourself with a team of independent and unbiased professional advisors (not sales people) – a team of people who are known, proven and trusted, so it is probably appropriate to remind you that in changing times like we are experiencing, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team at Metropole have no properties to sell, so their advice is independent and unbiased.
If you’re serious about property investment please join me and a group of property and tax experts at my upcoming Property Market and Economic Updates that I’ll be conducting in 4 states in August and September 2013
I will be presenting a heap of BRAND NEW content I haven’t discussed in public before. I guarantee there will be several things I reveal that you are not doing and you should be!
Click here now to get more details and reserve your seat.
If you want to cut through all of the media hype, and all the contradictory predictions, and finally learn the truth (good and bad) about what is going to happen to the Australian property markets, this seminar is exactly for you… Click here now to get more details and reserve your seat.
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.