What is Financial Independence & how do you find it?
Parts of this article originally appeared in the May/June 2021 issue of SUCCESS magazine. Photo Courtesy of Tony Robbins
The sharpest-shooting basketball player in the world, Stephen Curry, forces himself to make 10 straight free throws at the end of every training session. Legendary musician Yo-Yo Ma plays his cello every single day, even if it’s just for a few minutes. And famously prolific novelist Jodi Picoult makes sure she gets some words down on paper each day no matter what.
Practice makes perfect for nearly everything in life, and personal finance is no exception. It takes decades of work to achieve the financial goals we set for ourselves. Often, this lifelong journey involves a trusted advisor who can help us stay on track toward our goals.
It’s important to remember one thing: Financial freedom isn’t just about money.
“We all want to be truly free,” Tony Robbins writes in his book The Path. “Free to do more of what we want, when we want, and to share it with those we love. Free to live with passion, with generosity, with gratitude and with peace of mind. This is financial freedom. It’s not an amount of money; it’s a state of mind.”
Time Is Your Friend
We all crave the thrill that accompanies a quick financial win, but when it comes to your investments, time is your best friend. We believe in investing for the long term with research accompanying decisions, looking at and analyzing the numbers (the numbers must stack up and make sense) and following a structured and tested process. Investing is a journey.
Watching your money grow slowly and steadily over many years is easier said than done. The biggest financial mistake people make is panicking and selling whether it is shares, property or managed funds. People think big events like 9/11, the financial crisis of 2008 and the COVID-19 pandemic will cause lasting economic damage. But no matter what, the economy always bounces back.
“When things are going well, people think it’s going to be springtime forever,” Robbins says. “When things are dark and stormy, they think it’s going to be wintertime forever. But I’m a student of history, and it’s always cyclical.”
Cultivate Patience
Mastering your finances is just like mastering your mindset—it doesn’t happen overnight. It takes years, if not decades, to see a true transformation. “I think the secret to patience is knowing what your outcome is and focusing on still making progress,” Robbins says. “It’s about momentum and being a student of what works.”
These five strategies can help you stay on track toward your long-term financial goals:
HOME in on what matters.
Be strategic about the financial news you consume. If you have investments in the stock market or in direct property, there’s no need to check the ASX and RP Data every day. You will only drive yourself crazy. Instead, spend those 30 minutes doing something valuable like reading a book about financial strategy.
LEARN to be comfortable with risk.
Even the safest investments have a level of risk—tolerating it is simply part of the game. “Risk is the secret to success,” Robbins says. As we say at IFP Advisory if you want to succeed—in business, in property investing and in life —you have to learn how to deal with risk.
FOCUS on what you already have.
When we ask people at our many events and through our fact find whether they focus more on what they currently have or what’s missing, 80 percent say – what they are missing.
The key to understand is that high achievers tend to focus on self-improvement. But, if you’re always focusing on what you are missing, you will never be able to attain true happiness. Change your mindset to focus on what you do have. This will completely transform your thoughts and therefore your outcomes.
DON’T MAKE impulsive decisions.
If you find yourself tempted to make rash decisions with your money, you’re not alone. The critical thing is that you think about it and work with your advisers.
For people looking to invest in property we have a structured process. This process initially involved working through a fact finder to determine where you currently are in your investment journey, where you want to be, determine your risk profile, consider your financial situation (income and outgoings, assets and liabilities), leading towards a property investment plan etc. By doing this you are working through a tried and tested outcome driven structured process.
KNOW your limits.
The world’s most skilled investors didn’t make it big due to one or two lucky investments—they’ve spent their lives learning how to be the best at what they do.
Those who choose to view the world through an optimistic lens will prosper, according to Robbins. “Some people freeze to death in the winter,” he says. “Other people learn how to snowboard and spend time with their family by a warm fire because they know winter is not forever.”
Contact us on john@ifpadvisory.com.au so we can work with you to create long term growth with your property investment portfolio.
Some excellent links
Melbourne property market in ‘catch-22’ as empty nesters dig in
Young families have been struggling to secure the homes they want – and older Aussies are staying put. This is partly causing scarcity in the market which may be contributing to rising property prices.
Read more: Melbourne property market in ‘catch-22’ as empty nesters dig in
Property investors urged to seek tax advice amid COVID-19
CPA Australia warned property investors and landlords to turn to their tax agents this tax time.
Challenges such as rent moratoriums and mortgage repayment holidays need to be considered in their claims this financial year.
Tenancy course
For those with rental property, getting the right tenant is a huge concern. For tenants, it can be hard to land a good rental amongst the competition.
An innovative new tenancy skills program is being offered to equip tenants with the skills they need to maintain a successful tenancy.
- Read more: Tenancy course
What’s on your travel bucket list?
It looks like we’re staying put in Oz for a few years – which places in the world are you missing most? Here are the most searched for bucket list experiences:
Until next time….
Remember to contact us so we can work with you to create long-term growth with your property investment portfolio.
Now is such a great time to consider investing.
We have conducted the research (with our research and acquisitions team) and have many great opportunities that we can discuss with you. We base all decisions on information we gather from you and the detailed research we conduct.
Have an awesome day!
Cheers,
John and the IFP Advisory Team
