It is super easy to make money with money.... that is what has been said. What it actually means is that people who are good with money know how to make it and identify opportunities when they see them. They have the capital, and more specifically, the courage to take put their money to work.
Making money is a mindset, a willingness to do what it takes.
That may mean forgoing lifestyle comfort in the short term to reap the rewards down the line. It’s more than hard work. I know plenty of people who work hard all their life only to retire on the pension. It’s working smarter and have your money work for you rather then you working for your money.
If you really want to gain financial independence, you need to make some really honest assessments about your life and expenditure. I have had potential clients come to me saying they want to purchase an investment property, but can’t seem to get a deposit together. People will often spend to their limit and usually the more people earn the less likely they are to budget, as there is always enough cash coming in to cover the splurges they have. People on lower incomes or tighter budgets tend to have a better understanding of where each dollar goes, but there is always room for savings.
The idea of working out your budget is not to strip every dollar out of your income and put it towards property investing. It is so you can work out how much you want to put towards an investment property and make sure that you have a budget that is sustainable and will provide the cash that is required each week to meet your investment requirements. Once you know how much you have to spend we can find a property that fits the budget, rather then try to create a budget that fits the property.
It helps to equip yourself with understanding the investment property process. You might realise that you’re already in a position to buy an investment property. Do you have equity in your house or some money in the bank? It may be enough for a deposit for a property, albeit that property may not be on Hedges avenue. However, it will be a stepping stone to buying a property on the beach, if that’s what you want.
Being aware and benefiting from all the taxation and depreciation allowances that are available to you as a property owner will also help fund the investment. You can opt for a fully positive geared property or a negatively geared property that benefits from depreciation allowances which help off set the cost of holding the property.
Search for properties with multiple income streams to help spread the risk and increase the return. This doesn’t necessarily mean a block of flats, but it may be a dual occupancy, a house and granny flat, or multiple strata commercial properties.
There is more than one way to skin a cat, and sometimes it might mean having someone else look at your spending to see the savings solutions where you can’t or don’t want to.