When you start to build an investment portfolio, it is important that you keep momentum and stay focused. There are so many competing ideas and distractions in life. By staying focused on your plan, you will achieve your investment goals.
When I was 24 years old I purchased my first home. A year or so later, my business partner and I purchased an office where we ran our company.
In the following ten years, I purchased six properties. Within the first few years, I realised that I had established a pattern. Each December I seemed to be buying a property and then settling on it the following year. I would arrange the loan, arrange the tenants, and then let this new addition to my portfolio settle in. By the time the following December had come around I was ready to ‘go again’ and buy another property.
What I had was momentum and focus.
Have you ever noticed that when you take a holiday from work, it takes a while to get back into the swing? Investing is something that should be back of mind at all times. It is not fashionable to worry about your retirement when you are young. The inconvenient truth is that starting young and pacing your investments in your 20’s, by maintaining your momentum and focus statistics tell us that you may retire up to four times easier than someone starting to invest to retire in their 40’s.
It is one thing for someone to preach at you to stay focused and it is another thing to be focused. This really is the key and the underlying difference between an average investor and a great investor.
I have to tell you a funny story. One day I had to meet with a famous restaurateur for a charity I was working with. We parked the car at the rear of the restaurant and we walked down to the front entrance. Upon meeting the manager, I was told that the restaurateur was far too busy to meet us because of a function that night. He was very apologetic and could we come back later.
Walking back to the car I smiled, because there was a man walking through the car park who stopped to pick up a piece of rubbish. My guess was, he was the famous man I had come to see. My colleague questioned my logic and I said anyone who grows a famous restaurant must be incredibly driven with some pedantic traits required to be the best, would never allow rubbish in the car park. A staff member on the other hand would probably walk right on by and not see the rubbish. I was right and we got our audience with him right there and then, in the car park.
So how do you grow a property portfolio if you are a high driver or pedantic person? You must have a plan. Build in realistic goals and timeframes and we benchmark yourself against the plan. Seek out others who have done well and learn from them.
Like James Collins says; greatness is a conscious choice underpinned by discipline.
Build this type of thinking into your wealth creation and you will drive it home by a conscious momentum and focus. Don’t just stop at one property, like the average Australian investor does. Why be good, when you can be great!
An extract from Lynne’s book ‘The Formula – A mentor’s guide to confident property investing’