Escape The Rat Race
Today, I want to talk about a common roadblock that tends to hold most investors back from the success that they really do deserve.
This is a common barrier for most investors.
But there are easy ways that you can break through these roadblocks to get you on that path to success.
Let’s talk about the rat race
A lot of Australians come out of the school system, unfortunately very poorly prepared to create wealth. We get taught how to create an income, and unfortunately, this then becomes a habit of thinking that the more income we earn, then sooner or later somehow, it’s going to turn into wealth.
But typically, what it does is it equates to worse buying habits and loading up on all sorts of loans and so forth that require you to work even harder making sure that you are permanently trapped in the rat race.
The first thing you need is to be self-aware, and being self-aware is always the first step when you know you’re working too hard, and things need to change.
Conversations will change in your household, and you’ll start looking for the answers.
Good Debt and Bad Debt
One of the biggest breakthroughs will come when you learn the difference between good debt and bad debt.
Most Australians load themselves up on Bad debt – credit card debt, personal loans, even your family home is a bad debt.
When you understand the good debt that really allows you to claim every cent that you pay in interest as a tax deduction, that’s the sort of debt that you can never have enough of.
You should be loading up and getting the leverage of helping you buy as many assets as you can with that sort of debt keeping your loans as low as possible.
If you can claim the interest on those loans as a tax deduction, that is the difference between good and bad debt along the way.
Those loans that you take on, even if you can claim the interest, also be careful that you are protecting your pocket.
Lunch Money Property Millionaire
I was often referred to as the ‘lunch money property millionaire’, and the way that came about was, I’ve always believed if you can’t buy it with your lunch money, then don’t by it. I could never understand why people bought properties that cost them hundreds of dollars each week.
So please, if you are going to buy investment properties, take advantage of the good debt.
But don’t expose your pocket.
You can buy amazing properties that are cash flow neutral or even cash flow positive, and you do not need to put pressure on your pocket.
These ingredients together will certainly help you escape the rat race much sooner than you can possibly imagine.