I was reading a book over the weekend about various kinds of real estate investment strategies that people are using to create wealth.
It was sort of an eagle-eye view of the investing landscape and an attempt to compare strategies to find the best wealth vehicle.
It definitely had a “He who dies with the most money – WINS” flavour about it.
So let me ask you what you think…
Would you rather spend 5 years going crazy, leveraging to the max and churning through deal after deal building equity and holdings… after which you can live the rest of your life doing just 2 or 3 deals a year and making excellent money (and never having to work for someone else again?)
Would you rather take 10 or 15 years – take your time, take less risk but end up with a really solid portfolio and passive income (plus some excellent capital growth) but have to work longer in a job, only concentrating on property part-time or on your weekends and evenings?
This was the choice presented in this book… So what do you reckon? Which would you choose?
There's a thing in human psychology which marketers and therapists use to catch people unawares.
…it's called a double bind…
Would you like fries or coke with that burger?
Would you like that car in red or blue?
(or the one I heard recently to use on fussy eating kids: Would you like 3 or 5 pieces of broccoli?)
Presented with only two choices, most people choose the lesser of the two evils… or the most attractive option.
Which is what this book was asking.
“Do you want to use this strategy to create wealth ffast or slow?”
Trouble is that when presented with this choice most people do not consider that there is a third option… (or a fourth).
In the case of investing I'd personally choose neither of those two options.
Investing to me is a way to support my lifestyle.
I could make a tonne more money if I were more active. I could make more money taking my course sales pitch on the road doing a series of speaking engagements…
But that's never gonna happen!
First I'm quite shy and don't like speaking in front of a big group of strangers…
Second I love the pace I work at… Surfing every morning, pottering around my shed and properties fixing up little things, taking care of little things I need to do to keep my affairs in order…
…and once or twice a year tinkering with one of my properties or buying a new one.
The one option that this book didn't present was choosing an investment style that gives you cash flow up front in an amount you can actually live on.
It's true that other strategies “could” give you more wealth in the long run… You “might” end up with gazillions and be driving around in 400,000 dollar sports cars… but at what cost?
How many years did they invest in working to get to that stage?
The other day I did the Byron Bay lighthouse walk… it was a Tuesday morning… the weather was spectacular, and when we got to the top we were rewarded with the most incredible display of breaching whales.
It was a breathtaking moment – it went on for about 15 minutes – then they were gone.
I spent the rest of the day so grateful and feeling blessed. I got to catch this moment at 10:30 on a Tuesday… while so many were at work, grinding away under the close watch of some tuppenny tyrant for a boss.
It's not the big things that matter when it comes down to it…
You can have all the money in the world when you retire, but it won't ever let you catch up on the little day to day moments of magic that you miss out on while you're grinding away trying to make that retirement fund happen.
Those little moments are slipping by moment by moment… and it's time you got to experience them… do you think?