This past weekend the weather was finally amazing to get out in the garden, dig through the earth with my fingers and pull out all the weeds before planting my vegetable garden. It got me thinking that it takes one seed at a time to harvest your garden.
What if we took the same view on our investments?
When we first start we are so keen to learn and invest in anything that comes our way – but that can be foolhardy – especially when it comes to investing! WHY?
Ask any successful real estate investor and he or she she will tell you that the secret to their success was knowledge. They learned everything they could before investing in their first property. They planted one seed at a time! Did they stop there? No they keep learning and applying that knowledge to build on their portfolio.
As an investor you must take your time to learn, which strategy suits you best. Is it student rentals, multi-family, rent to own, buy & hold, flipping, just to name a few? Or is it lending your money for a great return or investing in syndicated mortgages or even 2nd mortgages?
Lending your money or investing in 2nd mortgages, may not provide as big returns as a bricks and mortar property, but you also don’t have the hassle of being a landlord and dealing with tenant issues.
I was recently approached by a financial advisor, who only believed that the road to wealth was paved on people investing in the stock market. I have nothing against financial advisors, but being a person who lost a lot in the 2009 crash, I did not want to repeat past mistakes, which included investing in the stock market. Does that mean I don’t invest in the stock market at all? NO – I do but I self-direct my investmetns and don’t leave it to somebody else to do it for me – thus I don’t incur huge MER (management expense ratio) fees, which can cut into the growth of my investments. He could not understand why I would not recommend him to my clients.
Taking charge of your financial future should not be left up to somebody else – burrying your head in the sand and hoping your money will be taken care of is also foolhardy! Does it take work to look after your finances? YES, but isn’t it more rewarding to see your garden grow when you have planted those initial seeds yourself?
Planting those seeds takes time but when that garden (investment portfolio) starts to grow, you will reap the rewards!
To your Wealth!