What are your top 5 tips for investing?
1. In the best of all possible worlds, what would you really want to happen? Think about what YOU want and how YOU want to design your journey in this lifetime. I’ve met thousands of people in the last seven years and most are still in the same space because they don’t know what they really want out of life.
2. Be very clear and focused on whether you want to be an investor or a saver. I have an interesting article on this topic and it is often misunderstood. Investing is the process of building financial wealth. Saving is setting money aside now (i.e., foregoing current consumption) to spend it later. An example of saving would be buying real estate to fund retirement. Investors never really “spend” their financial capital, but continue to manage it going forward. The building process continues even as we begin to use our financial capital.
3. Kiwis are excellent DIYers. Trust me: this is the hard way to do anything. Whether you want to become New Zealand’s Donald Trump or save for a spectacular early retirement with real estate, build a TEAM of trusted advisors who can guide you in achieving your dreams.
4. Should you choose to become an investor you need to know more and constantly educate yourself in a wide range of subjects. As a saver or new investor, you need professional advisors to give you advice. A professional investor, on the other hand, needs a professional advisor to help execute plans.
5. Good planning is important, but an effective implementation is crucial! Don’t get stuck with chasing the perfect plan or the latest fad of an investment technique. To plan for your financial future, a boring old-fashioned rental property in a good location bought today will always beat the perfect deal purchased with the newest technique one day in the future.