I’m often asked what I would do differently if I could live my investing journey all over again. Many mistakes have been made, but I’ve learnt from each one – and now you can too
I’m often asked what I would do differently if I could live my investing journey all over again. Many mistakes have been made, but I’ve learnt from each one – and now you can too
I've certainly made my fair share of mistakes along the way and paid huge ‘learning fees’ because of them. However, instead of being defeated, I learned from each error and moved forward a little bit wiser.
If you ask me, that’s one of the keys to investment success – the ability to pick yourself up from setbacks, learn what you can from them (including your own limitations), and simply try again.
So, to help prevent you from making the same mistakes, I’ve put together a list of 16 things I wish I knew when I first started investing.
My first couple of investments were successful, but the worst thing that can happen to a beginning investor is to get it right the first time – you think you’re smarter than you are. In truth my early successes were because of a rising market rather than my own ‘brilliance’.
Thankfully I recognised this and set about becoming better educated by reading books and seeking out teachers, mentors and consultants for advice.
And I still continue with my education and personal development to this very day.
When I say it like that, it doesn’t make any sense, does it? Obviously you must begin with the end in mind.
Setting goals helps you focus, because if you don’t know where you’re going, while any road may get you there, every road may also get you lost.
As Jim Rohn said: “If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.
While property investing may be simple, it’s not easy, and that’s not a play on words – it takes skill. And sometimes those skills should come from other people who know more than you do. So create a good team around you, including mentors and advisors or your ‘brains trust’, as I like to call it
However, if you’re the smartest person in your team, you’re probably in trouble.
Here’s another great quote from Jim Rohn: “Don’t wish it were easier, wish you were better. Don’t wish for less problems, wish for more skills.”
What do I mean by that? An analogy is to think of yourself as a cup. If your cup is small you can only accumulate a small amount of money; any extra will spill over and you will lose it. You simply cannot have more money than the size of your cup.
Instead, develop an abundance mindset in which your cup is big and deserving of being filled with success.
Far too many people can’t resist the instant gratification of buying that shiny new toy using their credit card, thinking the money in their limit is theirs. It’s not; it’s the bank’s money you pay interest on for the privilege of using.
To become rich you must learn to delay gratification, as wealth is the transfer of money from the impatient to the patient.
One of the keys, therefore, is to overcome your fears and learn to be comfortable with being a little uncomfortable in the beginning.
Most people worry about things that will never happen, and all this does is prevent them from achieving success. Instead save your worrying for when there’s something to worry about.
As you can see, there are a number of things that I have learned along the way that have helped me become a more successful investor. So here’s my recommendation: consider implementing some of these strategies into your life today and I guarantee that success will be closer than it was yesterday.
Next month I’ll share another eight things I wish I had known earlier.
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Michael Yardney is director of Metropole Property Strategists and one of Australia’s leading experts in wealth creation through property. He is also a bestselling author and writes the Property Update blog
This article first appeared in MPA's sister publication Your Investment Property
I've certainly made my fair share of mistakes along the way and paid huge ‘learning fees’ because of them. However, instead of being defeated, I learned from each error and moved forward a little bit wiser.
If you ask me, that’s one of the keys to investment success – the ability to pick yourself up from setbacks, learn what you can from them (including your own limitations), and simply try again.
So, to help prevent you from making the same mistakes, I’ve put together a list of 16 things I wish I knew when I first started investing.
- The value of education
My first couple of investments were successful, but the worst thing that can happen to a beginning investor is to get it right the first time – you think you’re smarter than you are. In truth my early successes were because of a rising market rather than my own ‘brilliance’.
Thankfully I recognised this and set about becoming better educated by reading books and seeking out teachers, mentors and consultants for advice.
And I still continue with my education and personal development to this very day.
- Goal setting
When I say it like that, it doesn’t make any sense, does it? Obviously you must begin with the end in mind.
Setting goals helps you focus, because if you don’t know where you’re going, while any road may get you there, every road may also get you lost.
As Jim Rohn said: “If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.
- Create a property team
While property investing may be simple, it’s not easy, and that’s not a play on words – it takes skill. And sometimes those skills should come from other people who know more than you do. So create a good team around you, including mentors and advisors or your ‘brains trust’, as I like to call it
However, if you’re the smartest person in your team, you’re probably in trouble.
- Think rich, not poor
Here’s another great quote from Jim Rohn: “Don’t wish it were easier, wish you were better. Don’t wish for less problems, wish for more skills.”
- Have an abundance mindset
What do I mean by that? An analogy is to think of yourself as a cup. If your cup is small you can only accumulate a small amount of money; any extra will spill over and you will lose it. You simply cannot have more money than the size of your cup.
Instead, develop an abundance mindset in which your cup is big and deserving of being filled with success.
- Delaying gratification
Far too many people can’t resist the instant gratification of buying that shiny new toy using their credit card, thinking the money in their limit is theirs. It’s not; it’s the bank’s money you pay interest on for the privilege of using.
To become rich you must learn to delay gratification, as wealth is the transfer of money from the impatient to the patient.
- Overcome your fears
One of the keys, therefore, is to overcome your fears and learn to be comfortable with being a little uncomfortable in the beginning.
- Don’t let failure hold you back
Most people worry about things that will never happen, and all this does is prevent them from achieving success. Instead save your worrying for when there’s something to worry about.
As you can see, there are a number of things that I have learned along the way that have helped me become a more successful investor. So here’s my recommendation: consider implementing some of these strategies into your life today and I guarantee that success will be closer than it was yesterday.
Next month I’ll share another eight things I wish I had known earlier.
Michael Yardney is director of Metropole Property Strategists and one of Australia’s leading experts in wealth creation through property. He is also a bestselling author and writes the Property Update blog
This article first appeared in MPA's sister publication Your Investment Property
