5 Simple Reasons Most People Won’t Become Rich – And How To Make Sure You Do.

by

Michael Yardney

Having worked with hundreds and hundreds of property investors over the years, I discovered a number of ‘secrets’ that make some people rich while others continue to struggle.

When you understand and do what successful investors do, you get to become one of them. If you don’t understand and do what they do, you don’t get to become one. It’s really that simple. Here are 5 simple reasons most people will never get rich and how to make sure you do: Reason #1 – Waiting to start: Most people don’t want to wait for success. But, at the same time, they are willing to wait before getting started on the road to success. Do you see the problem here? The longer you wait to get started, the longer it will be before you get the money, success, and lifestyle you want. It takes time to grow real wealth. It takes time for the power of compounding to work its magic. Many people are waiting for everything to be perfect before they get going. Which means they never get going and never get the rewards. You need to understand that the timing will never be perfect or you will never have all the information you want. You need to develop the confidence to make an investment decision based on knowing enough and real sing that you will learnt he rest along the way. No race has ever been won (or even finished) by someone who never left the starting line. Don’t wait to get going. Start today on the road to success. Reason #2 – Being financially illiterate: The cornerstone of wealth is becoming financially fluent – understanding the language of money. This starts with simple things such as the difference between assets and liabilities. The difference is this – assets put money IN your pocket, liabilities take money OUT of your pocket. Most people think their car; the latest plasma TV and many of their possessions are assets. But the truth is that in most cases those things take money out of your pocket. They cost you money. They don’t make you money. Therefore, by the true definition above, those things are liabilities. They take money OUT of your pocket each month. When you have more money coming IN from real assets than you have going OUT to pay for liabilities, you will be financially free. There is only one way to do this. Which brings us to… Reason #3 – Focusing on linear income instead of passive income: To put it simply “if you’re not making money while you sleep, you’ll never be rich.” It is important to realise that not all incomes are created equal. Some streams are linear and some are passive. Linear income is what you get from a job. You work for an hour and get paid once for that one hour’s work, and that’s it. Passive income is when you work once but continue to get paid over and over again from work you’re no longer doing. The way to become wealthy is having passive income coming in whether you go to work or not. Wouldn’t it be nice to be paid hundreds of times for every hour you work? Investing in assets such as sound investments that provide passive income in the form of capital growth and rental returns is your ticket to wealth. Reason #4 – Not using systems for making money: A system for making money is something that allows you to make money without your own effort. In other words, it’s an automated way to make money. My preferred system is investing in high growth property. In particular I invest in high growth properties in areas that are in the upturn stage of the property cycle. I buy them at fair value and then add more value through renovations or redevelopment. I never sell these properties. I borrow against the increasing equity in my property portfolio to buy more properties. Once you create a proven system for making money, there is no limit to the money you can make. Reason #5 – Not being persistent or patient enough: To finish any race you have to leave the starting line and follow through to the finish line. Most people create their own failure by either not getting started or not following through, or both. To become rich, successful, and happy you must have the patience and persistence to cross the finish line. You must not only get started, but also follow through. Sure this may sound obvious, but it’s still the cause of most failure. By joining the small percentage of people who are willing to do the 5 things mentioned above will you have the greatest chances for wealth and success. It’s really quite simple… Decide to do these things and you are much more likely to get rich too. If you don’t do them, then like most people you may never get rich.

Michael Yardney is widely considered as Australia’s leading expert in wealth creation through property investment.

As a property commentator, his opinions are frequently quoted in the media. He is a best selling author of 3 books and publisher of a leading property investment e-magazine Property Update with over 45,000 subscribers. You can subscribe for free at http://www.PropertyUpdate.com.au You can view his company website – http://www.metropole.com.au

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5 Simple Reasons Most People Won’t Become Rich – And How To Make Sure You Do.