APIA Blog

RSS Feed

12 skills future millionaires develop in their 20s

Sunday, March 26, 2017

The start of any new journey is undoubtedly daunting and rudderless. Wealth building is no different. Newcomers to the property market often struggle for a clear direction. You know where you want to get to, you just don’t know how to get there.
 
Over the years, we have had the great pleasure of accompanying many APIA members on their own personal wealth journey. We have seen impressive successes as well as disappointing failures. Throughout it all, we have noticed 12 common skills property millionaires develop from a young age.  By embracing and developing these skills early on, you too will become the master of your financial destiny.
 
1. BUY INTO YOUR OWN VERSION OF SUCCESS

You are not on a journey unless there is a destination. Similarly, you cannot become successful unless you know exactly what success means to you.  Our cultural parameters are such that we are often pressured into accepting other people's idea of what is successful and impressive.  To cave into that social pressure is to live a life that is not yours.  So learn to appreciate loving advice skeptically and embrace the freedom you have to set your own goals and create your own version of a successful life! 

Related article: How to prosper in 2017 - 17 tips to become a better property investor

 
2. ACT WITH A SENSE OF URGENCY

Successful investors work towards internal, rather than external, deadlines.  They do not buy into the you-have-got-to-buy-three-properties-by-the-end-of-2017-or-you-are-a-nobody baloney.  Instead, they work to their own timeline without frivolous delays.  They are prone to action and do not saddle valuable time with unproductive thoughts.  Real wealth takes hard work, there is no such thing as an overnight millionaire.  So the next time you find yourself bemoaning a lack of progress to a friend, put that bottle of beer down and put your time to better use.  You will never get as far as you would like without learning to self-motivate.

 

3. UNDERSTAND THE DIFFERENCE BETWEEN VALUE AND COST 

You will never master money until you understand the difference between value and cost.  These are two very distinctive concepts that are commonly and mistakenly interchanged by our common lexicon.  Everything has a value as well as a cost and these two numbers are not always the same.  Understanding the subtle difference will help you make better financial decisions.  As an investor, you always want to be thinking about maximising value and minimising cost.  The money you spend investing should reflect that. 

 

4. INVEST IN YOUR EDUCATION

When you buy real estate without the right knowledge, you are not investing, you are gambling.  In that case, you may as well spend your money in a casino, it is far more entertaining than open homes and auction rooms.  Successful investors are known for their prodigious knowledge and insatiable hunger to learn.  As you journey along the path to financial freedom, you will be asked to make a series of critical decisions which you cannot do without the right information and knowledge.  Be a better learner today.  Get into the habit of reading a book a week, join your local investor group, and show up to the seminars.  It is not hard.  Stephen Fry once described knowledge as pebbles on the road that are literally everywhere, you just need to bend down to pick them up.  And you know when Stephen Fry says something on TV, it must be true! 

 

5. BECOME A MASTER OF YOUR OWN TIME

Ever heard the saying that you can always make more money but never more time?  Value your time over your bank account balance.  The money you can make in this lifetime is unlimited, but the time you have to make that money is limited.  Don't treat your time as a sunk cost, get into the habit of spending most of your time adding value to your life and experience.  Ditch the negative friend and resign from the boss who doesn't value you or your future.  

Related article: How to value your time

Related article: How to invest in property when you have a full time job?

 

6. FOCUS MORE ON EARNING THAN SAVING

Saving is a fantastic habit to get into.  Some might even say that it is a prerequisite to building wealth.  That said, you will never save your way to becoming a millionaire.  And that is a fact.  To build wealth with real estate, you have to think broadly and think long term.  Given that your time on earth is limited, how can you maximise your earning potential?  Appreciate the power of multiple (and preferably passive) income streams and start creating them for yourself.  Find ways to make every dollar of your money work for you (investing!).  Get your head around the nuances of debt - bad debts keep you behind while good debts propel you forward.  

 

7. LIVE A HEALTHY AND BALANCED LIFE

Time and time again scientists have proven that an active and healthy body leads to a more productive and successful life.  You don't have to be a gym bunny or live on salad leaves.  At the very least, put some time aside each day to get some fresh air, get those muscles moving, and declutter your mind.  Learn to tune out and end that nasty dependency you have with your phone.  No amount of technology can replace the positive relationships you have with those who love and support you.  

 

8. LEARN TO NEGOTIATE

Take control of your destiny and understand that you, and you alone, are the advocate for your own welfare.  But we do not exist in isolation so you must learn how to negotiate to advance your own interests.  Negotiation is something many of us instinctively shy away from because we confuse it with conflict.  If you accept the premise that almost everything in life is negotiable, then you must also accept that your position in life can always be improved by negotiating.  Learn to clearly communicate and put forward your position, identify mutually beneficial outcomes, focus on the big picture rather than being bogged down by the nitty-gritty, and most of all, learn to swallow your ego and walk away.  

 

9. FIND YOUR INNER ENTREPRENEUR

Don't worry, you don't have to be a Mark Zuckerberg to be rich.  The big public profiles entrepreneurs enjoy these days greatly distort our understanding of what it means to be entreperneurial.  You don't have to code the next biggest social media tweet-snap-insta-book-platform and flog IPO shares, but you do need to be a master of opportunities.  Harvard Business School Profession Howard Stevenson gives an apt definition for entrepreneurship as the pursuit of opporuntity without regard to resources currently controlled.  To be succssful at investing in any market, you must learn to think like an entrepreneur, uncover opportunities, and take full advantage with the resources you have at your disposal.  

 

10. LOOK UP TO AND BE GUIDED YOUR MENTORS 

Be it a paid or gratis mentor, you should always seek out someone who has had experience in what you are doing and be willing to provide positive guidance to help you forward.  This is particularly true in the case of property investment which, let's be honest, isn't the most innovative of ways to create wealth.  What ever your strategy is, chances are, someone has already done it.  You will be in an far more advantageous position if you allow yourself to be guided by their experience, mistakes, and lessons.  

Related article: Evidence vs eminence - are you impressed or just infatuated?

 

11. NETWORK NETWORK NETWORK 

Ever wonder why the rich-listers all seem to be buddies with one another?  The secret is in networking.  No man is an island, you cannot get far in life by doing it all yourself.  When you network, you are not only showcasing your strengths to others but also identifying those to whom you can outsource your weaknesses.  Get yourself listed on Linkedin, participating in business networking events, and always be ready to talk about your work and passion.  Once you have created an impression, people will think of you when great opportunities present themselves. 

Related article: A wallflower blooms - networking tips for introverts

 

12. DON'T BLUFF 

Insincerity stinks and it is a bad smell you can't shake.  Spend less time talking about your achievements and more time getting to the next level.  Be known for what you do rather than what you say.  Give people realistic expectations and keep communications when plans change.  Your reputation is valuable currency that will help you out in tight spots time and time again.  Just remember, no one ever gets rich by acting like a muppet. 

 

 

 

 

 

 

Recent Posts


Tags

building ventilation tenant travel bubble LIM anti-social behaviour reserve bank government equity wins banking election2020 heater Must know cash-flow financial advisers act buying investment strategy rental wof beginner investor Level 4 education holiday house skill shortage return extractor fan trust meth rta reform landlord asbestos property value negotiation wealth creation Guest blog finance parry v inglis tenancy services RTAA 2019 renovation principal and interest inspection Tribunal case study off the plan recycling equity How to relationship Property (Relationships) Act market water bill business HHGA smoke alarm rental market early termination data security RBNZ debt to income tenancy tribunal opes partners sublease property nzpif letting rent increase ring-fencing clnz first home buying warm up new zealand anz boarding house interest only bankruptcy quiet enjoyment initio Standards New Zealand robert kiyosaki interest deductibility unitary plan auckland council retaliatory notice DTI gluckman report fixed-term tenancy CCC capital gain ird Q&A advice Sponsored post market rent worksafe sale and purchas investor mortgage legal cost khh airbnb rtaa2020 structure lvr short term rental Question and answer legal heating Zodiak Management barfoot and thompson HSWA shower dome rent control Market report brightline re agent partners property cycle productivity maintenance heat pump Landlording inflation TCIT interest rates warren buffett letting fee meth contamination ocr Gluckman mindset auckland rent bad tenant election 2017 rent arrears television trespass bond form bond privacy housing bubble housing package development damage house prices subdivision rta Investor story positive cash flow p lab debt enforcement insulation winz personal growth Kris Pedersen Mortgages and Insurance tax apia yield short-term rental Investment tip twg report insurance property apprentice income Must knows management buyer's agent property management Jeff Bezos cgt will property maintenance ask an expert minor dwelling covid-19 interest limitation HHS termination shortland chartered accountants buying rules commerce commission daikin tenancy issues scotney williams sale and purchase housing affordability Holler CoreLogic watercare kiwibuild trademe Editor's Choice cat Case study speculator

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo