As easy as ABC....

[DaleGG]

Hi

This is something that has crossed my mind, of late. I hope that it makes sense and is of some value to the forum....

Financial Success – As Easy as ABC




Over the last ten years, I have watched clients; friends and others make different progress on their journey towards wealth creation ranging from none at all, to small steps, to even leaving us behind in their wake.

In looking at this progress, we have noticed that the successful people are simply those that followed the ABC of investing:

• Action
• Belief
• Commitment


A is for Action

It seems that no matter how many books you read; seminars that you attend or discussions that you have on line, or in person, with brokers; accountants or anyone else….unless you take action on a regular and constant basis you will not achieve the wealth and success that you wish to achieve.

Taking action requires making decisions and acting on them immediately rather than procrastinating and letting the moment get away from you.

Taking action requires reviewing your situation on a regular basis almost to the point of diarising appointments every six to 12 months with your banker or mortgage broker to assess your situation and see if you can afford to take more action.

Taking action is constantly looking for a deal to do.


B is for Belief

Belief is a funny thing….Some of us have a natural belief in our own ability; in the universe or a deity; and some of us struggle to maintain a faith.

It is my observation that successful investors believe in what they are doing; and believe in themselves to be able to do what they know they must do to achieve the results they wish to achieve.

It is this belief, or faith, that holds them together when problems arise and things do not go quite as planned.


C is for Commitment

For wealth creation to be achieved you must make a commitment to the journey as it will take time to come together for you.

During this journey, you will be tempted by distractions such as wanting to spend money on toys and your lifestyle to meet your immediate wants rather than saving and investing for an uncertain future.

During this journey, you will have problems with banks; real estate agents; tenants; and financial advisors. Moreover, you will see property prices stagnate or even slump from time to time and you will see interest rates rise testing your faith and your commitment to your journey.

Without a firm commitment to yourself and your partner, if appropriate, these tests of your beliefs can be enough to deter you from taking action and, as such, they can side track your journey towards financial wealth.

Maintaining your commitment to this journey is therefore essential to your success.



Summary

We hear so many people talking about the “Best” type of investment; the “Best” structure to use; the “Best” type of finance ; or the “Best” suburb to buy in…..in reality though, I tend to think that all of these are less important than simply following the ABC’s and repeating the process again and again.

Have fun

Dale

 

[AndyB]

Hi

This is something that has crossed my mind, of late. I hope that it makes sense and is of some value to the forum....

Financial Success – As Easy as ABC

Thanks Dale,

Just finished printing out and pinning on noticeboard. Your words really struck a chord and re-confirmed what I am doing is as "easy" as ABC.

Thanks
Andrew

 

[Jacque]

D
E
F

D for determination: to carry one's goals and plans through, refining and improving along the way

E for exit strategies firmly in place. We may not see a need at the beginning of our investment journey, but Plan B is often needed, along with little cats C, D and even E

F for fun along the way. Don't forget to reward your efforts with a little pat on the back occasionally, and an acknowledgement that it's not all serious.

Thanks Dale- nice insight to kick off the afternoon

 

[Peter Parker]

In looking at this progress, we have noticed that the successful people are simply those that followed the ABC of investing:

• Action
• Belief
• Commitment

Dale, are they necessarily in that order, or is a different order preferable?

1. Action - just jump in, do it anyway, even if you don't fully know the whys and wherefores
2. Belief - it seems to work so then you believe in it
3. Commitment - since you have belief and proof that it works you do it again and hope you get the same results

Alternatively:

1. Belief - study and read until you're convinced IP investment is right for you and you have an answer for every conceivable risk
2. Action - taken after you're energised by this belief
3. Commitment - since you have belief and proof that it works you do it again and hope you get the same results

Or maybe even place commitment before action (especially if you're mortgaging yourself to the eyeballs on a low yielding development site for your first IP).

The latter is the more prudent approach. But if you knew everything before acting you might not ever act. Also in a rising market the 'buy now, worry later' approach has made some investors (gamblers?) a lot of money, but it can bankrupt others, such as we see on programs about Westpoint, Henry Kaye, Quinlevan, etc.

Peter

 

[DaleGG]

Hi Peter

I do not know is the honest answer.
However, all I wanted to achieve was to try to take the mysticism out of investing and make it is simple as possible for others to follow and implement.

I see too many people not doing well because they think they have to get it absolutely right instead of following a simple formula over and over again.

I think Jacque's suggestions are excellent, too.

Have fun

Dale

 

[yadreamin]

Thanks DaleGG

Wisdom becomes you


l too printed it out.
I am also guilty of believing that its not as simple as ABC, but l am just about over that now.
cheers yadreamin

 

[Eddy]

Thanks DaleGG

As a 'newie' to investing in property, I've overloaded myself with information! It can put your head into a spin! I've printed off the ABCs too - it'll help me keep investing in perspective.

The forum is great by the way

Cheers
Eddy

 

[bevan]

Thanks DaleGG for some excellent wisdom. This is topic close to my heart, I hope people get some benefit.

I'm very impressed with the wisdom in this thread. It is as
simple as ABC. However there are different strategies at
a deeper level to putting ABC into action. And everyone reading this forum is
well on their way.

Action: Absolutley we must take action, but without belief, well why would
we? Without belief, aren't we really gambling, or just entering the property
lotto?

Belief: Ok so belief can help us to take action. This then begs the question "How do I create belief?".
Well association is helpfull. We read and hear many successful people teach about association and mentoring. 'A rising tide raises all boats'. By associating on a regular basis with people who have acheived what we want we will pretty much automagically develop the belief, in turn be encouraged and inspired to take action, and thirdly be accountable and make the decision for step 3, commitment.

Commitment: Again why would we commit and take action without belief. And why would we take the steps down the road on which we find the evidence to develop our beleif without a reason.

This brings me to 'Whats your reason?'

Why do you want to invest in property, is it just for fun? Is it the sense of acheivment, the thrill of the deal? is it a vehicle to take us down the road to the lifestyle we dream of, passive income?

So it's the reason that makes the ABC's work, we need to get in touch with our values, our dreams. What is it we're trying to acheive. Without this clearly visible in our minds, we won't make the commitment, when the hurdles come along we may feel it's to hard and not take the action necessary to get to the goal.

But anyway, isn't this something that we (myself) included would be well off to stop talking about and start doing. All this information is already recorded in wonderfull books like think and grow rich. Not to dispute the benefits of this forum, it's more exposure and association. Which is what brings me here. I wish every all the best on the journey down the road to their dreams.

 

[Ace in the Hole]

Hi

This is something that has crossed my mind, of late. I hope that it makes sense and is of some value to the forum....

Financial Success – As Easy as ABC




Over the last ten years, I have watched clients; friends and others make different progress on their journey towards wealth creation ranging from none at all, to small steps, to even leaving us behind in their wake.

In looking at this progress, we have noticed that the successful people are simply those that followed the ABC of investing:

• Action
• Belief
• Commitment

Thaks for your wisdom Dale.
Bumping this thread to aware others that it really doesn't have to be complicated.

 

[Peter Parker]

Is action really first, or should the order be different?

I would suggest the less memorable acronym of BCA:

1. Belief
2. Commitment
3. Action

You need to believe in it first.

If you don't believe in it you can't commit.

If you can't commit, you don't act.

 

[Ace in the Hole]

Some people over analyze and get never take that first step.
Do a Nike.
Mistakes made are for lessons to be learnt and for experience to be gained.

 

[Andrew_A]

And some excellent wisdom also from DaleGG.

The magic question, through which you can filter all investing questions. Paraphrased as I can't remember the exact wording...

'Does this action bring me closer to my financial goals'

 

[MTR]

I really like this guy Jordon Belfort he sums up how to be wildly successful at the end of the interview


http://www.youtube.com/watch?v=G3K92uugO9o

 

[wategos]

"Belief" doesn?t help very much in a dropping market. Incorrect beliefs can do a lot of harm.

 

[knightm]

This thread is very important.

I think the order varies a little with personality type and experience/history.

For me it was

1 D (desire)
2 E (education)
3 B (belief)
4 A (action)
5 C (committment)

I had the desire but needed to educate myself first because I REALLY struggled to hold onto belief. My conditioning had to be overcome, it told me that "risky" investing would fail. I periodically re educate myself along the way when I have a season of doubt. It helps restore my belief and increase my desire which spurs me to action.