Reply: 1
From: Sim' Hampel
On 6/24/02 5:42:00 PM, Paul Hendriks wrote:
>Hi Sim,
>
>You mentioned in the post
>Money Secrets of the Rich that
>you take a bit of JB's advise
>on board...
Yeah, I like his approach to debt reduction and management, but it's not something I practice. Since I got married, I haven't had a problem with debt ;-)
Automatic Investments are good if you take the simple and long term approach... buy something good, don't touch it for at least 20 years. I have some of these.
If you want more short term results, you have to be much more proactive about asset selection and timing.
>Can I assume you save your 10%
>gross & put this in an offset
>account for future I/P's
>instead of shares etc or do
>you mix it a bit (as you
>mentioned ask me in 20yrs)
I save all I can save. I don't budget, but am in the fortunate situation of having a high surplus income. I have an amount of money I want to be saving each month, and I use tools such as Quicken to monitor expenses, both predicted, and unexpected on a continual basis, and adjust spending as we go based on my forecasts.
Right now all our cash goes into an offset account, and we are accumulating that cash for future use, which will most likely NOT be IP related.
My IP purchases are currently being funded purely out of equity. When we run out of equity, I will look at a new strategy.
A certain percentage of my pay comes out automatically (before it hits my bank account) which is used to buy shares and such, which I intend to hold long term. In fact I love it when the price drops, because I am in accumulation phase, I prefer to buy cheap !
>So basically you focus on
>using his principles , but for
>your Financial Freedom vehicle
>(pos or neutral) cash flow
>properties?
I wouldn't say I focus on Burley's principles, but I do borrow a bit from them. I don't believe any one person has all the answers. I read a lot, and pick what I think are the best bits of each. I then try and incorporate those principles into my own strategy.
My "Financial Freedom vehicle" as you call it, is a mixture of property and shares, held long term, preferably debt free. Other things like cash and trading both property and shares, are simply tools to help me accumulate more property. I'm hoping to add business to these tools soon too.
