Property investing is a long-term plan, aimed at wealth accumulation.
Money is just a method of keeping score. Let us not forget why money was created in the first place. Money is just printed paper, with a value that everyone agrees upon at that point in time. It was created to be used as a form of payment that is convenient in exchanged for better wealth vehicles or other services. In the olden days, barter trade was done: you use 10 pigs in exchange for 5 bags of rice. Or maybe 200 pigs were exchanged for a property. Imagine the difficulties of driving 200 pigs to the new owner. And the owner may not know what to do with it! Hence, money was invented!
Here’s the thing: so, you have made $x amount of money. What happens next? It is what you DO WITH THE MONEY that is important, and NOT how much more money you have with your friends. At the end of the day, you may not really know what your friends are experiencing and vice-versa. Maybe your friends are more motivated than you due to some personal reasons that you are not aware of. After all, you may not know your friends as well as you think. And truth to be told, how much money your friends make is really none of your business. If you think about it, you are certainly not going to use it, so why fret about it? Just focus on your own life and family!
Many of us started out with investing for ourselves (so that we have some cash flow when we retire for our daily expenditures, travels, and medical expenses. Naturally, we would prefer to be as independent as possible for as long as possible.), for our children (for their university fees, as a backup plan for them), and for our parents (so that it will be easier for us to take care of them). Somewhere along the lines, we got too caught up with being afraid to lose out.
This is especially apparent when Type A and Type B investors are having a discussion on property investing. As I mentioned, these 2 types of personality do not mix well. So, whenever a Type B investors tells a Type A investor about how many properties he has and the Type A investor most probably feel a rush of competitiveness, a feeling of fear of losing to his old friend. On the other hand, when a type A investor happily shares with a Type B investor about how much money he made within a short time frame, he will most of the time feel a sense of rush to sell his properties, or he will wonder whether it is the right thing to do by holding on to his property.
Hence, knowing why and who are you investing for, helps you focus on your goals. Many investors forgot why they are investing. They got caught up in the I-must-not-lose-out-to-my-friends game. Re-look into why you got into investing in the first place! Perhaps you are investing for your family. Make sure you have a picture of your family in your wallet or handbag. Whenever you lose your focus, tap your wallet. Use it as a reminder to focus on your goals. You may also be investing for your round-the-world trip with your spouse when both of you retire. Take a world map and use stickers to mark the places you want to visit. Use your own creativity to focus on your goals. And you need not share this with anyone so it can be whatever you want it to be! You might even want to share your dream with your children!
[End of Part 3: Knowing what and where your priorities are]