By Cam McLellan
My business partner Al Lewison and I came up with our Property Wealth Workout of the Day video series after being asked what the most important rule for investing was. We sat down and started talking about that and what we decided is that there isn’t one most important rule, there is more like 20 rules, and each of those rules, across different aspects of property investing, have a sub-set of rules under them.
The way we learnt about these rules was through talking regularly with each other, driving and pushing each other along. If one of us found out any information, we’d call the other and let them know about it, that person would then read up more about it and come back with what they’d learnt.
With our knowledge growing together and pushing each other to get better and better over a duration of time, we realised it was almost daily that we were finding out new information. Given that there is so much information out there, we decided to make the Property Wealth WODs to help others grow their own knowledge base.
Whilst we are known as one of the richest countries in the world, the reality is we are going to get a lot richer, given that we haven’t even really started to break in to our mineral sources. The natural gas pipeline that will be going through will increase export and what this all means is that the amount of money coming in to Australia, as over the past few years already, will increase dramatically. Looking recently at some charts we noticed there is a scale going through the roof, of the amount of money coming in to Australia. But the reality of this is a lot of people can’t get their hands on this stream of money.
People working for an income, or a wage, consulting, small business and the self-employed are basically “cupping” a little bit of money from the “stream” and then taking that back to feed their family. This is a process that they repeat, day after day but do not really get anywhere when it comes to achieving real wealth.
The light bulb went off for me when I realised that we could channel the money from the main river to myself, and create my own pool of wealth. By having growth investment properties, all of a sudden the next five years when I was first building my initial portfolio and I was only earning $22,000 a year, meant that although I was working for someone else, I was creating my own money pool. This meant that I wasn’t having to walk back to the stream every day for the rest of my life.
Another thing happened, and this is something that I always smirk about – just to get through the day I used to have to kiss butt to senior management. But when I walked away at the end of each day I would grin, as I knew I was much richer than them. I don’t want to sound arrogant here, but think of it this way – when someone annoys you at work, you nod and smile but when you walk away you know you’ve got a portfolio that they haven’t.
So understanding money flow is imperative to your investment journey. For a breakdown on the different types of money flow click HERE.
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