Taking your first step into the property market is a journey that requires time and patience. And you need patience if you’re going to save enough money to afford the property you want to buy or to find the perfect one to invest in. We live in a world today that doesn’t necessarily encourage this quality. Our society is set up so we can get what we want when we want it, and our busy lives make us time poor.
This is a problem Harvee Pene – a recent guest on the Get Invested podcast – knows all too well. On the show, we talked about finding the right motivators for saving the money you need to invest in your future, and in this article, I’m going to be sharing some of his advice with you around goal-setting, the right mindset you need, and steps you can take to start saving wisely.
Your Finances Are Finite
The amount of money you earn is a limited resource. When you deal with something that will run out, you need to ensure you treat it with respect. If you don’t pay attention, you’ll find that you spend too much and waste what you have. This will result in no savings and push you further away from your investment goals. The best approach is one that I call the 50-30-20 rule. It works by dividing up your cash flow into 50% for living expenses, 30% for disposable income and 20% for savings. This will ensure that you have all your bases covered and won’t blow all your cash in a hurry.
Focus on Goals, Not Savings
In order to save money for your future investments, the best way is not to focus on it. This obviously seems counterintuitive, but the truth is that money is rarely a motivator. Instead, you should focus on something else, such as the ideal lifestyle that you want to lead. By focusing on this rather than the amount of money you need to achieve it, you’ll be more successful in saving to invest. Adopting this mindset will give you the strength you need to keep going, instead of blowing your hard-earned cash in the short-term.
The stronger and clearer the goal that you’re working towards, the better motivation you will have. This will give you a solid guide to work out what your priorities need to be for your financial goals. If you want to invest in property, look at it as more than simply brick and mortar. Look at it as a home for your family, security for your future, and a tried and tested path to achieving your dream lifestyle.
Many advisors will tell you all about setting financial goals, but the reality is that this usually isn’t enough. Property investment is a long-term strategy – it requires patience and, in my experience, strong goals to help you get there.
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Listen to my entire conversation with Harvee here!