Month: November 2020

It’s an absolute fact that what we focus on is what we get… so having gratitude right now is more important than ever.

Whilst it can feel hard to be thankful during a pandemic, along with our friends across the pond celebrating Thanksgiving this week, I’ve also taken time to reflect and acknowledge many points of light in what will likely be viewed as a pretty dark year.

I really like the ethos of thanksgiving and can see why for some it’s their favourite day of the year. There’s no pressure related to giving gifts but rather a day to focus on good food, family and gratitude. It’s a time to simply take inventory of all the wonderful things and wonderful people we have in our lives that we are thankful for. 

Gratitude does so much for us, especially as property entrepreneurs, but we often don’t realise it. Here are just a few reasons why having gratitude is essential for people in property:

-It allows us to push through obstacles along the rollercoaster journey that is property.

-It allows us to enjoy the journey and stay sane by measuring incremental progress rather than the gap to a big goal.

-It allows us to change our perspective for the better, so that we can see that everything happens for us rather than to us, even with those things that can seem so difficult in the moment.

-It allows us to genuinely connect with people, because ultimately, property is a people business. 

So, in the spirit of Thanksgiving, here are just a few things I’m grateful for in 2020…

-That external challenges didn’t stop me from pushing forward.

-That I have my incredible wife Emma and my three boys with me healthy and happy at home.

-That I have an ongoing burning desire to BECOME more, ACHIEVE more and HELP more and more people.

-All of our paying customers (ie the guests and tenants in all of our properties).

-That Chris and I have created property businesses we love working on and for which the future is exciting.

-That I hold my future in my hands… success and failure is all up to me (and so it is for you!).

I heard property investor and mentor Dean Graziosi say that, “happiness is not about the luck of circumstances. It’s about how you approach life… with a grateful heart”, and I wholeheartedly agree.

I hope you can find your own points of light as you look back on your 2020 to date, and spend some time giving thanks- why not share with us a couple of things you are grateful for?

If you earned the exact amount of money you desired from your property investments and businesses, do you know how you would allocate it?

In last week’s post I shared a 6 step process, from the book Think and Grow Rich, to create your wealth vision.[If you missed it I’ll link to it at the bottom so you can go back and get those 6 steps].

If you have already read that post you’ll remember that the very first step is to – 

“Fix in your mind the exact amount of money you desire. It is not sufficient merely to say ‘I want plenty of money.’ Be definite as to the amount.”

When I worked through the 6 steps for my own planning I found myself wondering how I could best come up with that exact figure. I found the answer in recalling that there is another great wealth calculation from a book I’d read years ago – The Millionaire Fastlane. 

So, for those interested, I felt this simple calculation will help you define the ‘exact amount of money your desire’.

Below I outline the 3 steps so you can follow along and replicate for your context:

STEP 1: DEFINE THE LIFESTYLE YOU WANT

So now is when you need to put your imagination to work by asking yourself, what exactly do you want? Do you want the X bedroom house in Y location, or the XYZ charitable foundation, or the…? You literally need to take the time to write everything down.

For the purpose of this illustration, I will share the same example that the author MJ Demarco uses in the book. In his example, lets say his dream lifestyle included the following:

Three cars: Mercedes, a hybrid and a minivan

A 6000 SQFT house with a fountain, pool and a waterfall

A small cabin in the mountains

The ability to travel 3 months a year

Private school for the kids

Do this for yourself to list out what you are working towards.

STEP 2: ASSESS THE COST OF YOUR DREAM LIFESTYLE

In this step you need to assess the monthly cost for each, including all associated taxes and insurance. [Note- by researching these costs you will start to move from vague dreams to a much greater sense of clarity and connection to the dream thing].

So, back to MJ Demarco’s example (although I’ll swap the $ signs out for £ signs at least since we’re not in the States 😉

Three cars: Mercedes, a hybrid and a minivan: £2000

A 6000 SQFT house with a fountain, pool and a waterfall: £5000

A small cabin in the mountains: £1000

The ability to travel 3 months a year: £1000

Private school for the kids: £1000

Dream lifestyle cost = £10,000/month

The next thing you need to determine is your monthly living expenses that run alongside the dream lifestyle. So this would include all other monthly outgoings like food, clothes, health, things for kids, eating and drinking out etc.

For MJ’s example he assigned £4000/month to living expenses (monthly allowance). 

Now you add this amount to your dream lifestyle cost to arrive at your Gross Living Cost, as below:

Gross Living Cost = £10,000/mth (lifestyle cost) + £4000 (Allowances) = £14,000

Next you determine your Net Living Cost by dividing Gross Living Cost by .60. This will crudely account for the higher tax band (however your affairs may be set up differently and you’ll no doubt be working with your accountant to minimise tax leakage and make use of things like capital allowances).

To continue the example

Net Living Cost = £14,000/.60 = £23,333/mth

STEP 3: SET THE TARGETS FOR YOUR MONEY SYSTEM AND BUSINESS INCOME

If you haven’t read Millionaire Fastlane, it introduces you to the concept of creating both a money system (ie a way to earn interest off your capital) and a business system (ie your primary income source from your main entrepreneurial endeavour).

The goal of step 3 is to set the targets for these two systems. To calculate your money system target, multiply your Net Living Cost by 12, then divide by 5%, or .05. Five percent is the minimum expected yield on a money system used in his example. 

Money System Target = (£23,333 x 12)/0.05 = £5,599,920

In other words, that’s how much cash you would need to have invested and working at a rate of 5% annually in order to deliver the gross income needed to fund this example dream lifestyle. 

For the business system target, multiply the Gross Living Cost by 5.

Business System Target = £14,000 x 5 = £70,000/mth

Now you have 2 defined targets. First, seek to create a business system that generates £70,000/mth ie this could be from a deal packaging business, an SA business, Rent to Buys, or any combination of property related income that best suits you. 

Of this income:

40% goes to paying taxes (appreciate that’s a crude calc so you can reapportion for taxes)

40% goes to fund your money system

20% pays your lifestyle 

This delivers your target lifestyle AND simultaneously funds your money system. 

With these figures known, you can then go back to completing Napoleon Hill’s 6 steps to map out the what, the how and the when.

Who’s going to have a go and figure out their property wealth calculation?

LINK TO 6 STEPS TO MAKE YOUR FUTURE SELF A MILLIONAIRE

Is your future self in a better financial position than where you are now? I really hope that becomes the case.

If you are serious about making this a reality, whether through property or another business avenue you know how to leverage, I’m super excited to share with you this 6 step method below. 

These 6 steps are nothing I can lay claim to, I am the mere messenger here. The information originally came from Andrew Carnegie (the Scottish-American steel entrepreneur who became one of the wealthiest men of his time having started out as a labourer). 

What further validates these steps is that Thomas Edison said of them, “not only are the steps essential for the accumulation of money, but for the attainment of any goal”.

Many of you may have at some point seen or heard these before, and let the information pass through your brain without actioning it – much like I did the first time I read Think & Grow Rich, by Napolean Hill. But this time round it’s different, I’m choosing to not just read it, but to commit to the implementation, and to teach this to my eldest son who has a goal to buy a crazy expensive mountain bike. 

If you go to page 17 of Think and Grow Rich you’ll see the beginning of the section titled’

“Six Ways to Turn Desires into Gold”. 

This is where Napolean Hill outlines six “definite, practical steps” to turning a desire for wealth into “its financial equivalent.”

Here is Hill’s 6-step guide, in his words along with an action nudge from me:

STEP #1

“First. Fix in your mind the exact amount of money you desire. It is not sufficient merely to say ‘I want plenty of money.’ Be definite as to the amount.”

YOUR ACTION STEP

What he’s saying here is that the first thing to do is to establish precisely what it is you are after. It might be a mixed use property portfolio that generates £XX thousand net cash flow a month, a donation amount or in my 12 year old’s case – a Scott Spark 970 mountain bike costing £1709.

STEP #2

“Second. Determine exactly what you intend to give in return for the money you desire. There is no such reality as ‘something for nothing.'”

YOUR ACTION STEP

Figure out what it is you are willing to do in order to create that amount of desired value in the marketplace? What problems will you solve or desires will you satisfy using property? You’ll also need to get clear on the effort and commitment you’re prepared to give this endeavour. 

“Thomas Edison dreamed of a lamp that could be operated by electricity,” Hill points out. “And despite more than ten thousand failures, he stood by that dream until he made it a physical reality. Practical dreamers do not quit!”

STEP #3

“Third. Establish a definite date when you intend to possess the money you desire.”

YOUR ACTION STEP

Come up with a finish line date for your wealth and money goals. Be realistic when setting a time frame to attain these goals, but at the same time, think big and don’t be afraid to challenge yourself.

STEP #4

“Fourth. Create a definite plan for carrying out your desire, and begin at once, whether you are ready or not, to put this plan into action,”

YOUR ACTION STEP

When you know where you’re starting from, where you want to go and why that’s important, then to help create your plan you need to figure out what capabilities you need to bridge that gap. You can map out the over arching strategy, what you’ll need to learn, who you’ll need to enlist help from and what action steps you’ll take to get things started.

This step is all about uncomfortable and imperfect action that results in incremental progress.

STEP #5

“Fifth. Write out a clear, concise statement of the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it.” 

YOUR ACTION STEP

Write down your goals and financial plan in your journal. If you’re not a traditional pen-to-paper kind of person, you can type them up and print them out. Even better, do both. Put them in a place where you’ll see and be reminded of them each day. 

Study after study has shown that writing down your goals makes it much more likely that you’ll achieve them.

STEP #6

“Sixth. Read your written statement aloud, twice daily, once just before retiring at night, and once after arising in the morning. As you read – see and feel and believe yourself already in possession of the money.”

YOUR ACTION STEP

Hill explains that, “You have to repeat out loud what it is that you want, and how you plan to get it, so you become obsessed with your purpose.”

I’ve learned from my business psychologist coach to write out the specific evidence procedure of your goals, and to write them in the present tense. Eg. ‘its XYZ date and I’m looking at XYZ dashboard which clearly shows me the asset value of my property business is £X and the net annual profit is £Y. The hairs on the back of my neck stand up as I acknowledge……’ So what will your version of that look like? 

If you’re aiming to follow Hill’s (well Carnegie’s) instructions and repeat your statement twice daily, then you’ll want to create an automatic habit – establish two set times — one in the morning and one at night to tie in with your routine. 

So, with the 6 steps shared, the big question is, will you model what worked for Andrew Carnegie?

It would be a fair assumption to make that the vast majority of people in these property communities want to use property to live life on their terms- to create additional income, maybe be location independent, and most important of all…to create time freedom to engage in the things most important to them. 

The wonderful thing is that all of this is completely possible thanks to the technology we have access to and the specialised property education we can invest in. It’s possible for property entrepreneurs to create and control multiple property income streams either alongside a day job, as their full time business, or from sunny holiday locations of their choosing (when we can travel that is). Property education combined with internet tools, clever apps and virtual assistants have created this phenomenal opportunity and there’s never been a time like it in history. 

However, the same exciting opportunity that is empowering us to live life on our terms, comes with a massive, often overlooked challenge. Property educated and technology empowered people are facing an accountability crisis. People working towards their personal property goals, and typically doing so on their own, are inadvertently placing themselves in a state of limited accountability. And for those who thrive on in person meet ups, this crisis is sadly being exacerbated by the covid related restrictions.

Whilst property income streams present one of the best opportunities to create freedom from conventional nine-to-five work life, the ironic thing is that the solo pursuit to create that property income lacks the accountability layers you typically get working in the employed world. If you are working for yourself, you only have to be accountable to yourself, and we all know who the easiest person to let down is, don’t we? Ourselves.

I can well remember my early years of property investing- getting started and trying to grow a portfolio with no property network, business partner or mentor, those were lonely years of slow progress. But it just doesn’t have to be that way. 

Those of us choosing the entrepreneurial path to create an income stream from property (or any self endeavour for that matter) are the most vulnerable to feeling ineffective, unfocused and unmotivated. And here’s the big reason why – we often lack the ACCOUNTABILITY that focuses our execution powers on the biggest needle moving activity. 

So how do we combat this human weakness and get the best out of ourselves?

Here’s the key thing you need to know – getting things done and being productive is a social phenomenon. Human beings are social primates and the way we have evolved proves that we work better when accountable to another human. 

That’s why when you ‘lift the lid’ on ultra-successful people you find they have surrounded themselves with empowering webs of supporting advisors, investors, staff and accountability coaches. Doing this helps protect them from experiencing overwhelm, procrastination and self sabotage that creeps in when pursuing what might be quite a lonely and isolated business goal.

With true accountability in place, these successful people don’t have to fight so hard to push themselves to execute, instead they more easily show up as the best version of themselves week after week. 

Scientific research and studies by psychologists have proven that accountability is one of the most powerful tools for improving human behaviour and performance. 

This week, myself and an awesome team of mentors will be delivering 4 days of property masterminding. The brilliant delegates we work with experience the power of accountability month after month by pledging committed actions to their mentors and peers. The results and fulfillment that brings to the individuals executing on their specific actions are awesome to see. 

Leveraging accountability effectively will be your competitive advantage and your psychological advantage. And it’s more important now than ever. In a world of chaos, challenge and uncertainty, we all want more certainty, and the place to start is the certainty in ourselves to show up and work on the right things when we say we will. 

Whether it’s with a business partner, a property peer, a mentor or a spouse, be sure to harness this powerful advantage to massively accelerate your productivity in property. 

What can you be doing to stack multiple layers of accountability on your property goals this month?

P.S. if you’re interested to read further about accountability, here are a couple of other posts I’ve written on the subject

Accountability In Property Is All Or Nothing

Do you want to know one of the biggest reasons why many people don’t hit their goals?

The answer is neatly captured in this quote:

“We are kept from our goal not by obstacles but by a clear path to lesser goals” – Robert Brault

I only heard this quote back in September but I love it and refer to it regularly, both to remind myself and to share with others who care about their progress. Just this week I chose to share and unpack it a little with our Thursday Power Hour Mastermind group where the message behind it was well received. 

To explain the quote a little, too often we are trying to accomplish too many things and not focusing on the one key thing, and getting it done. This might be because the one key thing feels difficult or a little scary, and there are ‘lesser’ goals we can work on that feel easier and make us feel busy – things like opening/responding/deleting emails, tidying our desk, reading the news, possibly some browsing on rightmove…..

You know what I’m shining a light on – there are multiple things that a property entrepreneur can busy their time with but that don’t actually move the needle in relation to your big property goal. 

Most people’s activity is based on what’s urgent or most pleasurable in the moment and therefore that activity is producing a combination of urgent outcomes or very short term satisfaction. This is at the cost of creating one’s future vision. 

For all those who have read Brian Tracey’s brilliant book “Eat That Frog”, you’ll know that the core message is to start your day with the biggest, most important, and most dreaded task. If you’re serious about your property goals this is a philosophy you will want to adopt – doing the right thing first, and consistently getting it done. 

Typically, both the task itself and the act of doing difficult tasks first thing in the day,  will be outside most people’s comfort zone and hence will be met with resistance. That’s why people opt for the ‘lesser goals’. 

If you want to become highly effective you need to get better at identifying your property related ‘frog’ and doing that 1 thing in an uninterrupted flow state for 60-90 minutes each morning.

Whether it’s sourcing and analysis based work, phone calls to surveyors or potential end users, or creative work like creating marketing content, you will know the kind of tasks relevant to your property business. The ones that really pay off when completed, and done consistently. Why not make a note to self right now of what those ‘frog’ activities are.

I’ve been following the work of psychologist Dr Benjamin Hardy of late and he explains that as you get better at showing up and completing the ‘frog’ work, it builds your identity capital by having this track record of work behind you, and that gives you self confidence and momentum. In other words, you’re building the identity of- ‘I’m the kind of person who identifies the right thing to work on, and diligently works on it first thing to a satisfactory completion point’.

Hardy also explains that when you first start practising this (ie focusing on the ‘frog’ first) it can feel like urgent things are piling up on you. However what helps is changing your perspective to recognise that when you focus on the frog you’re creating a better life for yourself and controlling your schedule. Your whole life becomes better because you’re emphasising the important and eliminating the urgent and ‘lesser’ things. 

Challenge yourself to eat that frog- identity the thing that will most help you accomplish your headline property goal and take some time to schedule it and set the task up the night before. If you like the result it produces, then do it again the next day.

Here are 3 frog eating questions to help you get started:

#1 What are my highest value activities?

#2 What can I do that will make a big difference?

#3 What is the most valuable use of my time?

With that said, what is the ‘property frog’ you need to eat right now?

[Image credit: 123rf.com]