Successful property investing is easier than most people think. The mistakes that prevent most would-be property millionaires from realising their potential are predictable and easy to avoid. In this series of blogs, Den details each of the most common mistakes and how to ensure you don’t make them.
Mistake number 6 – Failing to plan
I have a confession to make. I started investing in property ten years ago and I really had no plan for my investing other than “I have to invest in something”. I didn’t know enough about investing; I didn’t know what properties were going to serve me the best and I certainly didn’t know what my exit strategy was. I wasn’t even clear about precisely why I was investing. Frankly, it’s a miracle I’ve been as successful as I have!
I now realise that I’m not alone – many property investors don’t have clear plans around why they’re investing or what they really hope to achieve. Like me, they leave it in the hands of the gods. Fortunately the property gods are often kind.
But there are ways to increase your likelihood of success and wealth.
What can you do to make sure you’ve planned well?
Work out why you’re interested in investing in the first place. Is your reason about retiring early? Is it about increased wealth? Security? Future overseas travel? Once you know precisely why you’re investing, other decisions become easier; what kind of investments will be best, which properties are right for you, what your exit strategy is and so on. Making other decisions becomes easier when you have confidence in your goal and can ask yourself, “Is this in line with my overall goal?”
So what can we learn?
The lesson here is that too many people fail to plan. If you don’t plan then at best you’re hoping Lady Luck will be kind. At worst, you’re planning to fail.
Almost all successful people are great goal-setters and good planners. They know, and clearly define, what they want and how they’re going to get there. Take a leaf out of their book and give yourself a greater chance of success.
What can we do now?
Spend some time now working on your goal. Be totally honest (even selfish) about it – you don’t have to tell anyone! Make your goal clear; the clearer the better. Write it down, make it visible to you and track your progress. You’ll feel an instant sense of purpose and direction, and you’ll find a greater sense of motivation!
And you’ll be just that step closer to achieving your goal!