Confucius says… “Property investor looking to create wealth from real estate can learn much from ancient Chinese proverbs.”
Okay, so I’m not quoting Confucius
verbatim, however the teachings of the ancient Chinese philosophers still ring
true in today’s very different, modern world and have clear application when it
comes to the business of real estate investment.
Those property investors who
understand the importance that mindset plays in their wealth creation journey
should gain some insights from the following Chinese proverbs – a handful of my
favorites…
“Sow a thought, reap an action; sow
an action, reap a habit; sow a habit, reap a character; sow a character, reap a
destiny.”
I have found that your level of
wealth will seldom exceed your own personal development. Smart.
That’s because your way of thinking
regarding money, wealth and prosperity will determine the financial heights you
reach.
You see… your thoughts lead to your
feelings; your feelings lead to your actions and your actions lead to your
results.
Your inner world (your thoughts and
feelings will determine your outer world (your results and destiny.)
So first work on yourself, because
your wealth won’t grow unless you do.
And if per chance you do happen to
stumble upon a financial windfall and your wealth takes a lucky jump, unless
you grow out to where it is, it will go back to where you are because it is
very likely you’ll lose your money through mistakes or mismanagement.
“He who asks is a fool for five
minutes, but he who does not ask remains a fool forever.”
One of the big mistakes beginning
investors make is to think they can do everything themselves. They do a bit of
research, crunch some numbers and suddenly they’re industry experts.
And of course you can’t tell them
anything because they know it all.
As I frequently say: if you’re the
smartest person in the room, you’re in the wrong room, so recognize the areas
where you need help and don’t be afraid to seek out expert advice.
There are no foolish questions, just
foolish people who were reluctant to ask.
One more thing: don’t be put off
because a learning opportunity costs money.
We all pay learning fees – either to
someone who helps us or to the market because of our mistakes (which are
usually very expensive.)
“A single conversation with a wise
man is better than ten years of study.”
Finding a mentor is the fast track
to acquiring the type of property investment insights that can never be found
in a book.
Seek out mentors who have already
achieved the goals that you aspire to by successfully investing through a
number of property cycles and just as importantly who’ve managed to retain
their wealth.
“One mouse dropping ruins the whole
pot of porridge.”
One bad asset can be the proverbial
fly in the ointment that hold back your portfolios overall growth. So review
your property portfolio regularly.
If you find a property that, knowing
what you know now, you would not buy again today consider selling the, err,
“mouse dropping” in order to make room for a better addition to your “pot of
(property) porridge.”
“A single spark can start a fire
that burns your entire house down.”
Every year unforeseen X Factors come
out of the blue to test us, so look forward to the best of times, but prepare
yourself for the worst.
Protect yourself and your portfolio
against unforeseen crises – be it a personal one, like losing income due to
ailing health, or something on a larger scale.
Insure yourself as well as your
assets and maintain a financial buffer you can dip into, should the need arise.
“Don’t be afraid of growing slowly;
be afraid only of standing still.”
Sustainable wealth creation through
property investment is not a process you can rush. It takes time for
compounding and leverage to work its magic.
Warren Buffet put it a different
way: “Wealth is the transfer of money from the impatient to the patient.”
“The Best Time To Plant A Tree Was
20 Years Ago. The Second Best Time Is Now.”
It’s never too late to get into the
property game. Sure it would have been nice to do it when the median price of a
house was $100,000, but interestingly that seemed expensive to most investors
twenty years ago.
There are always opportunities in the
property market. The sooner you start, the sooner you are on track to reaping
long-term riches.
“Man who stands on hill with mouth
open will wait long time for roast duck to drop in.”
Some people think that announcing
their plans to become a rich real estate tycoon to friends and family over the
dinner table will somehow make the magic just happen.
In property, opportunities rarely
come knocking or fall in your lap. You have to seek them out and be prepared to
create your own.
The big difference between
successful investors and the average person is that they set themselves goals
and then take decisive action to achieve them.
“A fall into a ditch makes you
wiser.”
Fact is: you’re going to make
mistakes when you invest. We all do. However it’s not how often you fall in the
ditch that matters, it’s how often you get up, dust yourself off and try again
that matters.
Hopefully you will minimize your
mistakes by learning from these wise Chinese sayings.
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