Are you stressed about finances? If you’re not, then you’re a rare bird.
In this modern world we’ve got access to 24/7 news. Want to know what your favourite stock is sitting at? What about world news? Is China really in a slump? What about the Americans? What kind of impact – if any – will the new administration have on our economy?
You can find out just about anything you want at any time. Just grab your phone, use your favourite app, and within seconds you’re inundated with the latest coverage on any topic you could want.
With negative reports bombarding you left and right – many of which have no relation at all to your personal financial situation – it can be easy to lose sight of what you set out to do from the start; create financial freedom through investing in property.
So what can you do if you’re feeling stressed by your finances?
In addition to the traditional wisdom of eating right and exercising regularly, increase your knowledge and revisit – or establish – specific, actionable goals for growing your investment property portfolio.
Because fear is the result of a lack of knowledge. You defeat that fear by taking action.
Action that leads to more financial independence.
If you’ve had thoughts like,
“What will happen to my property portfolio if the market crashes?”
“How can I afford to keep paying the mortgage if I can’t keep tenants in the property?
Address these fears with an actionable plan and you’ll reduce the financial stress in your life.
It’s that simple…and that complicated.
Ways to reduce your stress
1. Track your spending and saving
Keep a written record of how and where you spend your money. This can help you spot inconsistencies between what you think you’re spending and what’s really leaving your back pocket.
When meeting with your financial adviser, your paperwork should include any relevant information on your investments – including your investment property (or properties). This will help him spot any possible inefficiencies he can resolve in a plan to help move you forward.
2. Add to your buffers – both for your emergency spending and for any investment property (ies) you may own
Do you have a personal emergency fund that covers several months of living expenses?
If not, get one. Whether or not you’ll ever need to use it, the mere fact that it’s available is a huge stress reliever.
Does each investment property you own have a sizeable buffer sitting in an offset account, earning interest and offsetting the mortgage interest?
And if they do, are the funds large enough?
If you don’t have an offset account for your investment properties or you don’t have enough money set aside to cover expenses, speak with your adviser to find out your options.
When your investment property (or properties) begin to pay for themselves, your stress levels will definitely be reduced.
3. Talk about your fears
Sometimes it helps to discuss your fears with people who can offer impartial advice, such as a financial adviser.
Often, a third party will spot good opportunities to improve your financial situation, such as adding to your emergency fund or even buying (or selling) an investment property.
4. Remind yourself how far you’ve come
If you’ve been investing in property for a while, you’ve experienced fluctuations in the market so you know – at least intellectually – that property markets have cycles.
But when you’re wrapped up in the here and now you often forget the slow times that are inevitably part of every property investor’s life.
Every bump in the road becomes a sinkhole that we’re afraid we’ll never escape when we lose track of our goals.
5. Change your environment
If you have to, go on an “information fast” where you only consume information from positive minded individuals who have walked the road you’re on now.
But whatever you do, never give up. Financial freedom is definitely worth the effort
You can meet with our Coaches for more tips related to investment property.
Click here to register for our next FREE Property Investor Night to find out how you can safely achieve financial independence through property investing.