Phew, I am safely back from a very busy weekend. Now it is back to making my dream of total financial freedom by Dec 2011 come true.
Last Monday I wrote about the best investment for everybody – investing in your own knowledge and skills. I also touched on the subject of people complaining about a lack of money. Whatever you do, it is possible that your income is not big enough to qualify for a suitable bond to buy a decent property. So let’s consider some options.
When I consult and find a case like this, I immediately ask: “What does your father, brother(s), sister(s) do? Would they be interested in property investment? Or do you have trusted friend or co-worker who would be interested?” The stock standard answer is something like this: “I don’t want them to know that I cannot afford it.” That is why there is a quote drifting around: Pride will keep you poor. You would be doing your family a big favour if you get them involved with good property investments. So do it.
Another option is to take a leave from the books of the South African Black people. They have a Stokvel. It means that a group of friends get together each contributing a specific amount of money each period (weekly, monthly) and then each time a different person gets the money. So imagine 10 people each contributing R100 per week. It means every 10 weeks you get R1 000. It is an easy, disciplined way to build capital – it is also how the old Building Societies started. I am coming back to this idea later.
What about starting a property investment company? If 10 people each contribute R500 per month, it means R5 000 per month and R60 000 per year. That is more than enough to start investing in property.
The point is this: more people can do more and bigger things quicker than an individual. Don’t be afraid of asking people to buy into your dream. Just think what you can achieve.
Problems? Naturally there are problems – I am waiting for you to tell me what problems you see. And I am convinced there are readers out there who have solutions to offer. So, let’s get some conversation about this.
Tomorrow we spend more time with Donald Trump.