Hi there...

Do you have aspirations of creating wealth and achieving the ultimate goal of financial freedom by the age of 45?

Well, there’s no better barometer of your future financial success than the manner in which you manage your home loan.

Take this quiz to find out where on the financial barometer you lie...

Don’t despair: even if you are doing everything wrong at present, you’re still on track, because the majority of self-made millionaires get it wrong two or three times before they finally get it right! And I’ll show you how to do this at the end of the test.

What your score means…

1 – 15: You’re off target at present.
16 – 19: You need to refocus slightly
20– 23: You’re a potential wealth creator!
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“How this simple trick could get you a new home for a 25%, 50% or even 70% discount...”

Did you know there are houses in South Africa selling for less than half their true market value? Most estate agents don’t want you to know about this. But this strategy will help you buy first-class repossessed properties for a fraction of their normal cost... And thanks to the current state of the property market, more houses are expected to be repossessed in the coming months!

So many in fact, that the banks will practically be giving them away! Click here to discover more about how you can buy property for up to 75% less
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The door to financial freedom is opened by passion and desire!

Creating wealth has little to do with money: it has everything to do with prioritising financial freedom over any other consideration, not allowing for any other outcome, and working consistently and persistently until your goal is achieved. It’s about managing a process and creating a result.

The key steps are:

1. Prioritise wealth creation over any other consideration – in particular, your lifestyle.

2. Set out a clearly written statement of your goal, time frame and strategy of attainment. If you believe in it, are committed to it, are passionate about it and allow for no other outcome, you will achieve it. This is the ‘secret’ of success, says Napoleon Hill in his classic book, Think and Grow Rich.

3. Rate your monthly expenditure/investments in terms of what creates wealth for you and what creates wealth for others. Cut out anything that does not serve your priority, such as the lease on your luxury car, your huge cell phone bill or your cheque account charges. There are always alternatives, both short-term and long-term, when you think laterally.

4. Delay gratification until the timing is appropriate to make a move in line with your financial strategy. Getting a down payment together for paying bond costs and transfer duties upfront is a critical step and more important than the car you drive. The less money you borrow, the less interest you pay. And the sooner your home, an appreciating asset, is paid for. Driving a prestigious car – an expensive and rapidly depreciating asset – consumes money that could work more effectively for you in your growth stage.

5. Ensure you have the lowest costs.*

6. Properly manage the risk.*

7. Establish and maintain liquidity. It is essential you have a Plan B to fall back on. If interest rates rise, you need to have cash reserves or liquid assets to fall back on that will cover your total exposure across car leases, home loan, etc., for at least 12 months.

8. Be conscious of your gearing – your exposure to interest bearing loans – and what it is costing you. The more you prioritise financial freedom over lifestyle, the less you will want to buy on credit and the less money you will give away in interest.

9. Thoroughly research your property investment opportunity to understand the detail and the right moves to make. Consistently manage a specific return on investment (ROI) and growth in net worth against specific annual targets and standards (to beat inflation by a margin in line with your particular risk profile)! This is what most people overlook. They highlight the investments that worked, but overlook the unexpected costs that undermined their targeted overall growth in net asset value.

Source: The Big Fat Blue Book

 
In the name of happiness,

The Insider