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Property Investing & Wealth Creation

Basically, rich is measured in dollars, but wealth is measured in time.

According to Buckminster Fuller, wealth is a person’s ability to survive for x number of months financially.

How many months could you survive if you stopped working or lost your job today?

Property Investing & Wealth Creation

You see, this is kind of a scary fact because most people don’t have enough savings and assets to survive for more than a few months.

For example, most people think $1m is rich but if expenses are $100k a month, wealth is only 10 months.

So, how long you can survive without working is how wealthy you are.

This shows the importance of debt management, especially in the current, scary global economy as employment is becoming more unstable every day, and losing jobs means the inability to pay expenses after a short period of time.

And its consequences could be catastrophic because this could put many homeowners and investors in a position where they are forced to sell their properties because they can’t afford to pay their mortgages. As you know, the biggest expense for most households is the mortgage.

So being wealthy is more important than being rich because it allows you to keep your house or investment property for a longer period of time and with less aggravation if something goes wrong, especially when most economists warn us about the property market crashing.

On the other hand, those who are financially free never have to work another day again in their lives because their assets provide enough cash flow income to cover their expenses. And to me, that is the very definition of wealth.

Therefore, you need to think more about wealth creation to firstly create some security and peace of mind for yourself and your family and secondly to become more financially free.

Property investing could be a great vehicle for achieving wealth. However, understanding debt management, return on investment, and the risks involved in each investing scenario together with macro and microeconomic considerations and predictions is critical to the success or failure of a property investor.

It is naive to think your current situation will remain forever. Nothing lasts! So, you need to have a plan B (and C & D!) to minimize your property investment risk by having a more resilient strategy and adapting your strategy as the economy or your situation changes.

And the only way to reach that point is by investing in yourself and your knowledge. The greatest investment with the highest return is investing in your knowledge and skills to become a more sophisticated property investor.

For a start, you can follow my social media as I share tips and strategies on wealth creation and debt management regularly. You can find the links to my social media channels if you scroll up and check the right side of this page.

Good luck on your wealth creation journey.

Amir Sehat

Disclaimer: Information given in this article/website is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their professional advice that takes into account their own personal circumstances before making any financial decisions.

About the author

Amir Sehat is the chief property adviser and buyer advocate at Property Demand, known for his data-driven approach to researching 15,000 suburbs across Australia to identify booming suburbs as investment destinations.

A fun fact about him is that his deep knowledge and enthusiasm have earned him the nickname 'Property Nerd'.

He provides expert advisory and advocacy services to a wide array of clients, including:

- Property investors seeking to purchase high-growth and high-cashflow properties.
- Home buyers looking to avoid costly mistakes and save time
- Property sellers aiming to achieve the highest selling price


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