Is investing worth the risk?
A lot of people ask about risk when it comes to investing. The reality is that there is risk in everything.
And there is also a risk in nothing; as in, in doing nothing. There is a risk in working for 40 or 50 years of your life and still not setting yourself up financially.
When investing in property
Looking at building a portfolio, a lot of people will sit there and say that building a property portfolio is risky. Buying property is risky. And it can be. You’re dealing with hundreds of thousands, or even millions of dollars’ worth of investments, capital and debt. So how do you identify and minimise that risk?
Relevant to all investment classes
Let’s take property out of it for a moment and look at shares. Do you know people that have made millions, or billions, of dollars from share investing? We’ve all heard of them. Do you know people that have gone bankrupt from investing in shares? Yes, we’ve heard of them too.
Do we know people that have made billions from building businesses and big empires? Yes. Do we know people that have had business and gone bankrupt? Yes we’ve heard of them too.
What about cryptocurrency? Yes, people that have made millions and those that have gone bankrupt.
Now if we go back to property, we all know people that have made millions and people that have lost millions of dollars’ worth of property. And we know people that have gone bankrupt and got themselves into massive financial distress, due to property investing.
What sets them apart?
The question to ask on that topic, which is one of the fundamentals, is about the strategy. Did the person that made a billion dollars buy the same thing as someone that lost and went bankrupt? Yes. Did they have something different that worked for them? Yes, that was called a strategy.
You want to make sure that every step you take, you are removing risk. Make sure that you have clarity around where you are heading and make sure you have a strategy to get there.
There are people all over the world making big money and being able to do what they want because they’re taking action. There’s also people losing money and going bankrupt.
Having a strategy in place is crucial. Minimising risk every step of the way is crucial.
Become your own success story
If you need a strategy to help you build your asset base in 2021 and kick arse; to tell your boss where to go and live life on your terms; feel free to reach out to the team here at Binvested.
You can call on 1300 367 925, or email us at firstname.lastname@example.org. We’ve got a team of experts here which is helping investors every day of the week to become that small 0.001 percent of Australians with six investment properties in their portfolio. The year 2020 was an awesome year for people being able to build wealth and we are very excited in 2021 to be able to do the same.