When an average Australian begins a career, they are usually looking at three or four decades of working for somebody else, being paid a salary to advance their boss’s wealth.
Doing so will help them grind out a mortgage just in time to retire with just enough money to scratch out a meagre existence.
But working 9 to 5 for somebody else will never get you rich. If you want to be rich, you don’t want to be working for money, you want your money to be working for you.
This is certainly the view and experience of b Invested founder Nathan Birch. Now, 18 years after buying his first investment properties while 18 years old, he has all his best days ahead of him with a passive income from his 220 plus properties that means he can do what he likes.
Ordinarily, someone at 36 years of age would be facing another 30 years of slogging it out for a boss, but not Nathan.
He has amassed a large portfolio of positively geared properties, but he has also started businesses that meet certain gaps he has spotted in the market and he is working for himself for the love of it.
He’s the perfect example of why you need to think differently from the status quo if you want to get rich. But there are simple factors that the rest of us can follow to help us get to where we want to be too.
Running your own business
You often see tradies living in giant mansions in Australia and if you ever need work done on your house, you can understand why. They may only be at your house for 5 minutes and you could still be paying them more than $100. They can earn big bucks for relatively small jobs. But they only earn big if they work for themselves or run a bigger business. A tradie on a salary working for someone else will earn far less for doing the same work.
Builders, electricians, plumbers, these are all examples of why running your own business is a much better way to get rich than working for someone else.
Multiple income streams
Building wealth requires more than just one salary from income streams. Do you have a side hustle that can earn you cashflow? Do you have investment properties that not only provide a rental income, but also accumulate value against their debt?
The year 2020 was the first time a lot of people realised that it was foolish to rely on one income only to get by. People who worked in hospitality, tourism and retail and would have thought their jobs were as safe as could be in Australia, suddenly found themselves locked down with no work and no money coming in apart from government relief payments.
How nice it would have been for those people to have income from the share economy or a rental property coming in to help them get through the tough times.
Make the most of your time
Some of those people who had been working hard for 10 or 20 years and suddenly lost their job when the pandemic came along may have taken stock and thought, ‘I’d rather use my time to travel, or hang out with my family, or follow a different passion”.
They realised they gave all their time to someone who simply took it, paid them a wage and waved them goodbye as soon as they were no longer useful.
You may live to 80 or 90 years old, or even longer, so you need to build something that allows you to enjoy that time.
You may be halfway towards retiring age now, or just starting out on your work journey. There are strategies you can implement and steps you can take to start moving to where you need to be.
Investment and wealth building are a bit like your health. There is no quick solution. Rather it’s a long game. If you can create a balance of cash flow, growth, equity and capital, you’re on your way to sustaining yourself, regardless of what happens in the world around you.
Reach out to b Invested for more information on how to build a wealth strategy, on 1300 367 925, or at email@example.com.
To watch the full podcast episode on ‘Real Estate Investment Is A Get Rich Slow Game (Part 2)’, Click Here
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