Posted by Simon Misiewicz on 13th August 2014
Would you like to know the attributes of a successful property investor?
Are there areas of your life that you would like to improve?
I see many property investors that are busy trying to make a living for their loved ones. Some of them are having more success and happiness than others.
Why is that?
Some people seem to have all the luck in the world, catch all the breaks whilst others seem to attract bad luck. No matter how hard they try, they do not seem to get what they want.
How can this be?
I believe that there are many facets, attributes and features of a property investor that separate the successful from the unsuccessful. In this series of articles I am going to share with you my own personal experiences and observations.
I am going to share with you in this series of articles the following attributes of a successful property investor:
- Part 1 – Values
- Part 2 – Mind set
- Part 3 – Passion
- Part 4 – Health
- Part 5 – Achievement
- Part 6 – Fun & Reward
- Part 7 – Sense of Security
- Part 8 – The need for love
Part 7 – Sense of Security
I read a book by an author called Abraham Maslow. The book is called “The Hierarchy of Needs”.
Maslow suggested that people needed a Sense of Security. Historically during times of national or personal struggle, we would have needed the reassurance that we would wake up safe from harm. You can still see many countries in national struggle – either through war or economic issues or both. In some cases, the citizens in these countries pray for their very lives, hoping that they will get through another day.
Outside of such trying times, there is an expectation that we will wake up safe from harm and that there will be plenty of food in the fridge and heating will be available to keep us comfortable in our homes with fresh clean running water.
As such, humans have a new Sense of Security. As Maslow states, our requirements and Sense of Security are promoted to more desirable things, which need to be obtained and protected once we have resolved the basics.
I believe that we need a Sense of Security regarding the worry over important things being taken away from us. We need to move away from the sense of loss, which will leave us feeling vulnerable, sometimes isolated and worse off.
I believe that it is the sense of loss that holds us back. If we invest money or our time into a project or a new strategy that is different from the norm then there is a risk that things do not work out. As a result the amount of time or money invested may be lost forever.
There is a saying that you need to “speculate to accumulate”. I do not believe that there are many people that are willing to lose everything to achieve their goals. Most people in fact are unwilling to sacrifice anything for the greater good. Some people are therefore happy to stay with their current position of lifestyle, wealth because the sense of loss has greater meaning than the potential gain. This may also be called “being comfortable” or “accepting mediocrity”.
Now think about the most successful people. Donald Trump is a great example of someone that takes risks. His entire ethos is to create and to make money. Most of the time his strategies pay off and add several million to his bank account. There was a time in his business where he lost everything. In fact he was in the unenviable position of owing the bank millions, a lot more than he had! However, rather than giving up he changed strategies and got all of his money back and more.
I do not think the “how” is as important as why he got all of his money back. I believe that he had a Sense of Security from being confident he had the required knowledge, capability and network to get through the bad times and come out the other side with even greater success than his previous highest achievement.
His Sense of Security was not to retain or protect material things but it was having the Sense of Security in himself and his capabilities. There was no fear that the bad times were going to last forever, more over, as he would say “feedback” presented itself and he needed to take more action rather than less action. “The best form of defence is attack”.
Applying the treatment
I am not saying that you need to risk everything at all. What I am saying is that you can identify the bare essentials that you need to protect and hold secure. Once you have identified these things then you can look at the things that are not important to you, which you are willing to risk for the chance of making a fundamental difference to your way of life.
Let me give you an example. John and Sarah have a large home and two luxury cars. They have two children Jim, aged five and Tara aged seven and both of them are in private school. Both John and Sarah have one great holiday per year and they have help at home to take care of the kids because they both work very long hours. This means that they only get to see their children asleep during the week and they are estranged at the weekends. How would this make you feel?
John and Sarah agree that their lives are not in a good position. They are both having niggling doubts about their relationship with one another and have arguments about many things, many of them are not important.
Something has to give but they look around and feel that they need to work the same amount of hours so they can pay for the private schooling, the lease payments on their cars and their huge mortgage. As Robert Kiyosaki would say, this is “bad debt”.
Let us look at what is really important. Their relationship with one another, their relationship and spending time with their kids, having shelter and transport to get to work and back.
The luxury car is not all that important. Having an eight-bed house is not all that important. Even comparing a private school to being able to spend their time with their kids would pail into insignificance.
All that is important is to have security in their relationship, their health, basic shelter and basic transport. After that the rest can be managed.
So, they could easily sell their main home and downsize, they could have cheaper cars and they could put their children into state school and as such have less outgoings. If they had less outgoings then they may be able to get jobs nearer to home with less stressful hours and see their children each night, long before they go to bed.
The security of having love in their lives is, in this instance more important than a material item. This is why I say, look at the things in your life that are truly important to you and protect them. Start to remove the “excess baggage” which we sometimes think is important but is actually toxic.
Their lives would be a lot more enjoyable if John was to go part time in a new job, which, paid less of course but allowed him to invest time and money into property and he was able to build up more of a passive income. Then he may be able to give up his job altogether and spend even more time with his family.
Identify what is important to you and seek ways to protect these and identify things that are not important to you and remove them to reduce the noise from your life. This should give you the sense of security that you have control over your life. If you are in business you should then be able to have the sense of security that you run the business rather than the business running you.
Having a sense of security and control in your life / business will provide you with even more comfort and confidence.