Negative Gearing Can Be Like Treading Water

Horses for courses. Much of wealth creation is a very individualistic endeavour. What is a death trap for one can be a stellar opportunity for another.

 

Only time I was geared in any way was when I had a margin loan and even that was positive.

Negative gearing to me means:

• losing money now in the hope of clawing it back at some stage in the future - which is always unpredictable in my view;
• debt

All I care about is my income and that it does increase over time. Concern about asset valuations and all that BBQ talk isn't my gig. Gave up caring about that aspect many years ago and I really try to resist caring. Too much stress when you do follow and see large price fluctuations of up to six figures sometimes in the holdings.

Now when I see or hear about price variations in my preferred investment vehicle (shares) I think along the lines of:

Do I have spare cash?
If so, do I want to throw some money in?
If yes, in to what?

However, it's really difficult not to get carried away with the mob thought so I tend to switch off and ignore it (Mr Emu?).

Don't get me wrong. Every person's brain is wired differently I think when it comes to investing. You do have to follow what suits you, your family circumstances and is legal - as is negative gearing. Just try not to fall in love with money. It don't care about you or even know you exist; much like the atoms of which you consist.

 

You need cashflow if you want to achieve financial freedom

 

Ya forgot....built like brick house...

 

Good lyric

 

Stop knocking mi women mon.

 

I worked it out a long time ago that:

1. One needs cashflow to live.
2. One needs more cashflow if one wants to achieve financial freedom.
3. One needs lots of cashflow if one wants to achieve it in a hurry.

Unfortunately, some people can’t even get to Level 1; others can’t get off Level 1.

So, one can’t have too many negatively geared properties; one just needs to work how to generate cashflow to cover them .

 

Dude get off the 'roids....they are shrinkin'g youse on all the wrong places!