Wealth creation is pretty simple really.

I did get a giggle out of your comment regarding justifying my position so thank you for that.

Fair enough in all else.

I assume you make posts about the importance of mindset in the hope that some will read and consider the idea and perhaps grow as a person and their results in life reflect that growth.

I post what I post for the same reason.

I acknowledge we probably both live in a fools' paradise of hope that our musings into the wind might reach the target and make a difference.

 

@PKFFW points well made but you are probably wasting your time.

Interesting this thread has gone the way of so many other threads on PC.

A bit more inner calm required by some perhaps. And that can be obtained by humbleness in outcome despite determination and pride in process.

Not everybody that acknowledges luck and privilege is a failure.

Everybody that posts as superior just because of positive outcomes or because they have money comes across as a ****** to me, but hey that’s my problem. Time to Disengage.

 

May I add, take action, take on calculated risks, and stay strong psychologically despite set back. My personal experience is analysis paralysis and self-blame are the stumbling blocks to move forward.

 

Fair enough, I never claimed anyone must agree with me.

Congratulations to you.

Or, as you say below, it may have been something else entirely. Never did I claim hard work and luck are the only two factors in life.

However, perhaps it was down purely to luck. Maybe all your hard work and dedication didn't pay off in those other businesses because of circumstances outside your control that played a significant part in the outcome? A possibility at least maybe? Or not. You may very well be that unique individual in which all aspects are within your control.

I don't believe I ever said it was "just hard work & luck, or lack thereof".

There are many variables. However, I'd say "working hard" includes doing your research so you know your product is the right one, and you're in the right area, and your market is right, and you seek adequate funding. Can these be totally controlled through your own efforts? No, of course not. Perhaps some other factor might play a part. Wonder what a good word for it might be? One with an accepted meaning that might speak towards happenstance that plays a determining factor in the outcome of events?

 

Need it be an either/or?

Can one not see the world with nuance and shades of many colours?

Or is black and white all there is?

 

If your only point is that there are lazy people in the world who want it all given to them, I will totally agree with you on that point.

That's an entirely different issue to the one being discussed though.

 

Delayed grafitication is the theme of the topic here. Instead of given money, Say if you are going to given a handful of grains for every hour that you work.

The long term thinker will suffer a bit of hunger to save a good portion of it and doing the hardwork to plant the grain seeds and nurture it.

The average Joe will eat most of it and store some for the rainy days.

The rest will eat every bit of it knowing they will get more the next day they work.

I think the majority here in PC are the first type. In order to succeed hardwork and long term vision is needed. Its all possible because you have a strong conviction that your future will be of abundance and freedom.

 

This seemed a simple approach

1.) Live below your means
2.) Invest early and often

 

Is rent generating property considered a productive asset, based on his definition? I know there's often a debate about whether the utility of shelter that housing provides is considered "productive" or not. Maybe it's more of a philosophical question from bitter people who refuse to play the game rather than a dollar one.

 

Many folk struggle with this part.

 

I believe we create our own luck! There's always opportunity luck to those that wish to look for it.

 

This is created luck IMHO!

 

by Jim Rohn. People often ask me how I became successful in that six-year period of time while many of the people I knew did not. The answer is simple: The things I found to be easy to do, they found to be easy not to do. I found it easy to set the goals that could change my life.
So some will find it easy to do while others will find easy not to do! Love this simple explanation!

 

It's a great explanation. It should be remembered it is also a single anecdotal, personal story that gives Jim the feeling he is seeking. There are not enough data points to determine if the explanation is actually true.

And by the way, my point was never about whether it is simple or easy or if some will do the work or some won't or if there are lazy people who want it all handed to them. But I've howled into the wind and said my piece and will leave it there. Maybe someone some day will read and consider it and, perhaps this is mere ego talking, maybe even benefit from it.

 

In the GFC many "wealthy investors" ceased to be wealthy. Literally overnight. They went from asset rich to negative portfolio's. When share prices fall the debt doesnt. The all ords took 9 years to recover that fall.

Rule #1 of investing is dont count your unrealised wealth. Follow it, track it but its not banked until you sell down your portfolio. Shares or property. Pulling equity from several properties to claim you are a wealthy share investor could be a sign of high leveraged risk. With pulling equity from property you are leveraging down unrealised profits to invest in further unrealised assets. Its like a parlay bet on the giddy ups.

I also hear so many people claim to have a property portfolio worth $2m and brag about ambitions to expand that further. But they have debt and their net equity is $400K. I had one tell me they were part owner in 10+ properties and didnt pay any land tax and had no debt They had "brickx" and had very little interest.

 

A portfolio worth however much is only a valuation at best. Even net equity is only based on that valuation. The only true money is cash on hand. Even that will be eroded away with QE. My experience is holding properties during the worst of time (eg., Perth during 2016-2019) and live through it without selling at a loss despite poor rental income and confidence crisis is the most difficult.

 

All good things come to those who can (afford to) wait. This is where cashflow is important. If a property is costing $40 a week in -ve cashflow, who cares ? If its costing $1400 of cashflow a month its painful and affects servicing and more. Its like throwing cash onthe fireplace to keep warm. After 18 months you are down $25K and its possible growth wont match it