For the past couple of months, I have been grappling with a couple of financial decisions.
The last six to nine months has been a challenging time for everyone, particularly homeowners and investors. My household isn’t immune.
Change is challenging, and nine consecutive interest rate increases in nine months represents a lot of change in a short period of time. Not to mention the cost of most things is more expensive than it was this time last year.
In periods of change such as this, it’s important to be as proactive as possible.
No different to budgeting, we have complete control over how we respond to change. Sometimes it doesn’t feel that way, but just as spending less than we earn is a matter of mindset, so is how we respond to change.
I’ve been looking at the structure of my loans, my interest rates, my rents, and also my options to keep growing my investment portfolio.
(When I say “I”, what I really mean is “we” because my business partner (my wife) and I have to be on the same page, too).
As I’ve written in my recent blogs, we are seeing the biggest under supply of housing in Australian history. There will be another surge in real estate prices once interest rates stabilise and settle back to ‘normal’ (4 per cent to 5 per cent per annum).
I want to position myself to navigate this period of high interest rates, but also be in the best position possible to prosper on the other side.
Whenever I am grappling with a big decision or trying to decide between two or three different options, I consult my mentor Uncle John.
So last week we sat down over a bite to eat, and I took John through my position and the decisions that I’m grappling with.
On my options when it came to loan structure, he simply asked “have you thought about ___?”.
On my options when it came to growing my portfolio, he prodded “why wouldn’t you do ___ instead?”.
That’s the value of a mentor; they’re a sounding board who sees things differently to you, have different (and often more) experiences than you, and can often save you a lot of time (and money). A valuable mentor will be able to help you see a bigger picture and opportunity than you might be seeing yourself.
Anyone trying to achieve their goals without the help of a mentor is missing out on their full potential.
Anyone who isn’t consulting their mentor right now in a period of rapid change is potentially missing out on an opportunity.
A mentor can be a friend, relative or a professional, it doesn’t really matter.
But we all need someone to mentor us and be a sounding board, and push us to keep moving forward.
If you don’t have a mentor, find someone who is successful and ask them to mentor you. Catch up with them for coffee or a sandwich every now and then and ask them to help you better understand how to be successful with money.
It is important they are financially successful and have values and beliefs to which you aspire.
Now is the time to reach out to your mentor and have a chat if you haven’t already.
