Real Estate Investor Magazine South Africa March 2015 | Page 20

cover story
Why are you
investing?

People have different reasons for investing: return, growth, assets,
freedom and fun are important reasons, but the most important
reason of all is income. Consistent cash flow, so you never have to
worry about paying your bills, should be your number one reason
for investing. A lack of income is stress. Income is freedom.
Robbins’ 5 core strategies for achieving your financial goals faster
One of Robbins’ 5 recommended ways to get richer faster is by
investing more. He says we can start by doing the following:
1.
2.
3.
4.
5.

Save more and invest the difference
Earn more and invest the difference
Reduce your fees and taxes and invest the difference
Aim for better returns
Change your lifestyle

David Swenson, one of the most successful institutional investors
of our time, says that unconventional success can’t be guided by
conventional wisdom.
7 Simple Steps - Your Checklist for Financial
Freedom
Here is a quick checklist to use anytime to check if
you are on track to achieve financial freedom.
Step 1: Make the most important financial decision
of your life
Make the decision to become an investor. Commit to
a specific percentage of savings to invest and automate
it.
Step 2: Become the insider: know the rules before
you get into the game
Know the investment myths, understand the returns,
be clear on the fees, test your broker for costs,
understand difference between advertised returns and
actual earnings, and establish whether you get the
upside with minimum downside.
Step 3: Make the game winnable
Do you know what the real numbers are, what the
plan is for returns in what period of years, how to
speed up your plan, save more, invest more, earn more,
save taxes and get better returns?
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March 2015 SA Real Estate Investor

Step 4: Make the most important investment
decision of your life
Know your asset allocation. Know the percentage in
your security bucket, the percentage in your growth
bucket, and set short-term and long-term goals that
excite you for your dream bucket.
Step 5: Create a lifetime income plan
Evaluate your current investment returns versus
Ray Dalio’s all seasons approach. Do you have a
guaranteed life income plan? How will you achieve
financial freedom through tax efficient strategies?
Have you set up a living trust so that your family’s
assets are protected?
Step 6: Invest like the .001%
Learn from the 12 smartest