There’s a 60-something, grey-haired bloke who lives in Cott getting around in a gorgeous ice-white Bentley sedan.
It’s just a beautiful, beautiful piece of kit and although I don’t really get off on cars, it makes me stare. Drool a bit, even.
I want one, and could buy one tomorrow without borrowing money.
But the thing is, I can’t afford one yet.
It’s not the $180k or whatever it may cost, and it’s not the eye-watering service bills that are inevitable. It’s not the tyres at a thousand bucks a corner. Or the ‘don’t look at the pump’ fuel consumption.
It’s the opportunity cost that I can’t afford.
And with most discretionary items, nor can you.
I find it peculiar that high earners who’ve earned millions over the years have nothing to show for it. They’re perplexed as to where the hell all that hard-earned has evaporated to. Even the mortgages still linger after years.
It’s not so much mismanagement as it is ignorance of one of the most vital, critically important wealth-rules: Delayed Gratification.
The shit that is piled up on peoples jewellery boxes, garages, sheds, wardrobes, homes, drawers and cupboards comes with an instant opportunity cost. People waste money hand over fist at bars, restaurants, hotels, at sports venues and concerts. Every time you hand over money to someone else that isn’t going towards an investment, your plans to be financially rock-solid are put back just that little bit further.
No one is guilt-free here. There are no angels. There are but a few people, usually rich, that have the sort of discipline required to fully restrain and control spending, let alone manage their credit.
But to get to that place where you’re so sorted you can snooze-cruise, loaf, lounge, party, spend, holiday, whatever you wish without guilt or remorse, you must get the discipline in place to restrict your spending.
It’s called delayed gratification.
Putting off the reward for as long as possible, knowing that the feedback loop will ultimately be satisfied and then…. Guess what? You’ll be straight onto wanting the next shiny new thing.
The more you waste, the less you have to invest in the security of your future.
Start by investing in your mortgage, it’s safe, guaranteed to get a non-taxable return consistently. Then when you’ve done that I can help you understand how to create wealth through property.
Most brokers and definitely banks give bugger-all credit and property advice. I do.
Go here to request a 10-minute phone appointment to find out if you’re the right type of client for us.
Cheers,
Brodie Brown
Professional Mortgage Broker