Decide where you are going

Identify exactly what you want then work towards getting what you want

“If you don’t know where you are going, every road will get you nowhere.” (Henry A. Kissinger)

Until late 2018, I wasn’t very clear on what I wanted. I knew I wanted to improve my financial situation but I had no direction. I was pissed off at working away from home and was frustrated at my poor money management. The last few years my earnings had dropped but our spending as a family hadn’t.

If this continued I knew I would end up in debt and the cycle of working away and being pissed off would continue into my 40s, 50s and 60s.

So after a few frustrating years, were my personal progress was slow to zero, I decided to do something about it. In November 2018, I sat down and put my goals down on paper so I knew exactly what I wanted. I just needed to know how to get there.

Financial literacy. Money management. Passive income. This was my mantra at the end of 2018 and I was determined to make it happen.

At this point my financial literacy was very poor. To sort this out I decided to read at least a book a week on anything to do with finances until I sorted my shit out.

My money management was also very poor. I would be looking at my personal finances with a magnifying glass. It might be a boring process but I needed to do it. I needed to get all of our money down on an easy to use spreadsheet so I knew exactly what our income and expenses where. I needed to start heading in the right direction.

Guess what my passive income was very poor also. I had 3 houses that I rented out that were making me around £350 per calendar month in profit. This was ok I suppose but what if I lost my job? What was my plan B?

In my early 20s I had the 3 rentals but here I am in my mid-thirties with the same 3 rentals. The financial/property crisis of 2007/2008. Lack of deposit money. When I had deposit money we bought our current house. Then I put all my savings into Premium bonds and didn’t even achieve 0.5% interest. The budget of 2015 and the changes to the property tax was my next excuse.

To sort out my poor passive income, I would get back into buying rentals. I would also start to think about investing. Investing would come later after first improving my financial literacy.

Although I was frustrated at the fact that I didn’t keep going with properties, it was pointless crying over spilt milk. In late 2018 I bought rental number 4. This purchase is something I will go over later as I discuss the process and whether or not I had any issues after so long without buying a rental.

Along with my mantra (Financial literacy, money management, passive income), I was going into 2019 with a spring in my step.

Decide what you want and get it down on paper. Write your goals down. The next step is to come up with your strategy. Do not do what I done with my rentals. Do not let excuses hinder your progress. Keep going and find a way.

Leave a Reply