Step 7 Measure Monthly
I’m a great believer that we tend to over-estimate what we can achieve in one year and massively under estimate what we can achieve in five years. That’s another way of saying that real success tends to come to those who persist.
➢ Put the strategies in this series into action today.
➢ Follow them for a year and you’ll see some real progress.
➢ Follow them for five years and you’ll experience transformation.
What will keep you going through all the daily ups and downs for year after year? Clear, unambiguous evidence that you are making progress. And for that, you need to measure. You could do it daily, weekly, monthly, quarterly or yearly. Even doing so on an annual basis will put you ahead of ninety five per cent of the population. I suggest monthly. It’s long enough to see some difference in the numbers. Short enough to take some corrective action if you’re falling behind. Once you’re into a routine, it should take no more than an hour a month.
There are two things you are going to measure:
• A snapshot of your net worth at this moment in time
• An estimate of your passive income for the 12 months from today
All you need is an Excel spreadsheet. On the left you list all your assets including property, savings, businesses (use 3 times annual net profit as a rough but consistent valuation metric), stocks and shares, ISAs, pension funds and the like. On the right you list your liabilities such as mortgages, loans, leases, credit card debt and so on. Subtract the liabilities from the assets and hopefully you have a positive number!
Obviously the goal is for your net worth to be a higher (positive) number each time you measure it. It won’t always happen, especially if you’ve had funds in the stock market in recent months. But, when you set your sub-conscious mind the target of seeing a higher figure each month, you’ll be amazed how hard it works at achieving that goal for you. On a separate tab of the spreadsheet create your Passive Income Planner. Across the top, set out a rolling calendar from the month you start. Down the side, list the assets you own that throw off passive income. Rental properties, whether residential or commercial such as the care home suites we offer. Dividends on shares. Interest on savings accounts. Returns on bonds and loan notes as they fall due. Regular income from customers through membership subscriptions and the like.
When you first start, this spreadsheet may be blank. Imagine how you’ll feel as you start to see tens, then hundreds, then thousands of pounds of passive income falling due in the year ahead. If you remember nothing else from this report, please remember this: PASSIVE INCOME = FINANCIAL INDEPENDENCE
Focus your energy on increasing your passive income as the fastest route to financial independence. The investments you’ll see in the Elite Investor Club portfolio are almost exclusively geared to increasing passive income. Here are just a few examples which are current at the time we’re recording this:
The dementia care home suites offering ten per cent per annum for up to twenty five years with an investment of just over fifty thousand pounds.*
The London burial plots offering a forty per cent capital gain in two years or less for an investment starting at less than ten thousand pounds.*
The American social housing offering forty two per cent in three years.*
The specialised care loan note offering eighteen per cent in eighteen months.*
The list goes on. I hope you’ve enjoyed this seven part mini series. Let me finish with a summary of the seven steps:
First, make a logical and emotional decision to take personal control of your financial future.
Then, make a conscious effort to educate yourself through books, videos, live events and the specialist press
Third, get yourself connected with like minded people and experts who can help you get to where you want to be.
Fourth, start acquiring assets that will throw off passive income and/or capital gains
Fifth, build businesses to kick start your net worth
Sixth, tame the taxman so you hang on to as much of your hard earned wealth as is legally possible
And finally, measure your progress every month and watch the magic start to happen before your very eyes!
Elite Investor Club can support you on each of the seven steps. If you haven’t already joined go to the Join Elite page of the website and put that right now! Thanks for watching and I wish you every success on your own journey to financial independence.
- Please note these investments are no longer available