Separating Your Finances“A financial platform is a necessary process to ensure the foundations of your portfolio is set up well. Having the right banking system, loan, accounts and credit cards can make a world of difference to how quickly you pay off productive debt. Interestingly not many people realize this simply because we have been used to getting our financial advice mainly from banks. Question – next time you are in front of your bank teller or bank manager just ask them how many investment properties they have?”
You hear stories all the time of people who stop their property portfolio from growing simply because they feel they are robbing Peter to pay Paul. This in fact will be true if you do not have a buffer account set up or as otherwise affectionately known here at Think, “your pot”.
Keeping your personal finances separate to your investment finances can be the making of creating a passive income and equity in your portfolio; as opposed to pulling out and selling up because you perceive it’s getting too hard as you do not have a good financial platform in place, and feel your investments are stopping you from living.
So many times we have had clients come through Think with investment properties they cannot wait to get rid of because they cannot see the value. Once Chris works with them and re-aligns their financial platform, like magic the equity and pot appears. This allows them to separate their personal finances so there is no longer a drain on the household and living expenses.
Creating a great lifestyle is something that we are passionate about at Think Money. In order to do this you have to have your money organized. Do you?
If you’re hesitating with your answer to this question, you probably need to come in and see us.
Lynn Levitt – Think Money Wealth Coach and Goal Mapping Expert.