Managing Your Cash Flow
Having the right cash flow management system in your personal life will encourage and teach the principles of financial discipline and responsibility.
By reducing the debt on your own home first, the same strategies can then be used to reduce debt on your investment portfolio.
Debt reduction equates to equity increasing. This allows you to purchase more investment properties sooner... always an exciting result. So... what did I learn this week?
In retirement you will have three ways of getting money back out of your investments.
1. You have ongoing income, or the net rent the property is paying you.
2. There is the possibility of borrowing against equity.
3. Or you can sell the property and release the equity.
Whilst selling the properties off and living off the capital can be tempting, it isn't a good long term solution. The cost of living increases and the value of money decreases over time. A great property portfolio is what my goal is. To do this I have to keep educating myself along the Think Money principles and keep asking questions most of the time over a nice cup of coffee.
Take a look at some investment properties available over at Think Investment Realty.