The answer is an investor mindset. The good news is that an investor mindset can be developed by self-learning and through following the lessons of successful investors.

More than a million Australians own investment property. While this may sound like a lot, it is only about 10% of the potential. Given the proven performance of investment property as a strategy to build real wealth, we should ask the question, “Why don’t more people invest in it?”

A key reason is that you need to develop an investor mindset first. An investor mindset involves setting clear financial goals for the future, working out strategies of how to get there, and then following the strategies with a disciplined and focused approach.

Successful investors also have the ability to overcome the fear of making the kind of decisions that hold other people back. They develop a game plan and stick to it, and as time passes, and as their investments pay off, they gain in confidence, review their goals upwards, and do it all again.

The opposite of an investor mindset is a ‘consumer’ mindset. Such ‘consumers’ borrow money they haven’t got, to buy things they don’t really need, and end up with a lot of debt, and live from pay cheque to pay cheque, trying to make ends meet. Through spending more than they earn, they don’t achieve financial security. Instead, their lives are spent playing ‘catch up’ and balancing their ongoing consumption, and the need to pay off the resulting debts and interest fees.

The banks delight in this, of course, and credit cards have become their weapon of choice in making sure consumers keep spending, as the banks earn huge interest charges as a result.

Successful investors are also prepared to make their moves in difficult economic times. The reason for this is that tough times means great opportunities to acquire assets at far better prices than in boom times. This is a classic example of the investor mindset at work.

The good news is that it is possible to develop an investor mindset and to change of the way we think about money and what we do with it. We can help you achieve this.

If you would like to learn more and discuss how McCarthy Group can assist you, click here.