I Have a Dream

I have a dream .  .  .  A dream to see hunger turned into happiness, families growing up together and communities building together and the value of human life becoming worth more than a pound or a dollar!

Our first world communities have given their life control away, given up on themselves and many third world countries have given themselves over to greed and corruption and suffering. 

I have a dream .  .  .  A dream to hear children and parents crying become laughter, families pulling together all over the world and communities reaching out further than their own boundaries to help love and encourage the adventure and gift that life is.

Our families have been separated and dispersed all over the world, isolated ourselves and convinced ourselves that it is good to take care of our family by ourselves.

We have taken the value in education and wealth and we have used it as a crutch to uphold a new belief that my neighbour is my competition and my knowledge is my asset.  We have allowed the comfort that it offers to isolate and separate.

I have a dream .  .  . A dream to give hope where there is none, to encourage the desire hope brings, to turn into a burning desire and to bring affirmation and nurture and enable the faith, that the I (you) is capable of making a magnificent positive and real difference.

I have a dream .  .  . A dream to see you find a dream!  To hear you are acting on your dream and to touch and feel the very real difference you are making!

Fight for your dream, fight to bring our families together and fight to build our community and enable us to work together.

It’s by working together that big dreams can be accomplished and people’s lives can be changed! The financial freedom mastermind is committed to initially helping one hundred people achieve financial freedom by 2020. Join us in making a difference for your life to be able and capable of making a big difference for others.

Jonathan Godney

Taking Action, Making Financial Freedom Happen with The Financial Freedom Mastermind
Join our Financial Freedom community here

When To Buy Your First House or Asset?…

Each of us are at a different place in our journey toward achieving financial freedom and depending on “our place” depends on what needs doing “first” to greatly increase the speed at which the journey unfolds.

We have heard over and over that it is assets like property that give us the holy grail of income types called Passive Income.  Then there is the human desire and family pressures to also own our own home.

Kiyosaki talks about “your home is not an asset!” where he explains that if something takes money out of your pocket it is represented as a liability in your accounting books because it is not adding to your bottom line.  This analogy is true for buying your first home to live in AND your first “investment” home because if you invest your “capital” reserve into an asset that gives you a poor\lower return\negative(as in a home you live in) (in comparison to what something else could do) you are doing the same thing as buying something that in your books is actually not moving you forward at an appropriate inertia.

The key is understanding your current wealth “inertia”, and then being able to judge whether something is an improvement on your inertia, based on the effect it has.  To explain this we draw an analogy with a car.  Initially the car is standing still and is not moving toward its (financial goal) destination.  Then you put the car into its first gear and you start moving “forward” by making yourself more effective and enabling yourself to acquire passive income generating assets and also the ability to acquire assets in an efficient way, then you shift into second gear and the cars ability to  increase its speed increases by increasing your capacity to build asset purchasing power and the speed at which the assets can be purchased, then you shift into third gear and your ability to increase speed is again larger and things start getting easier because the “assets” which you are purchasing, require far less effort to maintain and in allot of cases will continue to grow without your input or effort, this is the passive income we all want.

In the above analogy we used the words “ability to move forward faster" when we changed gear.  The key is to have sufficient initial or forward movement (inertia) in the car before changing gear. If however we change gear before we should, then our ability to maintain and increase speed or inertia is compromised and the same principle applies to our financial freedom inertia.

Our financial freedom inertia is the amount of time it takes to acquire our next passive income generating asset.  To break this down further the amount of time it takes to acquire passive income is based on how much cash(or resource) we can accumulate with in a period of time that allows us to purchase the next passive income generating asset.

So back to the buying of your first asset or property.  If your financial freedom “inertia” is compromised due to the purchase of your first\new asset you have at best delayed your forward movement (and this delay can be very significant) and worse reduced your financial freedom inertia.
It is important to have wise advisors who are able to “sequence” your efforts efficiently.  Join us at Taking Action, Making It Happen where we work together as a Master Mind to increase your financial freedom inertia together!

Jonathan Godney

Taking Action, Making it Happen with The Financial Freedom Mastermind
Join our Financial Freedom community here

Question: What is the best place to start for an absolute beginner property investor?

Question:

“I was wondering what is the best place to start for an absolute beginner to start learning about the ins and outs of property investing as a business model, particularly any advice about how to achieve purchase of a property without having to save up your own money for a deposit. Thanks”

Answer:

We hear so much about property investment\acquisitions all the time that we are very much lead into it as the only option for success and it can cost allot (relative to a person’s financial position) of capital to get into. Conversely property investment is an asset and it has a great tendency to give passive income which is one of the best income sources.

To start with, you are introduced to many strategies of which some are: Rent2Rent or Houses of Multiple Occupation or Multi-Lets, Property Sourcing or Packaging, Rundown Auctions, BMV (Below Market Value) or No Money Down, Property Flipping, Assisted Sales, Delayed Completions, Option Agreements, Title splitting or BOGOFs(BuyOneGetOneFree), …

The challenges with property acquisitions and more so in London are the high entry cost barrier and the finding or sourcing of good deals because of the competition in the area.

The not so obvious challenges are the skills associated with “Learning to Earn” (which is a huge barrier to any business) and the personal and financial “conditioning”, “Leadership” and “Team” needed to succeed on an appropriate time line to avoid running out of time. Secondly the other not so obvious challenge is the motive behind why or how a strategy is being promoted by a Guru or Company.  Unfortunately I see time and time again strategies being promoted purely for the purpose of leveraging other peoples time and helping to “spend” a person’s savings.

So in essence each “Property Investor” is challenged with all four areas simultaneously and needs to work out which strategy is best for them based on their financial position, their skills and ability and lastly and hopefully taking into account their “realised” personal and financial “conditioning” and testing the strategy provider and their motive.

One of the major confusions I come across all the time is the needed deeper understanding of the difference between what is investing and what is a business because the understanding between the two hugely helps a person decide on how much they should commit to or how much they should put on their plate in any one time period. 

Let’s start with a business; we all know what a business is but there is a huge difference between a business “IN” which we work and “ON” which we work.  This difference is revealed if the owner were to go on holiday for three to six months and when he has returned the business has either stalled, lost money or failed OR the business has grown.  I call this process the promotion of the business to asset status and this is important because once this has happened the business has then become an asset and is generating Passive Income just like a property.  The key here is the way in which the business has been started and what the business is doing and the intended purpose of the business.

Investing on the other hand is the acquisition of an asset which should for our purposes be producing a good passive income.  The point here is that there is a very big difference between investing and starting a business and starting the business in the best way.

It’s obvious that when implementing your future financial freedom just jumping in or “Just doing It” is not intelligent or just plain stupid when you consider it is your financial future and it would be far wiser if you were to plan your success.  But is it really obvious?  Many people have a huge personal challenge of motivation and taking action and very often the response is to “Just do It” from the individual or others looking to help or motivate.  The better solution and answer to this very real challenge is to implement “Think and Grow Rich” by Napoleon Hill and in doing so you will need to read the book at least three times with a few months of time in between each read.

The solution to working through the complexities and deciding on the best course of action is to have coaches and mentors.  I have purposefully mentioned having more than one of each because no matter who we are talking about, they only know what they know and they too do not know what they don’t know.  There is a real and definite degree of experience, and knowledge difference between these professionals.  This difference is what I would call moving up into a new league.  If you don’t have a mentor, get one, they are far cheaper than going down the wrong road (or right road at the wrong time) and they will save you a large amount of time which is the one resource we are not able to get back.

Quite often we hear about “No Money Down” property investment strategies, and these strategies rely on the concept of finding a “Below Market Value” opportunity or deal.  Many people say that doing this is impossible but there are clever ways of achieving this and to find out the complexities (because none of the methods I have been introduced to are simple) you would need to promote yourself into a network which supports you with a “higher league” of broker and lawyer.  Alternatively start building your Crowdfunding “Crowd”, I mention the term crowd because you need to build up a following of investors who trust your investments.  Or what you can do is to attract a Joint venture partner.  The last and best suggestion I have is to form an Investors Mastermind, I would call this a Joint Venture partnership on steroids which we can help with!

I wish you wonderful and fast success!

Jonathan Godney

Taking Action, Making it Happen with The Financial Freedom Mastermind
Join our Financial Freedom community here

How do I become financially free with certainty and in the fastest way possible?

 Open up a separate bank account and call it your “Financial Freedom Account” and start saving 10% of your income into the account every month now.  The rule with this account is that you will “never spend the money!” it is only invested and only invested in “assets” that can’t be lost and that give a monthly passive income.

Attend a group meeting at least once a month which is focused on moving you to your next step on your journey.  This group should have a “Burning Desire” and should have “Absolute Faith” that they will become wealthy and this will allow and enable you to do the same.

Find someone experienced in becoming wealthy (who is wealthy) to help you to allocate a small sum of money to a second account to help implement your Money Machine to create an extra income within weeks (sometimes days) of starting, to start feeding your financial freedom cycle.  The rule with this first account is that you will only have access to spend this money on your Money Machine when you have completed your business revenue model and Money Machine plan.

This same person also needs to help you put a money management plan in place that enables your “Money Machine or ATM” to overtake any existing debts and replace your day job and subsidise your Financial Freedom Account to catapult the acquisition of assets forward by shortening the time between the purchasing of assets to generate the best kind of income, passive income.

The above four points are practical and gives you a map to achieve financial independence and then freedom.  It also deals with the most common thing that slows you down, the time it takes to purchase assets, and implements our FIRST “Catapult Effect” directed at shortening the time line to achieving your first financial goal.  Time is the only thing we can’t get back and time is the most valuable resource we want to have in freedom so let’s put the correct emphasis on time and achieve our financial goal in the shortest reasonable time period!

Jonathan Godney

Taking Action, Making it Happen with The Financial Freedom Mastermind
Join our Financial Freedom community here

Comments on: How to Create Your Household (Forecast) Budget

Thank you for your article:   How to Create Your Household Budget

Article Comments:

The term forecast rather than budget far better describes a monthly income expense plan and puts the power in the planners hands rather than a budget that attempts to limit with rules and structure.

I would suggest a focus of working on or with your debt in addition to building wealth rather than just a focus on eliminating it.

It's far better to implement a money management system which looks after our basic needs and the existing debt, and understanding and changing the financial behavior which has not taken you to where you desire to be. There is no point in repairing debt if the behavior that caused it is not dealt with. After the behavior repair, there is also the learning of what needs to be done to handle future long term needs and desires.

In addition to dealing with the necessities of life and the long term saving for spending there also needs to be something which handles our personal month to month wants. This quite often is hidden with the necessity expenses. By liberating these expenses, adding a bit extra, and putting some privacy rules in place we are given a small element of independence to blossom with and can also avoid the terrible financial sabotage that happens when a big ticket item is purchased on credit or with valuable savings with the excuse of "we deserve it" or "its an investment". Over spending is due to our over valuation of current selves over our future selves and lack of basic financial knowledge. The discussing of your budget each month is the essence of what turns a budget into a monthly forecast that takes into account all and allows for the planning of your finances.

Lastly there is the element of building wealth for security, a lifestyle change or for future very large expenses like children's education, paying off your home or retirement. The essence of which is putting savings into the right assets and catapulting your passive income growth by building an ATM or money machine which hugely shortens the time line.

To our health, living more of our purpose and in love.

Jonathan

If you are working toward quitting your job "Taking Action, Making It Happen"is here to quickly help you achive your goal.