This week’s blog is about the benefits of having a business or multiple business. One of the must read’s when it comes to money and personal development, is Rich Dad Poor Dad, by Robert Kiyosaki. This will help you understand money and personal finances from a concept point of view.

Like how he describes the Employee, Self-employed, Investor and Business quadrant. Basically, my understanding is that if you are on the Employee/Self-employed side of things you will work most of your life and be poor in retirement. At a property seminar a few years back, the host summed it up perfectly: “a job stands for just over broke and means you will work 40 hours per week and  40 years and then retire on 40% of your income.”

This is the way the school system sets us up and is very much industrial age thinking. Back in the day schools were designed to get the mass population ready for work in factories and heavy industry. Things have changed and the digital age is here … we have to move with the times despite an outdated schooling system …. Anyway, off my soap box…

At DUFFMONEY we have been focusing on investing for the last 2-3 years. The intention is to get some very early FI (Financial Independence). Over the last few months, I have realised the importance of business in getting that early FI.

Disclaimer: this is not advice. This is information only.

The old plan

My investing strategy is long-term buy and hold with property, index investing and crypto assets. My intention is to get enough properties so that the income replaces my job income and then I can be a full-time property investor.

My current portfolio is 7 single lets’. Let us say that each property brings in a very conservative £200 pcm in positive cashflow. That is £1400 pcm profit and this factors everything else in like maintenance costs, mortgage and even a significant increase in interest rates.

My target is £4000 pcm cashflow from properties or £48,000 pa. To hit this target, I need another 13 single lets – a total of 20 single lets. The issue now is that I have ran out of money. I could cash in some index funds or crypto, but I am not willing to do that because I understand the importance of diversification.

If I keep going the way I’m going, I’ll hit my target of 20 single let’s in about 10 years. Not good enough as I am looking for FI in the next 2-3 years. How am I going to do it?

The new plan

The way I see it, I have 2 legit options to increase cashflow in a shorter time frame than 10 years. Like the 2-3 years I am aiming for.

Option 1 – is to get creative and do things differently property wise. There are loads of things you can do in property. I just need to do something different to single lets to increase cashflow. Like HMO’s or serviced accommodation for example. Or securing a block of apartments with a PLO. My issue is that the market has gone a bit crazy.

But I am always looking for opportunities. And I have started networking with The Property Thing at Darlington. Getting around other investors who are smashing it will up my game and help me to realise that anything is possible in property.

Option 2 – is to get into business. What if I can start a business or buy an existing business and achieve £3k pcm profit. This £3k added to my current £1.4k would mean I will have smashed through my FI target of £4k pcm.

This is my preferred option as I understand the benefits of business. Especially if I get to a point where I get it systemised so that I can completely step away from the business.

The main benefit of networking with The Property Thing at Darlington, is to get around like-minded investors. A bonus is that they have excellent guest speakers. John Paul is a property investor and business owner in the North East that done and excellent presentation the other week.

He was talking about the benefits of business and being able to step away if it is set-up correctly and systemized. This has many benefits like being able to sell if further down the line that is your exit strategy. It also helps you if you become ill or worst case if you die. If the business runs itself, it makes things much easier for your dependents and then it is about legacy.

What business I am not sure yet, but it is on my radar. A bonus with a business is that I can re-invest the profits for the first few years and add to my property portfolio.

What to do

1st of all, read Rich Dad Poor Dad, by Robert Kiyosaki.

Personally, I fully understand the benefits of business. You have other people working for you and making money for you. Creating and running a business you are creating work and jobs for other people so a big bonus in my eyes is that you are making a positive contribution to society.

Maybe start a side hustle. Start small and with a bit of momentum, your business will grow if you put the hard work and dedication in.

Be open minded and look at people around you who are successful in business. They might be a director of a recruitment agency for example. Their business is set-up with a strong manager and strong team. The team is looked after with financial incentives and career progression. The manager might be given a percentage of the business, and this means they have skin in the game.

That person or people who have this recruitment company will have time. They will have time to live life on their terms. Like regular holidays and doing more of what they love. For me it would be spending time with my wife and kids. Taking them on regular holidays in the UK and abroad and really enjoying life. A biggy for me would be the ability to train more BJJ (Brasilian Jiu Jit Su).

This is just some information on the way I look at business and investing. If you have found value in the content, comment on this weeks blog or get in touch via social media. Understanding money is a big deal and as I learn more and more about it, the intention is to pass that info on via duffmoney.

If you want to get into crypto you can buy at an exchange like coinbase – free crypto … if you join via this link you get £7.45 free in crypto and so will I … then you get to do the same so everyone you introduce to coinbase you get free crypto they get free crypto – a win win!!

Book of the week: Breathe, A life in flow, by Rickson Gracie. Totally off topic but anything relating to the beautiful martial art of Brazilian Jiu Jitsu and I’m all over it like a rash. This book will let you in on the history of BJJ and the family that started it all – the Gracie family. It’s a really good story and will help you from a mindset point of view. It demonstrates the importance of the breath and might just get you into BJJ.

For a hard copy visit the excellent Imagined Things Bookshop: Imagined Things.

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