I’ve found that to succeed in property, investors must understand the Law of Accumulation, which states that everything great and worthwhile in life comes about as an accumulation of hundreds, if not thousands, of tiny efforts or sacrifices.
This means that everything that you do, or that you fail to do, impacts on the final result you achieve.
It’s an unusual concept to wrap your head around but once you understand it, you can start to fully appreciate how it can impact your accomplishments as a property investor.
I’ve found that success rarely happens overnight nor comes about as the result of one single experience or breakthrough. Instead, lasting, genuine success gathers and accumulates over time.
You have to put in countless seemingly insignificant efforts before you achieve anything worthwhile.
But that’s the power of the Law of Accumulation.
It helps you to appreciate that once set yourself a goal, everything you do either helps or hurts you on your path towards reaching that goal.
This means everything you do either pushes you closer towards your goal, or drags you in the opposite direction.
Let me explain…
The Law of Accumulation means that your financial success will happen with the accumulation of factors that generally fall into three areas:
Let’s face it – knowledge is power. It’s a key factor that gives you leverage to recognise and act upon potentially fruitful opportunities. Your body of real estate knowledge accrues as the result of thousands of small pieces of information you accumulate over time.
It doesn’t happen out of thin air – you have to invest thousands of hours into building your mental library one idea at a time.
As a cumulative result of those years of study and growth you will become an expert that sets you apart from the average investor.
Successful people in any field are invariably more experienced than those who are not successful.
In essence, the more experienced you are in any area, the quicker you can connect the dots the next time you’re making decisions, because you have a greater depth of information to draw from.
The only way to truly acquire experience is to be willing to take risks where there is no guarantee of success.
The greatest enemy of mastery and experience is living within your comfort zone and allowing the anxiety that comes with the thought of trying something new and different to hold you back.
This means that unless you move out of your comfort zone and take chances you will not accumulate the new experiences you’ll need to stretch and grow. I’ve heard it said you learn to succeed only by failing!
In almost every circumstance, large fortunes come about as an accumulation of many smaller amounts of money. They grow like a snowball, starting very small and growing as it rolls forward and accumulates millions of tiny snowflakes to its mass.
This is particularly true for property investors who use the magic of time, leverage and compounding to grow their assets.
You’ve probably heard it said that it takes money to make money, so if you’re just starting your journey the trick is to spend less than you earn, save the difference and then invest it.
As your savings accumulate, you develop a momentum that moves you more rapidly toward your financial goals.
Sure it can be hard to get started on a program of financial accumulation, so begin by saving say 5% of your income. These small amounts will slowly add up and before long, you’ll be able to set aside 8%, then 10% or even more.
When you successfully save money in this way, you set up a force field of energy around that money, which serves to attract even more money into your life.
Isn’t it time you used the power of the Law Of Accumulation to help you develop financial freedom through property investment?
Michael Yardney is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia’s leading experts in wealth creation through property. Subscribe to his daily Property Update blog.