Money Management Long Term Investing
Paul: Okay guys. Paul Glossop here from Pure Property Investments. Again today is part of our educational series and I’m again joined by Tristan Scifo. Tristan thanks for joining us again. Tristan: Thanks, great to be here again. Paul: Thank you mate and look today again we are talking about the importance of strong money managements and how that can help avoid unnecessary stresses and also make sure that property investors are understanding where the moneys are going to make sure that they are doing the right thing by both their ingoings and outgoings and maximizing their opportunities in the market. So Tristan if you can elaborate that will be fantastic. Tristan: Definitely, money management. Look we talked before about knowing your numbers and how important that is. But systems, systems save you so much time, stress, and so much frustration. If you can have a money management system that works, you really should have zero financial stress. And I say that because that’s how my life has been the last few years since I learned and realized this. So what does that mean, what does that look like with your property investments. There is a few things to it. Number one the key is really your emergency fund and buffers. So that’s a pocket of money that you have sitting there purely for emotional security more than anything else. It’s either you or your misses within the relationship whoever has the higher need of cash, whether it’s $5000, $10,000 or $50,000, as much as you need to know that in case a car accident happens or you need to fly overseas, for whatever reason, you’ve got the cash there. But not just for emergency purposes you need buffers in your transaction account you don’t want it to be going into the negatives. You don’t wanna be using your credit card as an emergency fund. You wanna have enough cash in each of your accounts including the offset account that you might have your rental payments and all your expenses coming out of. And that’s gonna really free you up from any anxiety. And on top of that, you wanna automate all your payments. Make sure that you have clear in’s and clear outs so when I check at my investment statements monthly, all I need to see is on my rental statement that the right amount has come in, and I know that all the automatic payments have already gone out. So I just check it for about 16 seconds, I file it away in the right folder and move on with my life. Paul: Fantastic and a lot of those points I can truly say are dear to my heart and as a seasoned probably investor myself, you’ve got to start somewhere. A,nd I can recall almost 10 years ago when I started my investment property journey a lot of those things I didn’t have in place, and things such as automation and things such as buffers, they are what keeps me investing into a multi-property investment portfolio today, and they are so important. So thank you so much for sharing that knowledge, and I hope you guys enjoyed that.