“Someone’s sitting in the shade today because someone planted a tree a long time ago”   Warren Buffett

Income is a flow concept and wealth a stock concept. Income makes possible the accumulation of assets or ‘wealth’.

Investment involves foregoing current consumption or ‘saving’ and redirecting that income to building a passive income in the future.

We have seen at the beginning of this course how important investment is on a global, national and personal level.

Investment expands our capacity and options and provides a more satisfactory answer to the economic problem.

We are fortunate to live in a society that encourages self determination, wealth creation and financial freedom in a number of ways.

The conferring of private property rights, the delivery of tax incentives, and the adherence to the rule of law are just some of the benefits we enjoy that allow us to take control of our own futures.

Of course all investment carries some risk, by definition profit is “the return to risk”, but property investment provides a relatively straightforward and safe way to invest and create a store of wealth for the future.

It also allows you to capitalize on the power of leverage – borrowing to increase the potential return of an investment.

Property investment is a long term strategy and therefore benefits from the “eighth wonder of the world” – compounding!

Investing in a property that is increasing in value, even slowly over time, means that each consecutive year’s growth adds to an increasingly higher base.

A house purchased for $300,000 at 7% growth per annum (on average, remember the variations around the trend line) for 10 years will just about double in value to $600,000.

This is why time in the market is more important than timing and why it is important to start as early as possible.

According to Steven Covey, author of “The 7 Habits of Effective People”, the number one habit is Be Proactive – make decisions to improve your life through the things you can change.

Abundance isn’t finite, there are opportunities for ordinary Australians to create wealth but you need to know about them and be prepared to act on them!

It really comes down to knowledge and attitude. Investment provides the opportunity for financial freedom and self-determination.

Most wealth isn’t inherited, it is CREATED by motivated and informed people who think differently about debt, plan and adopt a wealth creation strategy.

It’s up to YOU!