Chapter 3. How you can develop a Financially Abundant Mentality

Let’s look at some of the popular ways to build wealth..

Real Estate

Real Estate investing can be great, and it us where I got started in developing a Financially Abundant Mentality. However, the challenge with real estate as an investment tool, as I have mentioned, is that it often takes many years to grow substantially in value and typically requires a substantial amount of money to get started.

For the last forty years in America, Australia, Canada, and Europe, the western world has experienced strong property growth mainly due to the strong flow of reasonably priced credit (loans) from banks and also strong demand in the market driven by Baby Boomers.

Please don't get me wrong, I am not trying to criticise real estate as an investment tool. But, my point is that real estate is generally a longer-term investment. The entry costs are also high - to get started in real estate investing you need a sizeable deposit and you often have to pay government taxes, stamp duties and legal costs.

One of the other big challenges with real estate is that your success relies on the price of real estate rising. I have yet to discover how anyone can make money with falling real estate values. Sure you can buy a bargain when the market is depressed, but then you still need the price to go up again to sell it for more to make your profit.

There are no guarantees that real estate is going to perform the same way in the next twenty years as it has in the past. There are a lot of different issues in the world today, which could heavily influence the future values of real estate.

By Daniel Kertcher