The importance of having a strategy

Hi @specha good question.

Short answer, yes it matters and it helps to have one. There are lots of little decisions along the investing path, which all get easier if you can check in on your direction.

Here is how I think it can work (at least how I am trying to run my own life etc)

1 Start with why – watch this video from Simon Sinek, go find your own reason, your driving force for taking action. https://youtu.be/u4ZoJKF_VuA
2 In line with your why, set some long term goals. Ask yourself if they fit with who you want to be along the journey and at the destination. The goals are more than just “I want to be rich” they are like “I want to own 4m worth of units generating 200k net cash flow” or “I want to be actively developing 8-10 properties per year with 400k net profit” etc etc. Thing about the process of owning and improving property and which parts you warm to as these are the things that will consume your time when you get further along.
3 Once you have the above, then set the short and medium term goals to break it down into baby steps.
4 Once you have all the above, then clearly write down the strategies you will be using to achieve them. It becomes obvious. IE if you like owning new low maintenance units, you will either buy them that way or build them. If you love renovating, you will buy ugly ducklings. Etc.
5 Once you have 1yr goals and strategies written down, develop a 3 month action plan so you actually do something right away. Such as “apply for that equity refinance this month to prepare for my next IP purchase next month”

Continually check in with your deeper feelings about life and purpose as if you find your plans drifting chances are you will find you created something out of alignment with who you actually are. We don’t get energised when we try and do things we don’t believe in.

Hope this makes sense.

I consistently see clients who have formed an investment strategy outperform those who don’t – to the point that we recommend ALL clients sit down and review their plan. Not only does this allow them to make better informed choices when it comes down to making purchases, but also in ensuring their finance structure will suit their plans and eventual goals.

The plan doesn’t have to be a rigid structure, and it can change many times. The key however is to ensure you’re heading in a consistent direction, rather than effectively walking in circles and hoping for the best.

When I first started out I wanted $100k net passive income (paying forever including CPI) before I retire. It’s changed a bit as my investments / work / family situation has changed. But I took that and worked backwards across all investments (and insurances). So far, so good.

Hi @specha (aka Chattaway)

I’d been looking for your thread as I knew you intended to create one, but it isn’t as easy to find threads and comments by a particularly person any more. The link seems to have gone. Nevertheless, yes, I certainly built my portfolio with a strategy and have in mind viable strategies for each of my clients such that I know what role the property I’m purchasing for them will play in the greater plan.