Action vs Self delusion | Jim Rohn

Knowledge fueled by emotion equals action.  

Action is the ingredient that ensures results.

Only action can cause reaction.

Further, only positive action can cause positive reaction


The whole world loves to watch those who make things happen, and it rewards them for causing waves of productive enterprise.Jim Rohn_2015

I stress this because today I see many people who are really sold on affirmations.

And yet there is a famous saying that “Faith without action serves no useful purpose.”

How true!

I have nothing against affirmations as a tool to create action.

Repeated to reinforce a disciplined plan, affirmations can help create wonderful results.

But there is also a very thin line between faith and folly.

You see – affirmations without action can be the beginnings of self-delusion. 

And for your well being, there is little worse than self-delusion.

The man who dreams of wealth and yet walks daily toward certain financial disaster and the woman who wishes for happiness and yet thinks thoughts and commits acts that lead her toward certain despair are both victims of the false hope which affirmations without action can manufacture.


Because words soothe and, like a narcotic, they lull us into a state of complacency.


The key is to take a step today.

Whatever the project, start TODAY.motivat

Start clearing out a drawer of your newly organized desk … today.  Start setting your first goal… today.

Start listening to motivational cassettes … today.

Start a sensible weight-reduction plan … today.

Start putting money in your new “investment for fortune” account … today.

Write a long-overdue letter … today.Start calling on one tough customer a day … today.


Even an uninspired person can start reading inspiring books.

Get some momentum going on your new commitment for the good life.

See how many activities you can pile on your new commitment to the better life.

Go all out! 

Break away from the downward pull of gravity.

Start your thrusters going.

Prove to yourself that the waiting is over and the hoping is past — that faith and action have now taken charge.

It’s a new day, a new beginning for your new life.

With discipline you will be amazed at how much progress you’ll be able to make.

What have you got to lose except the guilt and fear of the past?

Now, I offer you this challenge:  See how many things you can start and continue in this — the first day of your new beginning.

from Property UpdateProperty Update

Plan for the Outlier

Many investors dream of buying a share at $0.10 and having it go to $50.   future

Unfortunately most do not consider the reverse – buying something at $50 and having it go to $0.10.

It can happen in the property market too – sure the fall won’t be as big but the values of some properties fall.

Our mind is instantly attracted to the renovation deal that netted a huge profit, or the development that was a hidden gold mine of opportunity.

Yet precisely this situation arose during the meltdown in the global financial system that we are finally emerging from.

This was an outlier.

It’s a sequence of events so extreme that no one had considered it.

The interesting thing about such events is not the size of them but rather that no one had a plan of any note.

I will accept the argument that this was an extreme event, but there were no plans at all within organisations such as banks and fund managers to deal with the collapse in asset values they experienced.

What response they did have was somewhat akin to an ostrich sticking its head in the sand and squawking “I can’t see you”.

The only response that regulatory authorities had was to ban short selling which only made matters worse.

Once this had occurred I was surprised that these geniuses didn’t go all the way and simply ban selling all together!

The interesting thing about investing is that the psychological problems that bedevil investors are universal in that they also affect all individuals involved in complex or stressful decision making.

Using the example of the bushfires, Dr Mary Omedie of Latrobe University has done some interesting work in the area of decision making by fire fighters.

In her simulations she has found that once fire fighters commit resources to a given fire they are very reluctant to remove these resources to deal with a secondary threat.

They are emotionally anchored in their decision and are therefore reluctant to change their strategy.

This is precisely the same issue that investors face when things begin to go wrong with a given trade.

We are emotionally as well as financially invested so we struggle to alter our strategy.

This situation gets worse when events begin to unfold in an entirely unexpected way.

Dr Omedei makes the following salient point when looking at decision making among fire fighters –

“We’re sort of very much thinkers of the present.

We’re hard wired to sort of think things will keep changing the way they’ve been changing up to that point.”

Consider this quote within the context of investing.  Dream-Investment-Property

Investors make the assumption that tomorrow will be the same as today and therefore any planning that is undertaken reflects this very basic perception.

There is no account taken of the fact that not only will tomorrow be different to today but that it may be so different as to be almost unrecognisable.

We perceive that change occurs at a constant rate, or at least has a constant theme, and we plan around this constancy.

Unfortunately the world, and particularly the investing world, is not like that.

Dr Omedei continues – “To put it into more cognitive terms we grossly over estimate our mental capacity.

We over estimate the amount of information we can deal with, we over-estimate the rate at which we can process information”.

In other words we are not as smart as we think we are.

Complex systems that are undergoing rapid variable change overwhelm us.

So the question becomes, if we acknowledge that we suffer from these cognitive drawbacks, what can be done in a investing sense to deal with our shortcomings?

I think the following list goes someway to addressing the situation.

  1. Leave your ego at home – if you begin to imagine that you are the master of the universe then the universe will show you who is actually boss. You are not as clever as you think you are. Property-Investment-Checklist-300x199-300x199
  2. Plan not just for trades that go to the moon but also on trades that come crashing back to earth. Scroll through the All Ordinaries and imagine what you would have done if you had instruments that suddenly lost a large amount in value. Rehearse how that might feel and what steps you would take to survive.
  3. Cultivate the notion of survival as the prime driver of your investing. Remember the market has one very harsh rule – no dough, no play. When all your money is gone, that’s it.

 Find out about Louise Bedford’s Mentor Program Course

from Property UpdateProperty Update

13 Essential Things To Look For When Viewing A House [Infographic]

Looking for a new home is truly an exciting time – it’s also a big investment.  Property-Investment-Checklist-300x199-300x199

But do you know what you should be looking out for during viewings?

Aside form the obvious amenities, there’s several essential elements you should to out for to decide which home is perfect for you.

To ensure you don’t end up with any nasty surprises, it helps to have a bit of a chat sheet.

Here’s 13 essentials thing to look out for:



Metropole Property Home Buyers Enquiry

from Property UpdateProperty Update

The ultimate guide to home and property loans

Doesn’t it seem like there are more home loans on the market now than ever before?

Well, that’s because there are! piggy bank

Let’s face it: first-tier lenders like the Big Four and second-tier banks such as credit unions are locked in a battle for your business.

The hard part, of course, is determining which is the best home loan for you amongst all their marketing noise.

Interest-only, fixed, variable, offset – finding the investment home loan that’s right for you can seem like a minefield of financial jargon and conditions.

Lucky for you, we’ve prepared this handy ultimate guide to help you decide!

Are fixed interest rate loans are a good idea?

Here’s the thing about fixed rate interest rates: they can be a good idea but they can be a bad idea… but it all depends on what your appetite for risk is.

Arranging a mortgage with a fixed interest rate gives you certainty – you’ll know up-front what you need to repay annually. 


So this means that once you know what you are going to receive in rent, you can estimate whether there will be a cash surplus or deficit and manage your cash flow accordingly.

But there are cons: such as many lenders will charge you a break fee if you repay more than the fixed rate allows for or if you wish to refinance during the fixed loan term.

Something else to consider is that banks will set fixed rates based on their expert understanding of where they believe monetary policy will go over the short- to medium-term.

So don’t forget that banks will still likely make a profit from you if you’re on a fixed rate… because they probably know more than you (or I!) do about the economic future.

If you’re intersted in 7 questions you should ask if your considering fixing interest rates read Michael Yardney’s blog here.

In short he suggests you ask:

  1. Will I want to sell my property during the fixed loan period? If so there could be a penalty for breaking your loan commitment.
  2. Will I want to access the equity in my property to invest further during the fixed period? Often this will come at a cost that may be prohibitive.
  3. Do I need an offset account? Many borrowers put their savings into this account and the credit balance here is offset against your outstanding loan balance reducing the interest payable on that loan. Most fixed rate loans do not allow an offset facility.
  4. Can I make extra repayments off my loan?
  5. What balance of fixed and variable rates do I need for my portfolio?
  6. How long should I fix my loan for? Now this is a difficult question, but if you believe that interest rates won’t increase for a year or two and after that they will remain high for a number of years, then fixing for a short period such as one or two years may not make sense.
  7. If interest rates fall further, what will locking in today have cost me?

Are variable interest rate loans more risky?

So, unless you’re keen to take a wager with your bank on the future of interest rates, many investors opt for variable interest rate loans instead. 9337186 - risk insurance

This type of loan means your payments will fluctuate with a variable interest rate mortgage, which some people might see as risky.

If you ask me, it also means that you can potentially benefit from any interest rate reductions such as the very big rate cuts we received during the depths of the GFC.

Another big pay-off is flexibility – if the loan has a redraw option, you’ll be able to redraw funds from any extra payments you may have made.

And many investors do just that to buy more investment grade properties or to use for renovations to manufacture equity.

You can also choose a split loan, with a mix of fixed and variable interest rates.

There’s also a plethora of package home loans on the market these days that feature split rates, along with credit cards, waived fees, and other products.

Interest-only loan

As the name suggests, with interest-only loans, you won’t pay anything off the principal. low interest rates

So, if the value of your property increases, you’ll have that equity even though you’ve paid nothing off the principal.

But if the market flattens, you might not have any equity, apart from the original deposit that you paid.

The sweetener for investors is that, unlike principal repayments, interest payments are tax deductible.

There has been some concerns about the high use of interest-only loans of late, so we are seeing higher rates for these types of loans, which is something to keep in mind.

If you want to, you can also choose an interest-only loan for a period of time while you renovate.

What that means is that your repayments are less than if you’re paying the principal plus interest, so you’ll have cash up your sleeve to pay for your renovations.

Should I have an offset account?

The answer to that question is: Yes!  bank reserve interest rate save money finance loan

That way you can retain control of your funds while also potentially benefiting from reduced mortgage repayments.

Let me explain: Products such as offset accounts allow you to use your mortgage as a kind of savings account, offering great flexibility and with interest calculated daily.

For example, you could have your salary paid into your offset account, which is linked to your home loan.

The balance of your mortgage will be reduced by your offset balance, meaning that you’ll pay less interest over the long-term.

But you’ll still be able to withdraw your cash when you need it!

Be mindful however that most offset accounts are linked to variable rate loans rather than fixed rate loans.

Are lines of credit more trouble than they’re worth?

Also known as a home equity loan, a line of credit home loan allows you to use the equity in your existing property to secure your investment loan.

Rather than receiving a lump sum, you can access as much or as little of the loan as you need.

As you’ve probably guessed, this type of loan means financial discipline is vital.

You don’t want to get yourself in a situation where you’re dipping into your equity for impulse spending such as a new car or exotic overseas holiday.

A line of credit is only a good idea if you have the financial know-how to manage the temptation and to only invest it into income-producing assets.

The bottom line on home loans… Home loans market

Here’s the thing: whichever loan you choose, seek professional advice and shop around to compare competitive rates before making a decision.

That way, you can make sure you’re making an educated decision on the best loan for you.

And you have to remember that home loans can be life ­– not just for Christmas – so you need to choose wisely every single time.

from Property UpdateProperty Update

Three charts on: how part-time work is growing more slowly, but more men are doing it

Even though the shift towards part-time employment has actually been happening for many years, it now appears to be slowing, writes…

Jeff Borland, University of Melbourne

Even though part-time work is growing, this growth is slowing over time.

Employment figures for the early months of 2017 have shown stronger growth in full-time rather than part-time employment.

The pattern of slowing growth in part-time employment is a long-term phenomenon.

Growth in part-time work slowing JobSearch

From 1966 to 2016 the share of part-time employment rose from 10.1% to 31.9%.

This increase reflects factors such as the need by employers in some industries (such as retail trade) to adapt to longer opening hours, and entry to the labour market of workers (such as students) who prefer part-time work.

But looking at the change in the share of part-time employment by decade from 1966 to 2016, the smallest increases have occurred over the past 20 years.

Part-time work more evenly spread between men and women

Fifty years ago, part-time employment was mainly concentrated among women – and this is still sometimes the image of part-time work today.

However with the overall growth in part-time employment, it has become more evenly spread between men and women. 


In 1966 less than one in 20 male workers was employed part-time, whereas in 2016 almost one in five worked part-time.

For women, the share of part-time employment rose from 24.5% to 47.0% over the same period.

Growth in the share of part-time employment was most rapid for women between 1966 and 1976, and since then has continued at a slower pace.

For men the opposite pattern is evident.

There was little increase in the share of part-time employment until 1976, and a faster (although not accelerating) pace after that time.

One explanation for this is the rise in part-time work done by students, who are relatively evenly distributed by gender in the workforce.

Concentration in certain industries

Growth in part-time employment has not happened uniformly across industries.

In some industries, such as mining and construction, there has been limited growth in part-time employment (about two percentage points).

Whereas in other industries, including retail trade and accommodation and food services, there has been substantial growth (over 17 percentage points).

The variation across industries, obviously implies that some industries have contributed more than others to the increase in the overall share of part-time employment. job employment australia

In particular, growth in part-time employment in retail trade, accommodation and food services and health care and social assistance, has accounted for about one-half of the increase in the overall share of part-time employment since 1986.

The concentration of part-time employment by industry reflects differences in how production happens in the Australian economy.

For example, in mining, where workers may need to move to remote locations, offering part-time work is unlikely to attract workers.

By contrast, in retail trade or in accommodation and food services, businesses need to be open outside regular working hours, which makes part-time workers an attractive option for these businesses.

Part-time work is likely to continue to grow over the next 50 years, just as it has in the past 50 years, but just at a slower rate. 34405413_s-300x200

What has occurred in the past should be a good guide to how this will happen.

The ConversationPart-time employment will still be concentrated in industries such as accommodation and food services; and the share of men in part-time employment will also continue to increase.

But this slowing in part-time work shows we are certainly not heading for a labour market where we all work part-time.

Jeff Borland, Professor of Economics, University of Melbourne

This article was originally published on The Conversation. Read the original article.

from Property UpdateProperty Update

A glimpse into Wealth Retreat – Part 1

Have you ever wondered what goes on at Wealth Retreat?
dream clock time business man life motivation happy dream

Well…I had the privilege of spending 5 days with some of Australia’s leading property experts and some serious property investors in the first week of June at Wealth Retreat.

In this series of 4 blogs I’m going to share some short videos I recorded with some of the speakers and attendees.

They’ll give you some insights into the minds of some of my mentors.

To kick things off let me reflect on some of my experiences in property investment.

Welcome to wealth Retreat…..


In this video I interview Michael Yardney, Australia’s leading expert in wealth creation through property.

Michael has mentored and assisted more property investors to become successful than anyone else in Australia, including myself.

One thing I really wanted to know though is; “What would he do if he had to start all over again?”


from Property UpdateProperty Update