What made you invest in real estate in the first place?
Was it because your parents did and you wanted to follow in their footsteps to build wealth?
Maybe you wanted to create additional streams of income alongside stocks or other traditional investments.
I’ve found that your “Why” is one of the most important contributing factors to your success as an investor.
When choosing a new investment, it's crucial to ask yourself: Why are you making this decision?
Without understanding your motivations, it’s easy to lose sight of your goals or burn out in your pursuit of building generational wealth.
For many, investment decisions are based on following a financial plan laid out by an advisor. However, a more meaningful approach to investing involves aligning it with personal and financial goals.
Uncovering your WHY can illuminate a new path in your investment journey, helping to construct a portfolio that resonates with your values, risk tolerance, and aspirations.
The significance of you truly understanding your “why” cannot be overstated.
Imagine the possibilities: accelerating your retirement, starting a new venture, enjoying more time on vacations, securing your family's future, laying the groundwork for generational financial security, or supporting causes close to your heart.
This approach transcends the conventional wisdom of fitting into a pre-defined investment model and encourages active engagement with each financial decision.
Explore Your Motivations
To help you become crystal clear on your motivations, not just for real estate, but investing as a whole, I’ve put together a list of questions to ask yourself.
Here they are:
- Are you deferring life's pleasures until retirement?
- If retirement could come 5 or 10 years earlier, how would you utilize that time?
- What pursuits would you pursue if money wasn't a constraint?
- Without time limitations, how would you spend an extra two weeks in the coming months?
- How do your investments reflect your principles and objectives?
- What legacy do you wish to leave?
Reflecting on these questions will provide insights into your motivations and prompt more informed, purpose-driven investment decisions.
Align Your Strategy
Once you've identified your motivations, it's time to align your strategy. Reassess your portfolio.
- Does it reflect your WHY?
- What adjustments are necessary to align with your new goals?
- Which investments or asset classes will help you achieve your desired outcomes?
- Which investments are no longer serving your new objectives?
- What decisive actions do you need to take this year?
- Are there any investment decisions you've been postponing?
Tying It All Together
Achieving your investment goals and aligning your portfolio with your values and principles requires proactivity and conscious involvement.
That level of intentionality and direction cannot be achieved by taking a backseat to your own life. Take control of your investing and your financial future by discovering and embracing your WHY.
Nighthawk Equity helps smart investors attain their investment goals. Contact us to talk.