I love investors, because like myself, they tend to nerd out over spreadsheets and let the numbers do the talking. They are risk takers who have found a way to maximize their money, so much so that they are very comfortable, and/or may not need a job all together.
Because that’s a pretty awesome place to be financially, I meet a lot of aspiring investors who want to be in that world. And while it may not be easy for them to tell if they are ready or not, it is fairly easy for me to tell 1.) if they are ready; and 2.) if they are someone I’d like to work with. Below I’ll break down some indicators that you’re not ready, plus some ways to help you become more prepared for the investing world.
1. You Have Not Read a Single Book on Investing
I know some people might push back and say they listen to podcasts or contribute to BiggerPockets forums, but I say having read at least one book on investing is important. Reading a book takes more effort than listening to a podcast or occasionally going to a forum. It’s deliberate. It takes time. It requires a commitment. And, if you can’t commit to 250 pages on something you say you want to do, then maybe it’s not something you really want to do. (Need book suggestions? Here’s a few excellent books on real estate and investing: Rich Dad, Poor Dad (Robert Kawasaki), Long-Distance Real Estate Investing (David Green) and the E-Myth Real Estate Investor (Michael Gerber).
2. You Have Not Adjusted Your Spending
You spend your money on what you value, and there is no right or wrong on that. But, reviewing your finances will give you a good idea of whether or not your lifestyle reflects your goal. If it’s not, maybe it’s not actually your goal. Are you still going out to eat a lot? Still paying for glamour coffees? Been on two international vacations this year? That sounds awesome. It honestly sounds like my perfect year. But it doesn’t sound like…