Post-pandemic Principle #3: Sort out your personal balance sheet (owning vs. renting, assets vs. liabilities )

The past few years have opened up unprecedented opportunities to work remotely, live and earn overseas as a digital nomad, or to live on your own terms as your own boss. 

In this new mini-series, I discuss the 8 key principles for post-pandemic prosperity and embracing the opportunities that have arisen to the full. 

Your personal balance sheet

Too often people become saddled down with unproductive debt which keeps them tied in to the workforce up until the age of 65 or beyond.

How can you think smarter when it comes to you personal balance sheet.

It starts with what Robert Kiyosaki described in the book Rich Dad Poor Dad, and understanding the difference between assets and liabilities. 

Carrying some mortgage debt for investments can be OK if it's propelling you towards your financial goal, but borrowing for cars, consumer debt, or depreciating assets is a one-way.

Don't be afraid to consider renting, depending on your circumstances - you can rents cars, boats, planes, holiday homes, and sometimes even where you live - usually for a fraction of the cost of owning. 

In particular, if you're earlier in your journey and you're potentially going to work overseas for a period - or if you don't know where you're going to be living and working 2 or 3 years from now - then renting can make a lot of sense, depending upon your circumstances. 

Efficient finances

It's not to say that there's a right and wrong answer here, but a great starting point is to draw up a personal income statement and balance sheet, and to work out if it's as efficient as it could be. 

Ultimately it's a numbers game, and for as long as you're in a position where you have to make mortgage repayments each month then it's difficult to be free. 

Don't overlook the opportunity cost of dollars that are locked up, meaning that you can't invest them for your future. 

In particular if you own a property which is a money pit, what is the cost of what those dollars might be doing for you instead?

I discussed this a little further in the short video below:

---

P.S. Whenever you’re ready…here are 4 ways I can help you manage your own money and go next level wealth:

1. Boom or Bust in 2023 – 20 minute online workshop for investors

Register for my next free online training - Boom or Bust? How to change your investment plan for 2023 - book in here

You also download a free copy of my e-book The Only 6 Ways to Become Wealthy here.

2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is one of Australia's biggest business podcasts.

And our enormously popular Low Rates High Returns Show is also available on Spotify.

3. Subscribe for my free daily blog

Subscribe for my free daily blog with well over 3.4 million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 12,600 followers. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here. 

If you’d like to work directly with me directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”…tell me a little about your situation and what you’d like help with, and I’ll get you all the details!