1999 was a new beginning. It began quite simply with a colleague suggesting I read a book. The book has now gone down in history as one of the great financial books of its time. 'Rich Dad, Poor Dad,' by Robert Kiyosaki. I read the book, promptly went out and got the second one in the series. I was hooked. My husband wasn't convinced.
About a month later the same colleague asked if we would like see Robert Kiyosaki in Auckland, NZ in January 2000. The answer was a resounding yes. At the end of the seminar my husband suggested we buy the third book in the series. The five and a half hours trip from home from Auckland flew by as we discussed all the possible opportunities we had gained from the seminar. We took a couple of days off work and read book three from cover to cover twice. Our life as investors was about to begin or so we thought.
New Zealand has a high home ownership population and we decided the best thing for us was to move to Australia and start our new lives as investors. Unfortunately, it wasn't meant to be and within a week we were on our way to the UK following the death of several family members.
Our plans were on hold for about a year while we dealt with the family tragedies. We didn't lose sight of what we wanted to do and by 2001 we bought our first house. Run down and needing repairs. We lived in it for 3 years but always with the intention that it was going to be a rental property. In September 2001, on my husbands birthday we bought another property at auction. Two houses within 3 months. From there we set ourselves the target of doubling our portfolio every year. A strategy we kept going until Northern Rock (one of our major lenders) got into trouble in September 2007, at which stage we had 60 properties and we ground to a halt. The next two years were spent, trying in vain, to raise financing to purchase more properties.
Late August 2009, we were invited to another Robert Kiyosaki seminar. We again bought some more books, sat down and read them together and hatched the next plan of attack. At this stage we had a healthy property portfolio but little else in investments. So we decided now was the time to start building other income producing assets. Remembering the advice from the books. An asset is something that puts money in your pocket. Just keep building the asset column.
We had for twenty odd years dabbled in shares but never in a major way. That was about to change. We devised a two level share strategy. We would buy shares that produced a good dividend yield preferably over 7%. We would also invest in penny shares with the aim to double our money. Sell the shares and put half back into high dividend yield and the other half back into penny shares. We are still operating that strategy with good results.
We also set ourselves a goal of doubling our income from investments other than property every year. 2010 was a real learning curve as we tried different strategies until we found one that worked well for us. We didn't quite make our goal of doubling income that year. But the goal has already been achieved in 2011 and we expect it to be one of our best years for a long time.
We've continued our learning and our investments are now very diversified. We still hold our property portfolio, we have our penny shares and our high yield dividend shares. We operate a lending portfolio where we provide loans to other people through a third party and receive monthly interest in return. We hold gold, silver, copper and other commodities all of which provide capital growth.
We've worked hard to become investors in the real sense of the word. Every day we do something to increase our wealth and our income. We always remember Robert Kiyosaki's advice. The definition of an asset is something that puts money in your pocket. Keep building the asset column.
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