Tag: Income

Personal Goals that Inspire and Motivate

Personal Goals that Inspire and Motivate

Are you feeling motivated to set some strong goals for this year? Write down those New Year’s resolutions and get going, right? Most people write down lofty resolutions that they think they should want and rarely stick to them, losing motivation and focus within three weeks of their “good intentions.”

This is a brand-new year of limitless possibilities. Do you want to:

Increase your income?
Write a book?
Attract a relationship?
Start a new business?
Become a professional speaker?
Have more personal time?
Take a really great holiday?

I have a gut feeling it is going to be a GREAT year, a BIG SUCCESS year. So, forget writing down resolutions. They don’t work. In fact, the whole idea doesn’t

 really inspire action. So, lets change that.

Start thinking about 3-5 things you want, really want for yourself this year. Not what you should want, or what you think would please others. Dream a little. Think big. What are you passionate about? Entertain several ideas that make you smile, excite you, make you giggle, make you feel really good inside, no holds barred. Remove all mental barriers to holding these ideas clearly in your mind.

Now, put your attention fully on one of the things you want for yourself this year. Visualise and see yourself already there, living it! Creative visualisation is a powerful tool of attraction. Our minds cannot tell the difference between something real and something intensely imagined. Hold that picture in your mind. (Do this daily!)

Does this picture excite you – make you want to have it?

How would your life change if you got (achieved) this one thing you really want?

What would you have in your life that you don’t have now?

Now, the next step is very important. You must decide to go for it. Choose to have what you really want NOW, not someday or tomorrow. NOW. Say YES to yourself instead of saying no. Making the decision fuels your intent to take action.

3 Tips to Get on Track

1. On paper, clearly describe the 3-5 things you really want. I suggest using statements beginning with the phrase” I intend to”. Don’t use “I want”, “I hope for”, “I wish to”, “I’d like”, “I desire” etc. as these are too wishy-washy. Taking a stand with strong definitive statements reflects your commitment to succeed. (This first step is important in creating your road map to achieving your goals. If you don’t define the results you want, how do you know where you are going?). Feel like being creative? Make a collage or dream board for a visual aid in keeping your focus.

2. Moving forward, break down your action steps into smaller steps over a shorter time period like 30 days. For example: your goal is to increase your income, your first step may be to explore options to generate more money. Another step may be to look at your skills and talents for further ideas. A third step may be choosing something you have always wanted to do, something that you love that has the potential for additional income. Maybe it’s a total change of career. The first month may be devoted to doing research and personal exploration.

3. Identify potential obstacles and struggles that could prevent you from reaching your goals. Develop strategies to keep yourself motivated and focused such as reading and listening to positive materials, surrounding yourself with encouraging, uplifting people, joining a mastermind group. HIRE A COACH! Note: let go of using the “money excuse” that you can’t afford to get what you want. Invest in your success. It costs money to make money. How much do you think NO is costing you to stay where you are?

5 Tips to Stay on Track

1. Resolve unfinished business. Either clear the past (make apologies, speak your mind, forgive someone or yourself) and let it go.

2. Stay strong, if you are feeling FEAR. Bring your attention back to the present. Fear creates uncertainty, worrisome and anxiety producing thoughts. (“What if” thinking, Am I going to be okay?) Fear looks at the future and worse case scenarios. Focus on past successes for confidence.

3. Eliminate negativity. Notice the chatter in your head. How do your emotions speak to you inside? What you think affects how you view a situation. Ever heard the phrase self-fulfilling prophecy? Your viewpoint affects your decisions and actions; therefore, your attitude directly affects the outcome. Take a look at the people you associate with. Are they uplifting or do they bring you down? Be selective about who you are with, being around consistently negative or fearful people is draining and disheartening.

4. Keep up your self-care. Taking good care of yourself physically, mentally, emotionally, and spiritually is a key factor in staying strong and focused under pressure.

5. Celebrate along the way. Taking the time to recognise measurable successes motivates continual commitment to your goals.

“The big challenge is to become all that you have the possibility of becoming. You cannot believe what it does to the human spirit to maximise your human potential and stretch yourself to the limit.” Jim Rohn

Rental Yield

When investing in property you should always look at the Return On Investment (ROI), as you are buying the property to make money. Therefore you need to calculate the rental yield to ensure that the property that you are interested in will make you the most money on your investment. Yield uses the rental income over the initial cost of buying the property and it is expressed as a percentage. There are several ways of calculating yield, but for buy to let (BTL) we will use the most common one known as rental yield. This is calculated by the rent minus the running costs and dividing it by the total amount invested to purchase the property. This will give you a percentage, the higher the percentage the better the deal.

So our formula would look like this:

 

Yield = (((Monthly Rental – Running Costs) *12) / Investment)*100

 

Let us do a simple worked example:

Suppose that you have found a couple of potential properties that you are interested in but now you have to decide which one to choose. Property one costs £175,000 with a potential rental of £650 per month. Property two costs £200,000 with a potential income of £800 per month.

 

Property 1.

Monthly Rental Return = £650

Investment = £175,000

£650*12 = £7,800 (Annual Rent)

£7,800/£175,000 = 0.044

0.044*100 = 4.4% Yield

Property 2.

Monthly Rental Return = £800

Investment = £200,000

£800*12 = £9,600 (Annual Rent)

£9,600/£200,000 = 0.048

0.048*100 = 4.8% Yield

 

Although property two costs more to purchase it gives a higher yield, therefore a better return on investment.

 

The above examples is a simplistic version, as it does not include things like voids which can skew your calculations, so you may want to stress test the calculations by using a figure of 10 months annual rent instead of 12 months. You also have to obtain accurate information which includes the following:

  1. Cost of property
  2. Stamp Duty
  3. Mortgage
  4. Mortgage arrangement fees
  5. Building Insurance
  6. Survey Fees
  7. Legal fees
  8. Tenant acquisition fees
  9. Refurbishment costs
  10. Maintenance Fees
  11. Voids running costs (Council Tax, Utilities etc.)

There may be other items that you need to add to the above list e.g. for HMO you may need to include a licence fee and furniture, so do your due diligence and be as accurate as possible.

 

Be wary of yield figures that are given by agents and developers as they are often based on the basic cost of the property so that it makes the deal look more attractive. So do not be afraid to ask questions and ask how they have come up with their figure and use your list as a checklist to help you. Also, do your own due diligence and do a comparable check of local property prices within a ¼ of a mile of the property that you are interested in and what they sold for and also do a similar local search for the rentals in the area.