My stupid simple personal property investment strategy

From the desk of Nathshapes

Subject: My stupid simple personal property investment strategy

Bit of a mouthful that.

Strategy: Make enough money so I can invest without stress.

What does that mean?

For the first time ever, I’m about to share with you my personal investment strategy, for property at least.

I’ll use property as an example as it’s the most cliche and the one that everyone believes to be the best investment in the world.

Sidetrack:

Some people think I hate property as an investment strategy the way I talk about it, but I don’t hate it all.

I just think it’s a very stupid investment for a lot of people.

I won’t get into why It’s a very stupid investment here, I’ve got another blog post coming out about that very soon.

Before I get into my personal property investment strategy, I first want to tell you…

If you can’t save a minimum of £1000 per month, you should spend it instead.

To cut a long story short, if you can’t save more than £1000 per month, your life will be immeasurably better by spending the money on “living your life”

Your focus should be on INCREASING YOUR INCOME.

Not saving.

You must have heard the quote:

“You can’t save your way to wealth”

Which is true.

So don’t try.

I’ve never had a fun month saving my money.

Some people may find saving every penny fun.

Seeing how many coffees it takes to save £100.

That’s not my idea of fun, and it’s not what I’ll recommend to you.

Don’t get me wrong, I love a good bargain, I won’t overspend if I don’t need to, and I still buy clothes from thrift stores.

But I never have the mindset of:

“I’m not going out because I need to save”

“I’m not coming to the meal because I need to save”

“I’m not going to go on holiday because I need to save”

I just focus on making more money instead.

Savings of anything up to £999 per month, should be spent, enjoyed, wasted, pissed up the wall, and forgotten about.

However, DO NOT FORGET, while you’re enjoying your life, you should be looking to increase your income in any way possible.

Increasing your income is your primary focus from now on until you can save at least £1000 per month.

My personal property investment strategy.

Make enough money so I can invest without stress.

What does that look like?

I want to buy 1 buy-to-let investment each year with the average property price being £100,000.

I’ll need £25,000 for a deposit

+ £3,000 for fess

+ £8,000 for the refurb

A total of £36,000 per year, disposable.

That’s £36,000 per year on top of the money I want to spend enjoying my life.

If I want to spend around £10,000 per year on travel

and around £8,000 per year on meals, breakfasts, nights out etc…

That brings me to a total of £54,000 per year disposable.

That’s after I’ve covered my living costs.

So, £54,000 per year will allow me to enjoy my life exactly how I like, plus buy at least 1 buy-to-let investment every year.

Not bad.

My living costs are roughly £1,500 per month.

£1,500 x 12 months = £18,000 per year.

£54,000 + £18,000 = £72,000 per year.

I need £72,000 per year after tax to fulfill my plan.

Pre-tax means I need to make £120,000 per year.

My take-home pay will be £72,950 after tax and National Insurance.

This equates to £6,079 per month and £1,403 per week.

(Yes, they will take £50,000 a year off me for tax.)

Now you can start to understand why I want to take my money abroad.

But that’s a post for another day.

Anyway, there you have it.

My personal property investment strategy.

Increase my income to £120,000 per year, spend and enjoy my money, and buy 1 property per year.

It’s not rocket science.

Stop making it more difficult than it needs to be.

Your man,

Nathshapes