How would I do it?

No doubt, this is a common thought many people have at some time or other.

Wouldn’t it be nice if it was possible to create significant wealth in a short time frame? Perhaps a matter of a few short years, or even less.

If it was possible, then how could I get started right away?

Firstly, it is possible if using the right strategy or combination of strategies, more importantly.

I’m not advocating getting rich quick however, I’m certainly not advocating taking longer than necessary to create the wealth and lifestyle you may desire.

“It’s all about Synergy, Jamie”; is what my millionaire mentor said to me many years ago.

He went on to explain that if I wanted to become a self-made millionaire in my 20s and was in a hurry, that yes, it was possible as long as I was prepared to take massive action, being intelligent action. I would also need to become a fast learner and apply highly effective strategies in a certain combination and accept no excuses, nor allow distractions from my goal.

He shared with me the 3 key areas to create wealth in:

1. Career (either a job or business).

2. Investing in the Property Market to gain leverage and over time accumulate riches.

3. Investing in the Share Market.

He said the key is to understand Synergy.

He explained that just using one of the above vehicles has created wealth for many Australians, especially in Real Estate. But if you wish to do it in a hurry, combining numerous strategies at once can lead to an acceleration effect.

For example, he asked; what does one plus one equal?

Most people will say two however, this is not the case.

One plus one can equal well more than two, due to the exponential returns of combining strategies.

He went on to explain that by just investing in Real Estate to buy and hold over your lifetime is a powerful way to become wealthy.

But it takes time.

He explained that by combining say, Property Investing with Share Investing you can accelerate your results faster.

For example, he explained that Property in the beginning, when negative geared, provides little if any cash flow, meaning until rents increase and debt decreases you aren’t going to get rich from cash flow.

He said that most people invest in Shares for capital growth and that’s why most people don’t create the wealth from Shares they’d like to.

He said, why would I invest in Shares for capital growth, when in most cases Property has proven a far better return for capital growth?

For example, even 6% pa capital growth on Property, but leveraged at 90% loan is equivalent to 60% pa return on outlay, versus 13% pa in Shares average growth.

With Shares you simply don’t do 90% lends due to its higher risk.

But rather than dismiss Shares altogether, he mentioned what Property can’t give me in the short term i.e. cash flow is exactly what Shares can make if you learn how to rent Shares or sell Insurance.

Actually, he called it another name at the time, but I coined the terms “renting Shares” and “selling Insurance” some years later, to better explain it to others.

The point being, by combining Real Estate for capital growth and Shares for monthly cash flow, one could have the same lifestyle results from Property within 5 Years that would normally take at least 15 years waiting for rents to significantly exceed monthly interest bills.

But he didn’t stop there.

He said that the most common mistake is because people see investing as the fastest way to get out of a job they often don’t like, so they can quit working. They often stop working too soon, slowing their speed to true wealth and lifestyle.

He taught me to focus on building my income up as fast as I could, plus develop multiple income streams. The additional income can boost one’s Property and Share portfolios, accelerating one’s wealth further.

He said it also truly diversifies one’s wealth and makes one recession proof, as if the Share Market is down, often the Property Market is up, or one’s business and career incomes may be doing well.

So to become wealthy faster, my millionaire mentor suggested to consider Synergy and to become financially educated in multiple areas of investments, not just one.