Is this the Law of Attraction of Work or has my friend found his switch?
CL and I were colleagues for a few years. We used to exchange views on our personal financial positions. He had no investments, besides the house he stayed in, which had a very manageable mortgage.
All his plans for providing for his family and his old age, was by way of insurance. He had endowment policies that he was contributing to. These policies would pay a lump sum of money should anything untoward happen to him. His idea was that so long as his children’s education was provided for, it should be okay. He used to complain that he had no money left over for savings.
I used (with the little knowledge I had on pfm) to advise him that he should:-
- draw up his current net worth statement,
- set a goal that he would increase his NW by at least 5%,
- then think and come up with ways to earn or to save that extra 5%,
- that he should set all these in writing.
- And that this little victory would soon him set him on the way to keep improving his NW.
(This was way before, I discovered pf blogs.)
We met up for lunch last week to celebrate the birth of another colleague’s first child. I was surprised, when he asked our mutual friend on his plans for savings for the child.
One thing led to another, and soon he was talking about his recent investment. He had bought an investment house in a locality well populated by private colleges. He had increased the number of rooms and bathrooms. And he was renting them out to students at a rate that was giving him a healthy positive cash flow monthly.
This property had been fully let out within a couple of weeks and on top of that, he had a waiting list of interested tenants. And the house was about 25 minutes from where he lived, making the job of checking up on the property very easy.
In addition he also had investments in Unit Trusts.
All these were done in a period of about 8 months or so since our last meeting.
I was impressed! What a turn around!
I asked him what made him start. He told me that he had been thinking about investing for quite a while, and then it just happened. Of course, he had also done research, looked at a number of properties, talked to various banks on financing options etc.
Is this the Law of Attraction at work? Or has he learnt to do things in the certain way promoted by the 1910 book, The Science of Getting Rich.(not an affiliate link). Or has he found his wealth creation switch?
It does not really matter. I am just happy that I have an additional friend in my peer group whom I can talk to on growing our wealth.