Financial Base Camp

Welcome to this weeks episode where I want to talk about the concept of a financial base camp.

As always get involved in the comments below.

—
Would you like to spend an hour with me either over the telephone or via a Zoom call, and you can ask me anything you like about my journey, your journey. If you want me to design a specific wealth program for you, then we can do that during that time too.

You can do this by going here: https://www.calendly.com/stupidisthenorm

****************
If you would like to receive exclusive content and follow my financial journey then make sure you hit the SUBSCRIBE button above. Why not jump on our mailing list as well right here: https://www.stupidisthenorm.co.uk/newsletter-sign-up
****************

NEW!!! – Grab Our SITN Merch: http://bit.ly/2ZaHHxf

FREE Tools & eBooks

Monthly Budget Calculator & Repayment Accelerator:
https://www.stupidisthenorm.co.uk/free-downloads

The Only Guaranteed Way To Become Wealthy In The World & Wealthy At 30 E-Books:
https://www.stupidisthenorm.co.uk/free-financial-ebooks

Get more advice and read my blog here: www.stupidisthenorm.co.uk

Email me: editor@stupidisthenorm.co.uk
Facebook: https://www.facebook.com/stupidisthenorm/
Twitter: https://twitter.com/stupidisthenorm
Instagram: https://www.instagram.com/stupidisthenorm/

Creative & Editing is by Pix3lfactory: https://www.pix3lfactory.co.uk

#financetips #retirementplanning

DISCLAIMER – Any advice given in on my channel and videos is for information purposes only, and does not act as financial advice. Your financial decisions are your full responsibility, and if you are in any doubt, please contact a Finance adviser before undertaking any investment with your money or change to your financial activities.

Hi guys, and welcome to the video from Stupid is the Norm the channel where we demonstrate how to become a millionaire in ten years while earning only minimum wage. And in this video, I want to explain to you the concept of a financial base camp.

So if financial base camp is a position from which you take stock, from where you’ve come from, what you’ve done and what you’ve achieved, and you use it as a base to push forward, it’s using the mountain climber analogy here because a base camp is a camp where you are

Secure, where you won’t be pushed further back from. But it’s also a base from which you’re going to thrust forward towards the top. Now, there is no right time or amount of money accrued until you set your base take base camp.

Again, like much of what I’m doing here, it’s not there’s no right way of doing it. What’s right for you. But one thing, I’m going to hit my base camp before July next year when I buy the fifth property and will take a portfolio value to about half a million pounds.

And it’s from there, I’m going to start to think who I’ve got this for. Now I want to secure it to make sure that I don’t lose it so nobody can take it from me. So what I did was I made a list of the threats

That I thought I could take, all the gains that I’ve made thus far, and then I makes a took some actions or wrote some actions after the list of each item where I said, Well, this is what I’m going to do to protect myself, to make sure this can’t be taken from me.

The first thing on the list was a large bill. I come across this issue on the first problem bought when I had to replace the roof unexpectedly, so I know what that was like. I know how that threatened the project.

So I have a quite a precarious living right now and I wouldn’t choose to do it had I not put myself in a corner and give myself ten years to do this because I’ve been stupid all my life and left it too late.

But what I did was I or what I do, rather, is that I save money close to £30,000 and the one I’ve done that I buy a property with it. But what I do is it takes the bank account quite high when I’m in a secure position.

But then the day after by the property, the bank goes down almost zero. And so there’s a precarious bit there where I’ve got to wait 5 to 10 months when I’ve got nothing in there. Should should probably write an emergency.

Right now I’ve got a dip in the fund, but that’s a precarious six months. So what I want to do, rather than buy the sixth property is not buy this six property until I’ve got £20,000 saved up my stocks and shares. Isa So it might delay the project a little bit,

But I’m hoping the income from other things will restore that balance and keep me on target. But what it does do more above all else is that it protects me from any large bills coming in because you know, it only last every ten years. And by the time you’ve got five properties,

So expect a boiler to burst or what is a pack in every two years. So there’s £1,000 plus I’ve got to foresee for the future. I need some money in an account to make sure I’m covered and it doesn’t threaten the project control. So that’s the first thing I’m going to do,

Is I’m going to say about £20,000 in a stocks and shares. Isa, the next thing on my list was illness or ill health, something that stopped me from going to work as a cabdriver and saving £1,000 a month towards the project.

So I’ve always been fortunate enough in that I’ve don’t generally get ill, don’t go that need to go to the doctors, anything like that. My wife says I do actually, but I just push through, which is probably closer to the truth. But in health a large problem could slow me down.

So I want to prevent that and there’s only so much I can do to do that. You know, I’m 62 years old, so the normal aging process is happening, but I can slow it down a little bit and at least stack the odds in my favor. What I’ve done in the past,

I’ve always been a keen runner ever since I was in the forces. And if I’m honest, I’ve stopped doing so much of that. And I guess that could come down to age. It could come down to work in 60 hours a week and not being bothered to do it.

But I’m really going to get back into running. I’m going to go for a run this afternoon. That’ll be the third time this week. I want to keep the runs up to about three or four times a week. I’ve also I think I’m drinking too much,

So I’ve sort of knocked that in the head Monday to Friday. So only drink on a Saturday afternoon now or Sunday evening and hopefully trying to take six dry days a week. And again, there’s no guarantees that this will work or make me feel any better.

But again, just stacks the odds in my favor. So avoid ill health issues. The next thing on my list, the next threat on my list is government meddling. Government and local authorities, for that matter, could meddle in a number of ways and won’t prevent me from hitting my target.

They could do things like put up tax rates, which naturally means I’ve got less money to invest. Mitigated that a little bit because I’ve bought the last property so as to combination property on future properties through limited company. So I’m not exposed to the tax of a person buying in his own name.

Limited companies have a lower taxation level, so that’ll help me there. And if I said I’m already going to put some cash into a stocks and shares ISA so I’m spreading the investment of the asset class and not being wholly in property, but predominantly

Because I need the growth in order do this thing in ten years I guess are the ways that the local authority can slow me down or the government for that matter is they reduce the amount of second properties that a person can buy that could throw me off the project if you wish.

But again, I think I’d probably just put more money into stocks and shares. Isa local authorities can and they do on the surface accommodation property in Hartlepool. What they do is if they find out it’s a service accommodation, they ask you to apply for a change of use which slows the process down.

Doesn’t mean you can’t get it. It’s just means they’re trying to limit the amount of service accommodation. And again, you know, we’ll cross that bridge when we come to it. That isn’t an issue right now. But all these things could threaten us and it’s just as well I would be aware

Of them and then prepare for them should they ever come. Next on my list is a divorce. That would hurt, although it’s not imminent, it’s not even on the horizon, but it’s a possibility. Once I’ve been doing this project, I’m just over five years into it now.

The rest of my family have not been involved in as much. They haven’t had to work more, They haven’t make the sacrifices I do, other than the fact that I spend less time with them. And I’ve got to be careful not to neglect my beautiful wife.

So what I’m going to do this year, for the first time in five years is I’m going to take away for hunting. If that doesn’t happen, by the way, if circumstances change, she’ll be none the wiser because she doesn’t watch these videos.

But it’s something I have to look at to make sure they’re on on this journey. You don’t neglect your family. It’s important to be obsessive about the goal, but not to the exclusion of your marriage. I would say the most likely threat, and probably the only existential one,

Is that I lose my main income. If I lose my main income, for whatever reason, maybe the company shuts down or I don’t know, whatever reason. And it’s the danger that many people in, if they only have one source of income, the chances of losing that great possibility and threatened your livelihood.

So I’ve wanted to do something about that for a long time, which is why of the reason why that I’m going to write this book in July and publish it in July. It’s already written. I’m going to start the subscription. So I’m going to start a consultancy service

Because I genuinely get worried that if for whatever reason, I can’t do this cab driving job and I lose £1,000 a month of saving or contribution towards the project, then that’s going to hurt me the most. So I would urge you to do what I do and try

To look for ways of getting second incomes and to make sure you’re not dependent upon this one big number that comes in every month. And it’s just one big number, The lack of this one big number that could threaten to threaten your lifestyle. Next threatened is interest rates.

If you’re watching this sometime the future January 2024. And interest rates have just come off their peak so they look like they’re heading down. So that won’t be an issue. But it’s some of the concern myself about in the future. One of the things I want to do in the future is

Once the project finishes is to reduce the size of the mortgages down to 50% of the purchase price, not the not the value of the purchase. But what if I bought the property for in the first place?

I want to get it down to the motion of 50% of that because that will protect me from any future interest rate rises and they will come. Not now. They’re dropping right now, but they will come because we get a recession on average every ten years,

Not just in this country, but across the world. And when a recession comes on, interest rates get get lower to try and stimulate the economy. But quite often the interest rates are high before that. So you go through a cycle of boom and bust and one starts

The other and one takes out and hedges towards the other one. So they call it cyclical comes every ten years. So you have to be prepared for them. So that’s what I want. Do the futures get the the the mortgage amount of two 50% of the purchase price.

So that is the problems as I see them. Any potential threats and what I intend to do about them to protect myself from when they work, who knows? As I’ve said many times before, there are no guarantees in life. But if you’re aware of potential problems and you take steps to mitigate them,

You’re better prepared. Don’t be stupid. And don’t be normal, guys.