Being financially fit can change the game for real estate investors.
You’re interested in real estate investing, right? But, did you know that understanding your financial health is just as important as finding the right property to invest in? Yeah, it’s true! Understanding your financial health is becoming a huge trend in the world of investing.
We call it “financial wellness,” and it’s kind of like having a secret trick up your sleeve to help you make smarter money moves and earn more profit. Let’s dive into the details.
Feeling Stressed About Money? You’re Not Alone
A lot of top real estate investors are feeling the pinch of money stress these days. Inflation, the rocky real estate market (especially commercial properties), and increasing credit card debt add to the uneasiness. Even the regular stress of investing in real estate can take a toll.
It’s important to notice whether you’re feeling stressed and figure out ways to reduce your money worries as much as you can. Doing so will help you become stronger and more resilient in your investing journey.
To deal with money stress, you can use several different strategies: You can work with a financial coach, join groups of people who are also working on their money health, or use online programs. All of these tools can help you learn what you need to know to make smarter money moves. Plus, working on your financial health can make you feel really good about yourself.
How Financial Wellness Can Make a Difference
Being financially fit can change the game for real estate investors in two main ways.
1. Better borrowing behaviors. Feeling stressed about money can make you less careful about your finances, in general, and about borrowing in particular. When some investors feel financially strapped or stressed, they shut themselves off from their finances; they are hesitant to look at their bills or even their checking accounts. Can you relate? The good news is this: When you use smart financial wellness strategies, you can feel more confident because you are more focused on positive borrower behaviors, which in turn will help you build life-long fundability.
2. Be more productive. When you’re worried about money, it’s harder to focus on your investments. But when you use tools like financial coaching and online resources, you can tackle your money worries head-on, which allows you to concentrate more on your real estate investing.
Taking Care of Yourself Matters
Remember, financial wellness isn’t just about your bank balance. It’s also about taking care of yourself so you can nurture a higher standard of living and a greater quality of life. To really succeed, you need to do the following:
1. Personalize your financial wellness blueprint. Everyone is different, so your plan for financial wellness should be too. Look for strategies that fit your particular financial goals and situation. You might want advice on how to get low-cost funding or you might want to track your financial health every month by making a budget, managing debt, and planning for the long term.
2. Join a supportive community. Being part of a group that cares about financial wellness can also help. You can connect with other real estate investors who are facing the same challenges you are. Seek out companies that create spaces for people to share their experiences, ask for advice, and support each other—especially during stressful times.
From Credit Score to Financial Wellness
For a long time, people who wanted to get credit or loans focused a lot on their credit score. But it’s not enough just to have a good credit score. You need to focus on your overall financial health because that’s what really makes a difference in getting approved for loans and credits.
To become a financially healthy investor, you need to work on the five Fundability Factors systematically. Think of it like building a bridge. You need to do the right things, in the right order, at the right time to make it all work. When you do, you’ll see a major positive shift in your financial health.