Know your balance sheet, income, and expenses before you invest. If you need $10,000 a month to live, you need $1.6 million earning 8% returns. Your numbers tell you what deals actually work for your life.
I'll share just one more that really come into this philosophy of thinking like an investor. And one of them that I think is really important is investors know their numbers. That doesn't mean that they have to be the best analyst, they have to be able to underwrite every single deal, although those things are valuable and important depending on your role. When you know your numbers, you know your balance sheet, you know how much money you have, you know how much money you owe, you know your net worth, you know how much money you make every single month, you know how much money you spend. You also connect it to a larger vision of what you're actually going after in your life and what is the purpose behind The person who's investing $1.6 million at 8% to make $10,000 a month, that person is thinking, okay, it costs me $10,000 a month to live a basic life for that person. So they want to know that they've got that covered. So their purpose behind investing is clear because they know their numbers.
