The real mistake in personal finance isn't renting or owning, but buying assets without knowing what they do for you. Ask yourself three questions about every investment: Is it an owned or loaned income stream? What job does it serve? Does it get you closer to financial freedom?
The mistake isn't renting and the mistake isn't owning. The mistake is where you're deploying your capital into opportunities where you're not understanding the job and the role that it needs to play in your portfolio. This is where you are making the shift from a random collection of assets where you're not understanding what they're doing to a designed income system. So the thing that I want you to sit with, I want you to look at your current portfolio and answer 3 really important questions. Is this element in my portfolio, is it an owned income stream or is it a loaned income stream? What is the job that this is serving in my portfolio as part of my methodical wealth-building strategy? And number 3, is this element moving me closer or taking me further away from the ultimate financial freedom that I want to be able to create?
