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How you see the world has a significant effect on your success by Michael Yardney

I’ve asked Michael Yardney to write a special guest column today. Michael has been a friend of mine for many years and is our ‘go to’ guy when it comes to property. I’m sure you’ll find his insights powerful. Now… over to Michael.

There are, broadly speaking, two ways to see the world and these have a great influence on how successful you become.

The first is what psychologists call the “external locus of control,” and the second is the “internal locus of control.”

You see… as the world around you changes, you can either attribute success and failure to things you have control over, or to forces outside your influence.

And which orientation you choose has a huge bearing on your long-term success.

This concept dates back to the 1960s with Julian Rotter’s investigation into how people’s behaviours and attitudes affected the outcomes of their lives.

Locus of control describes what individuals perceive about the underlying main causes of events in his/her life.

Put more simply:

Are you the pilot of your life or you just a passenger?

Do you believe that your destiny is controlled by you or by external forces (such as fate, the government, your boss, the system or others)?

Here’s how Charles Duhigg—the author of the book Smarter Faster Better describes locus of control:

“Locus of control has been a major topic of study within psychology since the 1950s. Researchers have found that people with an internal locus of control tend to praise or blame themselves for success or failure, rather than assigning responsibility to things outside their influence. A student with a strong internal locus of control, for instance, will attribute good grades to hard work, rather than natural smarts. A salesman with an internal locus of control will blame a lost sale on his own lack of hustle, rather than bad fortune.

“‘Internal locus of control has been linked with academic success, higher self motivation and social maturity, lower incidences of stress and depression, and longer life span,’ a team of psychologists wrote in the journal Problems and Perspectives in Management in 2012. People with an internal locus of control tend to earn more money, have more friends, stay married longer, and report greater professional success and satisfaction”

What is an external locus of control?

Well, we all know those people.

In fact, sometimes we are those people.

Nothing is ever their fault. There is always an excuse. The world is out to get them, life is unfair.

Duhigg describes it as follows:

“…Having an external locus of control—believing that your life is primarily influenced by events outside your control—’is correlated with higher levels of stress, [often]because an individual perceives the situation as beyond his or her coping abilities,’ the team of psychologists wrote” (24).

The benefits of an Internal Locus of Control

In general, people with an internal locus of control:

  • Engage in activities that will improve their situation.
  • Emphasize striving for achievement.
  • Work hard to develop their knowledge, skills and abilities.
  • Are inquisitive, and try to figure out why things turned out the way they did.
  • Take note of information that they can use to create positive outcomes in the future.
  • Have a more participative management style.

The bottom line:

We aren’t born with an unalterable locus of control, so it is critical to keep an eye on in ourselves so we can improve the way we look at the world.

Sure, bad things happen to us.

But rather than dwelling on them, it’s better to find a useful belief about them and move on.

It’s important to remove the idea that your life is dictated by forces outside of your control.

Of course, to one degree or another, it is. But there is plenty that we can control. You can create your own luck through study, hard work and perseverance.

It’s often said that you become a blend of the five people you hang out with the most.

This is important to keep in mind. Associate with positive people who believe they are in control of their own lives. Their beliefs and energy will rub off on you. And then yours will rub off on them.

It becomes a very powerful and positive feedback loop!


Guest author:

Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog. 

The Markets Have Gone Mad – Gold Coast, May 29

Due to an amusing website glitch, I will be extending the Early Bird Special Offer by 1-day for our Markets Gone Mad Gold Coast function.

Almost every day, I get emails from traders, wanting to know which markets to trade at the moment. They want to know how to raid the markets… raid the profits that only professionals can locate… raid the opportunities that the inexperienced traders are walking right past…

Well, Chris Tate and I are finally ready to reveal exactly this in our ‘The Markets Have Gone Mad’ Gold Coast function.

Register now, so we can finalise numbers by clicking here:

The feedback from the Perth function was fantastic! See the photo below.

A small group of traders, determined to refine their skills, and gain the ability to be nimble, shift their money to the hot-spots, and take advantage of every opportunity.

This is your last chance to book and receive a hefty discount:


Perth seminar

A free Breakthrough event for you…

If you made a decision today to double your income or your turnover — how long would that actually take to achieve? A year? 6 months?

I have a friend who specialises in achieving these breakthroughs with his clients. His name is Rik Schnabel and he teaches NLP, Life Coaching, Speaking and Trainers Training here in Australia, that’s what he does mostly. But that’s not what he’s mostly known for. He’s affectionately known as Australia’s #1 Brain Untrainer because he’s a master at totally turning people’s minds around. He’s actually mastered turning the impossible into the possible into a science.

Rik himself back in 2004, went from $65,000 in debt to creating over half a million in just three months! How did he do it? Well let me just say that changing his mindset was just the beginning. What I think you really need to hear is this.

I’m going to give you an opportunity to work with Rik for 2 days to show you how your thinking can be shifted — and what’s more, it’s on me. I’ve already got you 2 tickets. There is no cost to you — I’m giving this to you as a Valentine’s Day gift.

To find out more details, click here.

Rik Schnabel - advert

Where to buy Louise Bedford’s Books

I don’t mind where you get my books from, as long as you get a copy, and implement the concepts as fast as you can. There are so many great spots to buy my books. To make things easier I thought I’d let you know some other locations where you can hunt them down. However, there is only one place where you’ll receive special bonuses, and that’s the shop at louise bedford trading secretsFor example, if Trading Secrets tickles your fancy, you’ll receive Trading Insights, a Special Report on Macro Patterns and an exclusive video called ‘Dive Brain-First into Profits’ for free. Unbeatable value. Inside you’ll find fascinating insights into:

  • handling a windfall profit
  • identifying clear entry and exit signals
  • understanding the psychological factors that affect trading performance
  • setting stop losses and managing money.

[Read more…]

Where to buy Louise Bedford’s eBooks

A terrific way to learn about the sharemarket is by picking up some eBooks. As technology has developed, eBooks have become incredibly popular, and they can definitely be more convenient for the tech savvy, those with space issues, or those who find that reading a physical book is rather archaic.

Just imagine – you won’t have to pack 10 books when you go on holiday. Bring the one eBook reader, and you’ll have as many books as you can devour while drinking pina coladas. Plus, most eBooks are significantly discounted, so you’ll save money as well. If you find that text is hard to read, some eBook readers let you zoom in on text and you can sometimes even get sample chapters online, so you can try before you buy.

Check out these links for some of our resources that you can get in an eBook format.

Louise Bedford – Amazon Kindle Store

Louise Bedford author profile on Amazon

Louise Bedford eBooks on the iTunes store

Louise Bedford eBooks on 

Six Reasons Most People Will Never Get Rich …and How To Make Sure You Do! by Michael Yardney

Michael Yardney is an investment and wealth creation expert and a guest contributor for the Trading Game.

Successful investors do things in a certain way that helps them become rich while others continue do things differently and in general they tend to struggle.

I’ve come to the conclusion that when you do what most successful investors do, you get to become one of them, and if you don’t, you won’t.

So lets look at six simple reasons most people will never get rich and how to make sure you do:

Reason 1 – Most people wait to long to start:

Most people can’t wait to succeed; yet they are willing to wait to get started on the road to success.

Many investors are waiting for everything to be “perfect” before they get going. They wait for the right time in the cycle, the right property, the right economic environment or the right interest rates. Which means they never get going.

The longer you wait to get started with your investing, the longer it will be before you get the financial freedom you want. It takes time for compounding to work its magic and grow real wealth.

Fact is, the timing will never be perfect. There will always be reason not to invest “now.”

Reason 2. Fear stops them

Fear keeps many of us from getting what we want, especially in matters of money. Be honest with yourself and count the number of times fear has prevented you from taking action, and in the process cost you a lost financial opportunity.

Fear holds many potential property investors back. Some fear taking on more debt, others fear failure and some even have a fear of success.

Successful investors have learned to harness their fears and rather than focus on the negatives, they use fear to force them into positive action.

Rather than allowing fear of debt to stop them, some investors use the fear of being stuck in their job for the rest of their lives, without the financial independence that they are craving, to motivate themselves to take on the commitment of an investment property.

Reason 3. Waiting until they know enough

The fear of not knowing enough prevents other investors from getting started.

However the irony here is that the more you learn, the more you learn that you don’t know! The trap is that many investors think that the way to escape this paradox is to learn even more, so they read more books, go to more seminars, listen to CD’s and watch DVD’s.

As they learn more they find a whole heap more things they don’t yet know.

The way out is to recognize that while you don’t know it all, and you never will, you do know enough to get started with your investing and you will learn more along the way as you apply your knowledge in the real world, surviving any mistakes and challenges along the way.

Reason 4 – Focusing on linear income instead of passive income:

It is important to realise that not all income is created equal. Some streams are linear and some are passive.

Linear income is what you get from a job. You work for an hour and get paid once for that hour’s work, and that’s it. If you don’t turn up to work you don’t get paid.

Passive income is when you work once but continue to get paid over and over again from work you’re no longer doing. The way to become wealthy is having passive income coming in whether you go to work or not.

That’s what happens to property investors. Initially they work long hours, save a deposit and then invest in property. Now their money starts working for them and keeps giving them returns “passively” in the form of capital growth and rental income.

To put it simply “if you’re not making money while you sleep, you’ll never become rich.”

Reason 5 – Not using systems for making money:

A system for making money is something that takes the emotion out of your investment decisions and makes the results more reproducible. Make your investment boring, so your life can be exciting.

Reason 6 – Not being patient

Warren Buffet once said: “wealth is the transfer of money from the impatient to the patient.”

To become a successful property investor requires patience and persistence. Property is a long-term investment, not a get rich quick scheme.

Yet many investors speculate looking for that “big deal” which will land them a jackpot in a short period of time. In general these types of deals rarely occur and are speculative in nature and more risky.

Some investors look for the latest fad or try finding the next hot spot or speculative growth areas. If you are tempted to do this remind yourself that real estate has been the number one long-term multimillionaire maker throughout Australia’s history, yet most people that speculate in the latest fads have not made much money.

You don’t have to look for the latest fads or the latest speculative growth areas if you create your own capital growth through buying a good property at a fair price, then adding value through refurbishments, renovations or redevelopments. By doing this you are manufacturing your own capital growth.

So, it’s really quite simple…

Decide to do these six things that successful property investors do and you are much more likely to become a successful and wealthy property investor. If you don’t do them, then you may never get rich.

Michael Yardney also contributes to Real Estate Talk, Yahoo Personal Finance and Property Update


What Einstein can teach you about investing Michael Yardney

einstein1Michael Yardney is an investment and wealth creation expert and a guest contributor for the Trading Game.

Investment is certainly not rocket science and while you don’t have to be a genius to succeed in property or in fact nay type of investing, it never hurts to learn from great minds when trying to achieve great things.

So let’s look at some quotes that have been attributed to Albert Einstein and see how we can turn these pearls of wisdom into profits from investing.

1. If you can’t explain it simply, you don’t understand it well enough.

There’s lots to learn about success in investing and this can be overwhelming for the beginning investor.

But it’s not really complicated. Take the time to educate yourself and learn what’s really possible rather than get fooled by some of the smoke and mirrors get rich quick schemes which promise you millions with no money down and little effort.

2. Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will spend its whole life believing that it is stupid.

We are all different, with different abilities and different strengths. That’s what makes the world interesting isn’t it?

You’ll be good at some things and not others. It’s OK if you’re not a genius in tax or structures or finance. Investment is a team sport so surround yourself with experts in the areas you’re not good at.

einstein23. A little knowledge is dangerous. So is a lot.

Many first time investors jump into the market without having a plan or a good team of advisors around them.

If it’s real estate investing they buy one of the first properties they come across, often close to where they live (because it’s familiar) or where they enjoy holidaying or where they want to retire. These are all emotional reasons which almost always lead to investment disaster.

While you need to have a sound understanding of property investment strategies and structures, and a good knowledge of the market on which to make your buying decision, there is such a thing as information overload.

I’ve seen many would be investors not take action and stuck in analysis paralysis. Either they’re too confused by the many mixed messages constantly barraging them, or they’re spending too long trying to educate themselves so they understand “everything” or they spend too long looking for the “perfect” investment that ticks all the boxes

I’ve found while these people are waiting for the market to be perfect, the realists are busy buying properties and making money.

4. It takes a touch of genius – and a lot of courage – to move in the opposite direction.

This is a brilliant quote, because the practice of going against the crowd and investing counter cyclically is what makes many successful property investors stand out.

Warren Buffet put it eloquently when he said: “Be fearful when others are greedy and be greedy when others are fearful.”

Sure it is easy to jump on the buying bandwagon when everything is rosy with the markets, buyer sentiment is high and economic conditions are favourable. But you need courage and foresight to take action when everyone else is paralyzed by fear and uncertainty.

Making your own path rather than following everyone else’s can be daunting, but in doing so you will enjoy many more lucrative opportunities as an investor. Because as Einstein said…

opportunity5. In the middle of difficulty lies opportunity.

Just as every boom paves the way for the next downturn, each slump sets the scene for the next upturn.

Many investors who own substantial property portfolios today sewed the seeds of their fortune during the difficult economic times when the property markets slumped after the 2003 boom or the severe downturn 12 years before that.

They took advantage of the opportunities the buyers market of their day provided and then waited for time, compounding and leverage to work their magic.

6. The world we have created is a product of our thinking; it cannot be changed without changing our thinking.

If what you are doing is not working for you then something needs to change.

When things don’t work out most investors jump from one strategy to the next. They try positive cash flow properties and when this doesn’t work they try off the plan or options or renovations. But this is rarely the solution.

These unsuccessful investors blame the economy, the banks, the market, interest rates etc. All these are out of their control.

It (whatever “it” is that is stopping you achieve what you want) won’t change until you change.

This means to become a successful investor you must work on yourself first.

Become financially fluent so that you understand the economy, our property markets and the way world of finance tax and the law as they relate to real estate.

Get a good team around you, engage a mentor who can see your blind spots and join a mastermind group of like-minded investors so you develop the right mindset.

Attend (the right) seminars and never stop working on your own personal development.

And finally…

7. Anyone who has never made a mistake has never tried anything new.

The power of all this knowledge is in its implementation. It has no benefit unless you take action.

Things won’t always work out as you’d hoped and of course there are risks involved in getting into the investment markets. But there are bigger risks to your financial security if you don’t.

Michael Yardney also contributes to Real Estate TalkYahoo Personal Finance and Property Update

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