The Financial Fortress Blueprint
Having written for the leading national property publications for over a decade, it is an absolute pleasure to start contributing to Blue Bricks Magazine.
To ensure 2024 delivers you a maximum return on your wealth creation activity and efforts, I share with you the only strategy you need to understand that when it comes to making money – ‘Living off the Steam’ – is the only game in town!
I started my entrepreneurial career as a busy business owner – starting, scaling, buying and selling over 40 companies, but it wasn't until later, when I mastered this strategy, that my wealth creation accelerated, and true financial independence was achieved.
At the age of 37, I live in a 10,000 sq. ft. grade II* listed manor house, with a Rolls Royce and driver out front, both of which cost me absolutely nothing!
Over the last 21 years, I have realised that success and failure are both predictable and while achieving the same or similar results will require your hard work and energy, having the correct blueprint, is the piece of the puzzle that most people are missing.
We have been teaching these blueprints via the UKs highest rated business in property training programme, Property Entrepreneur, since 2013 and you can get these for FREE, by following us on Instagram PropertyEntrepreneur or by listening to The Blueprint Podcast.
The ability to achieve genuine and sustainable financial independence, depends on your understanding of wealth creation – for you to ‘live off the steam’ produced by your assets, rather than relying on the profits they generate, which require ongoing effort.
Financial freedom is being self-employed and not having to work for someone else.
Financial independence is not having to work at all, ever. Period.
To achieve financial independence, where your car and house are paid for every month, there are three levels you must work through to enable you to build your ‘Financial Fortress’, which is a solid asset base that covers all of your lifestyle costs.
The first objective in wealth creation is to buy back your time, so you can then work on highly lucrative activities.
This is achieved by reducing your monthly outgoings and lifestyle costs by as much as possible and building a predictable cashflow income stream, which offsets this in as few hours as possible and then STOP!
Cashflow income is noisy but needed and includes property strategies such as houses of multiple occupation (HMOs) serviced accommodation (SAs) and lettings agencies.
Once you get to the break-even point, where your monthly outgoings are covered by your cashflow income, you have reached the stage where you move to Level 2.
Cashflow businesses are a means to an end, that is all.
With lifestyle costs taken care of, we stop level 1 cashflow and start looking at level 2 profit.
Profit strategies are large capital events that do not provide a monthly income. They may take months or even years to come to fruition, but when they do, these are the lump sums that significantly increase your net wealth.
Profit strategies include things like deal packaging, flips, build-to-sell developments or company exits and sales.
You are ready for level 3 when you are not required to pay your living expenses through the 6 or 7 figures a year, you are making from large capital events.
This surplus is then used to buy boring, low-risk, low-return assets, such as single lets, blocks of apartments, commercial property strategies and anything you can put on a 5+ year lease. They do not require your time and carry minimal effort or risk, compared to cashflow.
Repeat levels 2 and 3 until your monthly outgoings paid for by cashflow, can be settled by the steam generated from your Level 3 assets.
It is at this juncture, when you are living off the steam from level 3 assets, rather than doing level 1 cashflow strategies to pay your living expenses, that you have achieved genuine financial independence.
If you are serious about creating long term, sustainable and generational wealth, then listen, for FREE, to these episodes from The Blueprint Podcast, to give you everything you need to take this to the next level:
Episode 72: Financial Fortress – The Basics
Episode 96: Living Off the Steam
Episode 125: 10 Layers of Wealth
Already making over £100k a year? Send me a social media DM or email my team at bianca.oconnor@property-entrepreneur.co.uk, for an invite to our annual Financial Fortress event which will be taking place in spring.
I trust you got value from this blueprint, and I look forward to sharing more in future articles.
Until next time, remember – success and failure are predictable and you only need to find the right blueprint, act and execute relentlessly.
Best of luck,
Daniel Hill Property Entrepreneur
Instagram: PropertyEntrepreneur_
Facebook: Daniel Hill Property Entrepreneur
Website:
Assets
Property Entrepreneur, Daniel Hill, is an award-winning serial entrepreneur, investor, developer, speaker and writer. As founder and chairman of PPN UK, a leading UK property group, Daniel oversees the investment and operation of 20+ trading, development and investment companies.
Having successfully started, systemised, scaled and sold many companies, Daniel spends 70% of his time managing his own investments and businesses.
