Lunch with a president: Sharing an appetite for leadership

Entrée – Defining success

“Focusing your life solely on making a buck shows a certain poverty of ambition. It asks too little of yourself. Because it’s only when you hitch your wagon to something larger than yourself that you realize your true potential.” ~Barack Obama

Few presidents have walked a more improbable path to the White House. Born in Hawaii to a mother from Kansas and a father from Kenya, Obama was raised with help from his grandparents, whose generosity of spirit reflected their Midwestern roots. The homespun values they instilled in him, paired with his innate sense of optimism, compelled Obama to devote his life to giving every child, regardless of his or her background, the same chance America gave him.

Only very rarely has a person to the same extent as Obama captured the world’s attention and given its people hope for a better future. With his diplomacy founded in the concept that those who are to lead must do so on the basis of values and attitudes that benefit others, he became the first US president to win the Nobel Peace Prize in 2009.

Much like my own mother, Obama’s family stressed the importance of being a successful human being, even more so than a successful businessman. Being a good person ultimately inspires you to do good for others and this is a factor that has played out in my own journey in life.  Obama also shared with us the importance of talking to your children and keeping them grounded, it is important to play it forward with intergenerational lessons.

Nibbles and starters – Creating the right mindset

“Don’t ever make decisions based on fear. Make decisions based on hope and possibility. “ ~Michelle Obama

Unlike the Kennedy dynasty or Bill Clinton, the presidency was not initially on Obama’s radar. It was not until he delivered what is now a famous speech in 2004 when he was a senator, that he and his team realised it was even a possibility.

I often talk about the “possibility mindset”, the idea that no matter where you are in your life, the key to success and building wealth starts with the right mindset. If your thinking is focused on limiting beliefs, your chances for success are slim. But if you open the door to the possibility of success, you will find yourself propelled towards that goal.

3 questions that drive Obama’s decisions

The dinner gave me an insight into the thought process of a president. Obama shared that before he makes any major decisions in life, he asks himself 3 questions.

1. Should I do it?
2. Can I do it?
3. What impact will this decision have on those closest to me?

President Obama also talked about focusing on what you want to do, not what you want to be.

While I agree this is a helpful decision-making tool, some of our most successful leaders and entrepreneurs have the confidence to take a calculated risk and forge ahead knowing that even though the journey may be long, having belief and a willingness to take action and stay the path will ultimately lead to success.

So, what if you find yourself still undecided about taking action even after asking yourself the 3 questions? Feel the fear and do it anyway and remember you don’t have to take this journey alone.

What strategies investors can take to maximize their profits during a rate pause

A pause on the cash rate means that potential investors have more time to consider their investment objectives and determine whether it is the right investment for them. Ultimately, investing in property means not only keeping a close eye on trends within the current market but also staying abreast of changes in the economy and any potential shifts that could affect property prices. Additionally, keeping the interest rate steady may lead to a reduction in costs as banks will try to remain competitive in a historically low-interest rate environment.

One strategy investors can take is to review their investment home loan and, if possible, refinance their existing loan for one with better terms. This may include securing a lower fixed rate or moving to a variable rate that offers a lower interest rate. Investors who are looking to purchase an additional property during a rate pause should identify their ideal loan-to-value ratio before taking out a new loan.

By keeping your LVR thresholds in check, you can ensure that you’re always getting the best rate possible. A lower loan-to-value ratio makes it easier to qualify for more competitive terms, so it pays to be aware of where the bank’s risk levels are set. Planning ahead, and taking proactive steps towards ensuring an attractive LVR profile is the key to securing favourable loan rates — and maximising returns on your investments. When interest rates are low, investors should be mindful of the risk of over-borrowing and try to stay within their capabilities.

Main course – It’s never too late

Somewhat surprisingly, becoming the president was never Obama’s lifelong dream,  and he spoke of the idea that it’s never too late for people to expand their dreams as they grow older and their circumstances change. As long as you follow your heart, do what you’re good at (or educate yourself to become good at what you love), and do something that can benefit others, you will become a success.

His talk of genuinely committing to what you believe in regardless of circumstances resonated with me, as I know from experience that having strong convictions about what you’re doing will ultimately lead to your goal.

Become the president of your own life

“You can’t give up your passion if things don’t work right away. You can’t lose heart or grow cynical if there are twists and turns on your journey. The cynics may be the loudest voices — but I promise you, they will accomplish the least. It’s those folks who stay at it, those who do the long, hard, committed work of change that make the most lasting difference.” ~Barack Obama

When you embark on your investment journey, you are essentially becoming the president of your own life. Even though Obama was surrounded by advisors, the ultimate decision came down to him. And the same philosophy applies to you and your journey as a property investor.

Think of holding an investment portfolio as running your own business. You are the chairperson, the CEO and the president of you and your family’s future. As a leader, you must take full responsibility for everything that happens. Everyone else such as your investment and property strategist, mortgage advisor or accountant are there to service you as the leader. If the leader (you) is not committed to the journey and the end goal, your advisors cannot help you reach the pinnacle.

DESSERT – NEVER GIVE UP ON YOUR DREAMS

“When times get tough, we don’t give up. We get up.” ~Barack Obama.

Leadership doesn’t have to be a lofty ambition. To me, the definition of successful leadership in your own life can be as simple as: