Be a “Do-er.” Not someone who sits on the sidelines waiting for things to happen. Nor the person who preaches but doesn’t practice what they preach.
One of the biggest things my husband and I did was to eliminate our TV and cable. We got tired of sitting and watching others make money or do things that we have always wanted to do. So, as tough as it was (I had to give up Discovery channel and HGTV) we ended cable services (saving $150 a month) and sold the TV (for $400) and began our journey being active people.
Within 3 months, we bought our first flip. Within 5 months we made our first $15,000 in profit. Within 5 years, our income went to $4,000 extra on top of our $6,000 income from our two main jobs. By our 8th year, we were both laid off, but found out that our real estate investment and vending machines (4 routes) still provided us with an additional $6,000 a month income. By our 15th year, we now bring in $8,000 a month and still have the benefit of tax shelters for our investments. We still try not to use any of that monthly income in order to keep on reinvesting for higher and better gains to this day. Almost every penny made goes right back into property improvements so that we can keep raising the rents and pay off our mortgages faster on our rentals. Our goal is to hopefully, increase our monthly income to $10,000 a month and have an emergency savings of $20,000 built back up within the next 3-5 years.
When we reach our 50s, we both hope to permanently retire and with our health in tact. I think this is doable. We don’t sit often. The only factor going against us as small business folks is that we cannot afford the healthcare insurance. However, we have noted that paying as you need health services has been much cheaper than paying an $800 a month insurance premium. (That $800 is equal to our grocery bill for the month—Groceries or health insurance????—hmmm….). I knock on wood often and wonder how much longer we can run the medical care gauntlet. But the physical workout we get from remodeling homes and apartments and while we search for the next investment either by walking or riding bikes will help to keep us in shape better than watching TV for half a day. And if we continue the 12-15% returns on each flip (doing 1-3 a year), we hope to be achieving that $10,000 or more a month goal yet.
I type this while listening to Nickelback’s song, “If Today Was Your Last Day.” What would you do to make the change you wish to see? Let that song inspire you to write out your goals and plans. And most of all, become active and pro-active. Swim against that tide.
“Millionaires cause things to happen. Average people have things happen to them.”