Most people associate being rich with how much money someone makes per year. However, there are people who make $500,000 a year and have nothing to show for it. They have no savings, no investments, but look rich. On the other hand someone could make $50,000 a year, have money saved, have investments and be much better off than someone who looks richer, and makes much more money. To me being rich is not about how much money you make per year, but what investments you have, the passive income you have coming in, and what you have to show for the money you have made.
I am not one to bash people who make a lot money, I think it is fine to make a lot money, and to buy expensive things. But, you should always invest first, and build your passive income before you splurge.
How much money can you make with rentals?
I started making really good money as a real estate agent in the mid to late 2000's. I was selling foreclosures for banks, and sold over 200 houses a year, multiple times. I was making good money, but I was also anxious and uneasy about the money. I felt like I should have a lot more to show for the money I was making. After paying taxes, family expenses, for the houses, the cars, and vacations, there was not a whole lot left over.
I was able to eliminate that anxiety by investing. I started buying rentals, which helped me in multiple ways.
I did not feel bad about money, because I knew the money I was making was going towards building something. Every property I bought added cash flow, net worth, and bragging rights. After buying 16 rentals I had about $8,000 a month in passive income after all expenses including a mortgage and property management. Not only did I feel good about the money, I had freedom to take more risks and have more fun, because I had a safety net under me. That is one reason I was able to flip 26 houses last year. https://investfourmore.com/flips/
I only bought my fancy cars after I owned a certain amount of rentals as well.
I tell this story because many people may look rich or think they are rich, because they make a lot of money. What happens if they lose their job? The person who is making $50,000 a year, but has invested some money is better off than the person who is making $500,000 a year, but has nothing.
My idea of rich is being able to do what you want, when you want, because you have money coming in that you do not have to work for. It could be from a business, the stock markets, or real estate. You don't have to make a ton of money to build that income. It is a wonderful feeling knowing you have it whether you work or not.
Here is another article I wrote that goes into more detail: https://investfourmore.com/2018/01/15/achieve-financial-freedom/
I appreciate the follows, upvotes, and comments!
