When I think back to when I was younger, I can remember that feeling of inadequacy and exasperation as if it were yesterday. Meeting people who owned businesses, apartment buildings and prominent jobs was just intimidating. I was a piano player. I made a good living but had not a clue on what it was like to buy a car, a house or amass a substantial sum of money with which to operate. It was like a catch 22. I was unable to understand and fathom what is was like to break out of my pattern of paycheck to paycheck mentality.
Making matters worse, as the years progressed the balance of economy had been turned upside down. Everyth8ing became more costly. Interest rates soared in the 80s making owning a mortgage impossible for so many because the interest rates went through the sky. Moms no longer were able so sit home and let dad work. The economy demanded a two person working family. Salaries were stagnant as rents, mortgages, food, insurance and everything else began to cost more. Can you wrap your head around that everyday struggle and frustration? I can. I lived it. You may be living it yourself! Putting fuel in your vehicle has become a $50 to $65 dollar event depending on the vehicle you drive. Now that most of the manufactures have switched over to SUV’s and larger vehicles, fuel is even more costly to operate your vehicle.
If you bring home $600 to $800 per week after taxes, how in the world do you make it work? It’s not easy. Let’s look at that together:
Rent/food/car insurance/fuel/entertainment/credit card debt/mortgage and miscellaneous expenses like travel, school supplies/bus/train fare/eating out/cleaners for your clothes, detergent and so much more. Take a moment and make a list of your personal expenditures, Mortgage, rent or otherwise. We’re all a bit different so I won’t try to list them for you. Add them up and see how that compares to your weekly after tax pay.
You may be surprised or even distraught when you find out you don’t have enough money remaining to pay all of your bills. That’s where the credit card devastation begins. People resort to credit cards because it’s easy. Just say “charge it”!
Part of our problem about balancing our money and planning for retirement is the lack of awareness. For so many of us, it’s actually out and out denial. We don’t want to know. It’s uncomfortable. I can remember drinking too much, walking the house at night thinking, i must find a way to make more money, pay down the credit cards and turn this life of mine around! This behavior continues for some time much like the rat that kept going round and round and round. I’ll openly admit that was a hard time of life. Being young, married with kids and behind the financial 8 ball made me feel inadequate. Not a good feeling.
After those hard times, I vowed to clean up my act and get pissed off at all of the unreachable goals I didn’t understand and didn’t know how to accomplish. There is no book, no periodical and no course on how to straighten up your act! Some of us seek God. Some go to therapy or counseling. Some find a book that motivates them and presents a strong model to emulate.
So, regardless of how you come to Jesus, have a hard look at what it takes to move your life forward financially. I did. I know I made some rash changes and took risks. But, be clear. They were not without study, research, motivation and careful consideration. None of us are clairvoyants. With the proper knowledge and education, you can do pretty much what you want to do in this life. We are all different so what’s attractive to one of us may be unattractive to others. It doesn’t matter. You CAN do it if you become educated about what you choose. Of course, your choices shouldn’t negate the obvious path of vocations that do not offer a healthy and attractive compensation. I chose real estate because I learned that I loved it and it fascinated me to think I could be a landlord. Of course, I was under the impression that landlords took the rents and made all the money. Well, I wasn’t always like that but there was a clear path of financial growth that quickly became obvious. Before I knew it, I was no longer paying my mortgage because my tenants paid if for me. That was all about Cash Flow. (the difference between the mortgage and the rent paid by the tenant. That was an amazing occurrence that made me so excited that I went on to purchase more rental properties. there was no stopping me. I went nuts with excitement. I believe that after many years of struggling to make ends meet and working hard to just get by, I was reborn when I began being an investor and buying rental properties. It’s been more than 25 years since I had to take money out of my own pocket to pay my mortgage. Other people’s money did that for me. With each property I purchased (using bank loans), the benefit grew larger. After the 5th property, new ideas came to mind.
I began ti inquire about other investment strategies like Lease Options and Seller financing. Learning about all the needs of the general public had spawned a whole new set of business practices for me. I took a hard look at peoples needs and employed real estate strategies that filled the need. I quickly figured out that everyone needs a place to sleep at night and I would provide that using different socio economic platforms. Not everyone can pay $1900 per month. So I purchased multi-family duplexes in other areas that would support a $700 rent x 2 made for a nice pay day. Over the past 14 years that rent became 1445 x 2 and the mortgage I took out was still the same $800. See where this is going?
YOU CAN DO THIS!
Real estate had a life all its own. When all the naysayers in 2005 were frightened and skeptical about buying real estate, I kept buying. They are still broke, by the way. Do you know any broke Real estate investors. I don’t and neither do you.
My mission:
My mission is to help others see that they are not limited to what they know or what’s they’ve learned. The opportunities for building wealth and a healthy retirement are out there and available. I chose real estate because others were afraid and I understood the tremendous need out there.
There’s more! Much more! This gets bigger and bigger as you progress. Stay tuned for more.
Remember: Do not spend the money you will have! Spend only the money you do have.
Your FinancialJunkie
thefinancialjunkie@gmail.com
WEALTH CREATION, YOUR LIFE, YOUR RETIREMENT 