Do you find yourself checking your bank account often, anticipating your next paycheck? So many of us are stuck in the rat race of working really hard to receive a paycheck, only to work really hard again to receive another. Hopefully you really enjoy your job, because working long and hard hours at a job that you think is mediocre seems like a lot of wasted time waiting for paychecks. If you are thinking it may be time for you to step outside of that rat wheel, here are a few tips to get started…
Pay off your liabilities
Understanding the difference between assets and liabilities is one of the most misunderstood financial concept, and yet it’s so simple. Assets put money in your pocket, and liabilities take money out. If you have a lot of liabilities, (boats, fancy cars, too big of a house) then it’s hard to afford assets that build money for you. Pay them off, and stop buying so many! Countless wealthy people live in smaller houses and drive the same car for years and years, they don’t stand out, and it’s not by mistake.
Set money aside every month, before you see it
I am a big advocate on saving for retirement. I am not a big advocate of thinking that when you retire, you will be happier because you are not working anymore. So, if you are putting all of your retirement eggs in only basket, think about how you can start building sustainable wealth now for you, and for your family. It is so easy to spend money when you have it… it’s even exciting to think about how you would spend even $5000 if someone were to give it to you. Save it. Think of something that you want to invest in, set a goal, and save up for it. You owe it to yourself.
Do a little bit of homework
I know, I know– nobody likes to do homework… but honestly, by spending just a few minutes per day on tasks for investing, you will be surprised at how that adds up to something big overtime. Keep working on it, and don’t give up trying to figure something out. There is usually always a way to make investing in a rental house work, it’s important to be creative in your ideas and never give up trying. The only investors that fail, are the ones who quit. Take a little bit of time out of your evening to decide and set a goal on how you can make your money work for you. There are a lot of different investing strategies, try to find one that will work for you and go for it.
Let your money work for you– INVEST
Money is an interesting thing, and it can be leveraged to work for you, instead of you working so hard for it. For example, if you take $1000, and buy a slot machine that people put money in to, that is making your money work for you. You were down $1000, but after 4 months, people have put enough money in there to have paid for your investment, and now anytime someone plays that slot machine, you are making money.
For me, it all started with a little bit of cash, along with leveraging a piece of our primary residence, and we purchased a rental house. Our tenants pay the mortgage, and they also put money in my pocket every month. Sure, I have to keep up with it a little, but it is nothing like working a full, or even a part-time job. Once you do this over and over again, WAH LAH! You are making a steady income without having to get up and drive to the office everyday.
How much money do you need to make monthly in order to get out of the rat race? Make a goal, and go for it!
Comment below on how you started out…
Creating opportunities for financial freedom 