Everyone wants to be rich, yet how do you actually achieve this?
There is a reason that the rich keep getting richer and the poor keep getting poorer. Actually, it is only because of 1 thing. That one thing comes back down to Assets vs. Liabilities. The rich get assets that then pay for their liabilities, while the poor get liabilities and no assets. Poor people save money in order to buy the things they want, while rich people save money in order to buy things that will make them money.
Let’s take a car for example. Everybody wants to drive around in a nice $60,000 Mercedes. Now what the poorer/middle class would do is save the $60,000 and then go buy the car. While what rich people would do is actually save that $60,000 and then could buy 3 rental properties worth $100,000 so in total $300,000. They can do this because they put 20% on each home which in turn is their $60,000. Now from that rental property after all the expenses and fees they usually have an extra $400 per month on each property. I know this because I have 5 rental properties ranging from $70,000 to $290,000. So each month they are paying down the amount of the house that they still owe and get an extra $1,200 per month from their 3 properties. Now after 10 months of solid income from their properties they will have the 20% down payment of the $60,000 Mercedes they have always wanted and more than enough to cover the monthly payment of it as well.
Now you’re probably wondering why doesn’t everyone do this it is so easy. The reason for this is because it takes them 10 months longer to get the car they want.
Patience is a virtue.
Overall, the difference between the rich and the poor, the poor, save, spend and lose. While the rich, save, invest, then spend, yet never lose. Just something to think about.
-Best of Luck, Nicholas A. Gohr