As our credit cards reach their limit during the holidays, I'm reminded of the often-insane American lifestyle: working ourselves to the bone, only to spend it all.
The headline "lottery winner blows entire jackpot" is familiar, but for them, it was "easy come, easy go." For the rest of us, it's much sadder: working our entire lives and having nothing to show for it.
But man, is it easy to spend. Big City Family living has a knack for draining bank balances like some kind of money-sucking monster.
However, if all the money gets spent, how are any of us supposed to get ahead?
I apologize for being a bit repetitive, but it's worth emphasizing: spend on assets (then lattes ☕️) Here's our formula: we prioritize buying assets (real property) first, letting them create wealth through rentals, loan paydown, and appreciation. And then we do it again.
As long as you invest in income-producing assets first, feel free to buy whatever you want. Get your daughter that Barbie Dream House because at the beginning of the month, the accounts are going to get topped up with rental income.
Reading "Rich Dad, Poor Dad" changed my life, not because it turned me onto real estate, but because real estate was always a means to an end — enough "money by mail" to never work again.
And here's where big city living pays off: $4,200 is the monthly rent of one well-located property. The game isn't "buy a house, and after 30 years, I will own a paid-off house." The game is "after 30 years, I will own 10 mostly paid-off houses and enough money by mail to retire on."
Rates are dropping. We think 2023 real estate is going to pop.
