OfflineThe first thing I explain to people just starting out in real estate is that they must find a reason why they would want to go to the trouble to buy, fix, and rent out real estate. I mean, it seems like a lot of work! The truth is that it is a lot of work--for a short period of time. All of my friends ever said when I told them they should buy real estate right now was "no way-look at what you have given up in life to buy real estate-it can't be worth it." Now that I am retired I have all of my time back. They are still going to work every morning, they are still planning their lives around the weekend. One of the biggest reasons to retire early is so you can run around during the week and PEOPLE don't get in the way because they are at work! I retired 32 years early. Most people can't even fit that idea into their reality. Now I was able to become "job optional" after 2 years in this business. That means I had the cashflow to quit my job but, I chose to continue working for 1 more year. I set a goal the day I bought my very first property which was November 10th 2005 that I would be retired in 3 years. I accomplished that goal 3 days early. Man it feels great!
Now lets talk about some of the things you need to get out of the way so that retiring early becomes a possibility very quickly.
Make adjustments to your current budget by eliminating any monthly payments that are costing you money that you don't need. For example-do you really need 450 TV channels? I hate TV-it will suck the life out of you and it costs you money. What about that furniture you had to have and now you are making monthly payments on? Sell it. Are you driving a nicer car than you can truly afford? Get rid of it. Starbucks every morning? Start making it yourself. These things add up. REMEMBER YOU ARE ONLY GIVING THEM UP IN THE SHORT TERM,ONCE YOU GET FREE YOU CAN HAVE THEM BACK TIMES 10!!!
By reducing your monthly payments, that will accomplish 2 things.
1. It lowers your monthly "break even" number, which will reduce the amount of time it takes to replace those expenses with cashflow properties.
2. It helps free up money to put towards things like credit cards so you can go full throttle into "GET OUT OF DEBT MODE".
One very important note: I see people all of the time who get started in real estate and they just start spending money carelessly and they start buying expensive cars, clothes, furniture-everything. Their response is "who cares I will be making so much money in real estate that I will be able to pay it back super fast" In some cases they haven't even done one deal yet! In other cases they have done just a handful of deals. THAT IS VERY, VERY DANGEROUS THINKING! Do not put the cart before the horse. Build the real estate business first!
These things may sound tough but imagine this--Imagine waking up every morning for the rest of your life when you want to. Imagine having all of your time back. It is possible. Stay focused and it will really happen for you. Stay tuned for part 3 where I show you the perfect strategy to build wealth quickly. Part 3 will blow your mind!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
This is GREAT advise! It's very easy to build up debt and much harder to eliminate it. I speak from experience (sorry to say). When I lost my job last March the first thing I did was dump the Dish! Now that payment goes toward paying off other debt so I can start building the "nest egg"!
I appreciate your taking the time to give us all this information. Keep it comin'!
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
Can't wait for part 3!!
I am right there with ya. I have been telling my friends, family, and co-workers to cut back on spending and start saving FOR YEARS!!! But do they listen?....nope! They continue to live pay check to pay check...
They say...but I have to have my latte, or my $5 pack of smokes...ect. They all have NEW cars too. I have said at least a million times DO NOT buy NEW cars!!!!!! ....do they listen?...of coarse not!
Don't Wish the Past, Create the Future! - DH
This makes so much sense. We spend "stupid" money on "stupid" things!!! I personally, spend, an avg total of $6 daily on my coffees!!! That's $2190 a year!!! (Love the caffeine rush!) That's rediculous, I could use that money monthly towards my bills, $182 to be exact! Boy, that hurts once I see it written in front of my face!
Thanks Cbrpower for the epiphany! I am actually going to sit down an write down how much money I "waste" on things for the year and see how much $$ I could of actually saved!!
Oh boy, I know this is going to hurt!
"ALWAYS THINKING OUTSIDE OF THE BOX"
I love this! It's sooo true what you say about sucking it up now to reap the benefits in a few years. I made the decision to sit down and do a financial statement a little less than a year ago. I made out a budget and took out any unnessary luxuries. Wine club, happy hours, cable for the guest bedroom (we only have guest a couple of times a year for Pete's sake!) starbucks, and instant gratification items like a top here, shoes there, a candle or decorative flippin pillows (I mean come on...did I really NEED these things or just WANT it?)
My husband was on board and we were cool with it because we started seeing results immediately. We started putting this free'd up money towards bad debt (credit cards)and felt the burden lighten each month. We realize now the difference between good debt and bad debt and the difference between how the rich think and the poor and middle class do. In the mean time I will keep plugging away to our early retirement. FYI though.... I TRUELY couldn't have taken the first steps without your help and the inspiration from you and others on this site! XOXO, Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
Looking forward to #3!!!
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
It was only a couple months ago when I started closely monitoring where all the money was going. The truth hurts but its now starting to heal. We cut back on lots of stuff as far as going out and regular bills. My favorite cutback was the phone bill, I started looking for a less expensive provider then came across "MagicJack" im not sure if anyone else here nows about it but its great its 19.95 for the whole year instead of the 30.00 monthly bill thats 340.00 a year I save. LoL I sound like Im trying to sell this thing but reality it sells itself. it uses the internet connection so if you have internet I think its the way to go. its free long distance US, caller id, voicemail.etc...if anyone is looking to cut there phone bill and has fast speed internet all ready i will vouch for magicjack. BTW CBR cant wait for part 3.
in cutting there phone bill http://www.magicjack.com/2/?mid=304185
The magic jack is good, I have one myself. But there are some draw backs. If you're navigating on a webpage at the same time your on the phone it echoes on your end and cuts out so the other party can't hear you talking. It only works while your computer is on. It also only works if you have high speed internet, no dial up. But on the other hand it's a great value and can be used as your business phone, because you can take it all over the U.S. and it will work anywhere with your internet connection.
CBR,
Thanks for part 2, looking forward to part 3!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
You know you don't have to convince me!! Said it before,and I'll say it again. I truly value your opinion.....Jan
I know what you are referring to because I think thats the same thing that happened when I had Vonage but fortunately not for the magicjack maybe it has something to do with internet provider because now i have verizon fios. You do have to have the high speed internet I figured more users have high speed than dial up. You are right about great value...that brings us back to CBRs part 2 topic putting money to good use. thanks for the reply Elena I have also visited your page and find you to be very welcoming/helpful and truly inspirational..
Ron
I thought I had cut down on all my excessive spending last year, and I've always tried to live simply - but this post is a great reminder to sit down again and take a new look at where my money goes. There is a BIG difference between 'want' and 'need'......thanks!
Laura
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
CBR, as Laura says, it is always good to revisit your budget to ensure that we are on track and also to evaluate other ways we could cut back. Great info CBR, a great reminder for all of us to stay in line with our spending. Especially educational to our younger DG family member who could make this a realty. A suggestion; that we should include Part 2 close to Part 1 on the general site for easy access especially for new members. I had no idea that Part 2 was up until Rina's suggested link. Thanks Rina for looking out for us.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
You're welcome, Sandra.
It is now 12/1/08 and CBR just posted Part 3 this morning. Thought I might as wll go ahead and put a link in here.
(It's another 2Bcontinued, packed full of great stuff!)
http://www.deangraziosi.com/node/12769
Rina
P.S. Part 2 comment. I used to have TOO much of this mentality. Cut, cut, cut expenses. I was a PRO at it! But I was missing half of the equation. I finally realized that the people who had the most were not the ones who MADE more necessarily, NOR the ones that were totally thrifty (ME). It was the ones who had BOTH. INCREASE your income AND spend wisely! I love the fact that I can now hand my kids some gas or spending money money without flinching. We all sacrificed for a long time, and now, thanks to Dean and others, we can reap the rewards. Sometimes it just takes a push from the right person to see things differently. lol
So, thanks CBR, for putting things into perspective.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Another great post! I have actually gathered all expenses to start going through them to eliminate and apply where need be. Thanks!
Thanks for the Advice.
Wayne
"Can't Stop, Won't Stop"
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
What a feeling huh! !!!!! I can feel it in my grasp......the best part he shows us exactly how he did it!!! What's stopping us from taking every step he took? ??...and is STILL TAKING... I know he has my ATTENTION!!!
JAY
Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...
this DG family is awesome! everyone sharing their knowledge and giving advice for everyone to learn.... for free!!!
I'm heading over to read part 3 now...
Val
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
thanks
matt this is awesome !!!!!!!!!!!!!!!!!!!
matt this is awesome !!!!!!!!!!!!!!!!!!!
You can click 'cbrpower', Matts username which will take you to his profile page, there click 'track' button at top and look for the part 1 & 3 in his posts
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
http://www.deangraziosi.com/node/12012 Part 1
http://www.deangraziosi.com/node/12769 Part 3
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
thank you soo much. have a great day !!!!!
walt
This cutting starbucks and other luxury items is what David Bach calls your latte factor. This help me get out of credit card debt and to now have an excellent credit rating. It works!! Now to just get going in REI and retire! Love Chicago and did not know that is where you are. I used to live a few hours south. Maybe we will meet sometime in the future.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
This cutting starbucks and other luxury items is what David Bach calls your latte factor. This helped me get out of credit card debt and to now have an excellent credit rating. It works!! Now to just get going in REI and retire! Love Chicago and did not know that is where you are. I used to live a few hours south. Maybe we will meet sometime in the future.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.