Ever since learning about compound interest and reading books like Rich Dad Poor Dad, my outlook on money forever changed. And If you view money the same way, you can pretty much guarantee you’ll never run out of money and you can make it generate cashflow to last a lifetime. Enjoy!
Here’s what it is. Let’s say I have $10,000 in my account. I don’t see that as just $10,000…instead, I see that as $700 per year, for life. Or almost $60 per month that I can live off of for as long as I’m alive.
Now everything I do and think about is calculated in future monthly profits. So that $20,000 car is really worth $116 per month in profit. If I’m making $50,000 per month, I don’t see that as $50,000 per month…that’s $291 per month for life, PER MONTH. Basically one month of that will pay for a lifetime of my Toyota Prius lease payment without me ever having to come out of pocket.
For me, I might get about a 10% return by investing in real estate. Inflation eats away about 3% per year, leaving me with a net 7% return on my invested money. Meaning that for every $100 I invest in real estate, I’ll make $7 per year in profit, while still having my original $100.
It’s even more impressive if you decide to reinvest your money. If you just decided to re-invest the 7% income that $10,000 generates, over 25 years that 10,000 will have grown to almost $55,000 at the same 7% return.
Now that you see it, it’s hard to view things the same way. I can look at almost anything and imagine what that would generate me monthly. It’s pretty ridiculous.
So now when I see something that costs $1000…I think, it’s that really worth $70 per year for life? Or is that really worth almost $5500 in future money? And usually for me the answer is no, I’d rather the $70 per year and just continue growing that $70 per year until I can afford whatever costs $1000 without ever having to come out of pocket. My investments should be able to cover anything I want to buy, and at that point, you know you’ve made it.
Because people always want to know what to invest in, I invest in rental property where a cash on cash return would generate about a 10% return, and I also invest in an SP500 index fund where it has historically returned about a 7.2% return adjusted for inflation. There are plenty of investments out there to chose from depending on your risk tolerance and how much you want to make…. Bitconnect ;)
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
For business inquiries, you can reach me at GrahamStephanBusiness@gmail.com
Suggested reading:
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
_____________________
0 facebook:
Post a Comment