Creating a savings plan to buy real estate & create a passive income. The first step buying real estate is to start saving your money. Yahoo finance reported in a survey, that 58% of Americans have less than $1,000 in savings. The majority of this 58% are choosing not to save their money. Financial stability & the path to buying real estate all starts with saving your money. I’ll show you two plans for saving your money. Option 1 for those of you that haven’t created the money saving habit. Option 2 is for those who are ready to become real estate Tycoons. If you follow 1 of these 2 plans, you will find yourself in a much better financial situation in a few short years. To become a real estate investor, it’s imperative that you start saving & investing your money. The plan is simple & it just takes a little discipline. Once you’ve created the habit of saving money, it’s easy. Becoming a millionaire through real estate is easy if you follow my simple 3-10 real estate Strategy where you buy just 3 homes over the next 10 years & this video will put you on that path.
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First let’s discuss the basics of creating a savings plan. For those of you who’ve never really saved money or don’t currently have a savings plan, you’ll want to start with option 1. Here’s how you’ll divide your money. 10% to charity, 10% to long term savings which we’ll call your real estate investment fund, 10% to investments like 401k, the stock market & the rest of your money, 70% is for paying bills & of course playing. If you haven’t implemented a savings plan yet, it’s imperative you start today. If you’re not able to start saving & investing 30% of your income, start saving something, anything. You can do this, you must do this.
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Option 2 is for those of you who are already saving, but you’re prepared to step it up to become a serious real estate investor so you can create passive income which will allow you to retire early. You’ll donate the 10% to a charity. I know it sounds counter intuitive to give money away when you’re working & saving so hard to buy a home, but giving money to those who are less fortunate, will make you feel good & I firmly believe you will be blessed for your kindness. Next, you’re going to split your money in half using one half for bills & etc. while investing the rest. The percentage designated for investing can be divided anyway you chose. If you think the stock market has room to run, put a larger percent there. If you’re actively trying to buy real estate, you may put 100% of that money into a real estate fund. I know a lot of you are afraid of the stock market, but for the most part, the only people who lost money are those who sold their shares during the crash. If they’d just left their money in the market & more importantly, continued to buy stock during the downturn, they would have enjoyed the huge rebound of the market. The value of my stocks fell too, BIG TIME! Yes, at the time it hurt, but I stuck to my habit of putting money into the stock market even as it was crashing & all through the downturn avoiding the temptation to sell. When the marked rallied, I made unbelievable returns & really, after just a few years, I came out WAY ahead of where I would have been had the market never crashed. Quick disclaimer, when you buy stock, do your research & only buy stock in top performing companies. Banks like to see that you have money invested. It make them feel better about loaning you money.
If you want to become a serious real estate investor, you MUST learn how to save your money. Too many people are living paycheck to paycheck, one small misfortune & they could lose everything. If you’re living like this, you’re putting yourself & everything you love at risk. It’s time to create the habit of saving which also includes not spending your precious money on things you can live without. If you’re wanting to become a serious RE investor, you’ve got to stop spending your money & start saving aggressively.
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