Tuesday, March 21, 2006

I know it is tough

With all the get rich quik schemes out there it hard to know how to become financially independant. Seems to me it's about saving money and being able to take advantage of opportunities as they present themselves. Almost any working couple in the us can save a 100 grand though a little bit of guts and determination and buy a house not for themselves but buy it to make a thousand a month in rent. Then you don't have to worry about being leveraged on it.
Let's say one income 2100 a month and the other 2100 a month. live on one income of 25200
and save one income of 25200 and guess what it only would take 4 years to have that rental property paid off. Then your collecting potentially 1000 a month. Almost half the income of one of the partners. Do another 4 years and omg almost the whole income. So it's an 8 year plan and not an 8 day plan. Let's say a couple both graduate from college and were living on practically nothing eating a lot of ramin. living on 2100 a month would definetly be an improvement. Hardest part is probably looking at the money building up so keep it out of reach, or at least easy reach. Hopefully I will retire from having to work at 32. Any comments or suggestions are appreciated always looking for people who think like me.


Blogger Matt said...

It's not as bad as you make it sound, depending on where you live.

If you know you're local market don't blow all your money on getting one house paid off from the get go - leverage your debt.

I'd be a little worried about the rental market at the moment though it's about to have alot more vacancies as condos get turned into apartment homes because they couldn't be sold fast enough.

6:22 AM  
Blogger Gunslingergregi said...

Exactly "a little worried about the rental market" So why leverage? most people I have talked to who lost a lot of money in the stock market where on margin. Why leverage when you don't have to? Build an income first, then go after some get rich quik schemes but disassociate them from your monthly cash. The problem is the leverage becomes an adiction but when do you draw the line on it. Then you cut it to close and have millions in leverage but an average income when the market goes down 10 percent and you have nowhere to go. Otherwise hopefully you could ride it out.

8:33 AM  
Anonymous Anonymous said...

$1000 a month for a $100,000 house? You're out of your mind.

A mortgage with 20% down on $300,000 house at 6% is only $1600 a month.

8:59 AM  

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