Save Thousands For Your Retirement With Someone Else's Money
I am the big sister to two kid brothers. Like any older sister, I worry about my brothers, even now. Most of all, I worry about their futures. The one closest to my age is the one I worry about the most lately.
My brother is very gifted at things that require the use of his hands, a lot of patience, and great attention to detail. He's been a carpenter, a chef, and has also rebuilt cars. He's amazing at all of it. However, he is not so skilled when it comes to managing his finances.
Since he's still young (in his early 30s), he feels there's lots of time to work and make money to put away for his retirement. I wish he didn't think this way. The government may not take care of us when we're older, so the time to start saving for your retirement is now.
As his big sister, I decided to help him out by making a plan. My brother has three cars, and he certainly doesn't need all three. I convinced him that one of the cars should be sold. The money he makes from the sale can be put into a savings account, and he'll also be able to start saving about $500 a month.
Side jobs are great source of extra income and carpenters are always in demand. Building fences and helping with kitchen renovations could also add thousands of dollars into his savings in a short period of time. The savings can then be used as a down payment to buy a fixer-upper which could probably be purchased for around $200,000.
For a couple of years, he can live there while fixing it up and continuing to save more money. Then, he will turn that house into a rental property, renting it out for about $1,400/month. He then buys and moves into a new property that he will call home.
So what happens in 25 years? Let's find out.
If his repairs add $25,000 in value and the house appreciates by 4% every year, then in 25 years it'll be worth approximately $576,743. That means that his original investment has almost tripled in 25 years! Imagine- $1,900 a month of someone else's money going toward his retirement ($576,000 divided by 25 years divided by 12 months)!
Even if the property doesn't appreciate by 4% each year (which has historically been the average), his tenants will have paid off his mortgage in 25 years. And, he will still be able to enjoy profits from the rental income each month (his positive cashflow from this one property could increase to as much as $2,350 each month if rent and expenses increase 4% each year for the next 25 years as well).
Plus, he will also have his main residence paid off by then, giving him over $1 Million in property for his retirement. What an easy way to get someone else to pay for a big part of his retirement!
So are you wondering what happened to my brother? He followed my plan, sold one of his cars, and now he's doing side jobs and saving up for a nice down payment for his first investment property. - 23314
My brother is very gifted at things that require the use of his hands, a lot of patience, and great attention to detail. He's been a carpenter, a chef, and has also rebuilt cars. He's amazing at all of it. However, he is not so skilled when it comes to managing his finances.
Since he's still young (in his early 30s), he feels there's lots of time to work and make money to put away for his retirement. I wish he didn't think this way. The government may not take care of us when we're older, so the time to start saving for your retirement is now.
As his big sister, I decided to help him out by making a plan. My brother has three cars, and he certainly doesn't need all three. I convinced him that one of the cars should be sold. The money he makes from the sale can be put into a savings account, and he'll also be able to start saving about $500 a month.
Side jobs are great source of extra income and carpenters are always in demand. Building fences and helping with kitchen renovations could also add thousands of dollars into his savings in a short period of time. The savings can then be used as a down payment to buy a fixer-upper which could probably be purchased for around $200,000.
For a couple of years, he can live there while fixing it up and continuing to save more money. Then, he will turn that house into a rental property, renting it out for about $1,400/month. He then buys and moves into a new property that he will call home.
So what happens in 25 years? Let's find out.
If his repairs add $25,000 in value and the house appreciates by 4% every year, then in 25 years it'll be worth approximately $576,743. That means that his original investment has almost tripled in 25 years! Imagine- $1,900 a month of someone else's money going toward his retirement ($576,000 divided by 25 years divided by 12 months)!
Even if the property doesn't appreciate by 4% each year (which has historically been the average), his tenants will have paid off his mortgage in 25 years. And, he will still be able to enjoy profits from the rental income each month (his positive cashflow from this one property could increase to as much as $2,350 each month if rent and expenses increase 4% each year for the next 25 years as well).
Plus, he will also have his main residence paid off by then, giving him over $1 Million in property for his retirement. What an easy way to get someone else to pay for a big part of his retirement!
So are you wondering what happened to my brother? He followed my plan, sold one of his cars, and now he's doing side jobs and saving up for a nice down payment for his first investment property. - 23314
About the Author:
Learn How to Retire with Real Estate with Julie's free Real Estate Investing Starter Tips Guide. Learn how to create financial freedom, positive cashflow and massive wealth with tips like: How to find quality real estate, finding and keeping great tenants, and easy ways to make more money with real estate.
posted by Mr. Forex at
12:23 AM
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