How We're Like Lotto Players and Athletes Who Go BankruptWell Jonathan, most of us don't have a million dollars to worry about! Yes, but our mentality is the same! Most of us work hard to earn money (just like athletes and lotto players). And for what? To enjoy it. Once we get it, we pay the bills, the mortgage or rent, our monthly pass to 24 Hour Fitness we never use, and then spend what we have left on fun - like dinner outings, vacations, and new clothes. So, in sum, we work for money. The secret of thinking like a true millionaire is to ask yourself: how to make your money work for you, or how to make your money MULTIPLY. In a word, investing.
How to Make My Money Multiply?How could you make your money multiply?? The most popular ways people actually make their money multiply today is either the stock market or real estate. Think about it. With stocks, you put $2,000 in and hope the market goes up. You could end up with $3,000. You could also end up with $1,000. Or you could let it sit for a few decades and hope it goes up. Stocks are a much higher risk investment, since we have no control in what our stocks and companies do. As we've seen, the stock market can be great one day, and crash the next.
Can Real Estate Ever Be a Safe Investment?Real estate can be the same way, but it doesn't have to be. With real estate, you control your investment. Most of the people who experienced a crash along with their real estate investments were those who either bought in hopes that their home(s) would appreciate, or who refinanced their mortgages so much that they were upside down - their payments were higher than the value of their homes. But smart investors made sure their investments worked by buying something that worked - cheaper properties with strong area rents. As the real estate markets crashed, rents only went higher (since many people were foreclosing but still needed a place to live), and these investors were safe. And if the market had gone up, great. They have a strategy for every market.
What are You Doing With Your Money?What are you doing with your money? How is your money working for you? Do you have it locked into a 3% CD? Or 1% savings account? The are homes around the Denver area making 20% - 30% return on investment right now. If you'd like to know more, give me a call or shoot me an email. If you don't like real estate or getting your hands dirty, you can still get your part in the mix by lending your money for a fixed rate of return.
Want to Learn More About Real Estate Investing? 7 Types of Real Estate Investing