Onward!
Onward!
Photo credit: Maggie’s World
This is the last of our transition posts!
IMHO – where H = humble as well as honest 🙂 – it starts to get VERY exciting / challenging – interspersed with long periods of boredom 😛 – from here …
…. so, let’s make this a last-but-best post: Mark knows his path (i.e. real-estate and small businesses). How do we help him on his way? C’mon, be creative!
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Onward! That reminds me of my former co-worker. He is a happy go lucky guy who is very smart and he is currently in his 3rd or 4th retirement now. How that works? Work really hard a few years, save some and spend carefully, hit a jackpot with a start up and retire temporarily. I might adopt some hybrid approach in the near future, hopefully. Too much of either one; work or retirement, is not healthy.
We have just concluded a bunch of MM101 exercises. Most of them are really helpful; I’m particularly fond of the 20% Rule and the 25% Income Rule. Maybe because I like numbers and I got an elephant stamp out of that exercise with my old home. I do need to rework it for my new home. Nevertheless, the other MM101 exercises are equally important. It is MM101 principles that got me here at this point.
Like a few of the 7 millionaires in training, I started some MM201 activities like converting my old home into a rental property and making attempts to launch a mall business. The rental is not cash flowing a whole lot and I’ve made some significant improvements on the property. The way I look it is the experience that I’ll gain from this activity. It will help me in my future real estate acquisitions too.
Let’s review my original number and date here. It is $5 million in 10 years and the required compound growth rate is about 40%. I should be looking at:
Real-Estate together with Stocks and Small Businesses
So far, I’ve started on a small rental. I’ll be launching a small business soon investing in Tax Liens and that will bring in more real estate exposure. I did hire an accountant to help me draft out a business development plan and I’m happy with the outcome. The next steps are flawless execution according to the plan. How do I do so far? I must say, I’m not moving forward enough! My current obstacles are my home, assembling furniture and furnishing the new home;Â and a very busy social calendar – trips, concerts, parties. It is time to make a choice. I can still do it all but there will be some sacrifices.
Mark, I think you’re off to a good start by converting your house to a rental. I know how daunting it can be faced with the bug to furnish your new place. We’ve have the same challenge since we converted our first home to a rental and bought our farm last year.
We decided to cushion the spending blow(and cut out as much temptation as possible to go wild furnishing the new place) by giving ourselves a “home improvement” monthly allowance. This is money that can be used to both do renovations with(some have to be saved up for however!) or used to purchase needed furniture(we never bought any furniture in the 7 years we’ve been together, most of the stuff we own are old things that were passed down, picked up at yard sales, or dirt cheap and low quality, etc…but we owned nothing nice).
We figured that the whole process of both getting our new place finally furnished the way we desired as well a completing the needed renovations(which will increase the value of our property tremendously)will be spread out over a few years so that our money can mainly work for us right now to achieve our number.
We felt like if we just dove in and used all of our monthly savings or “war chest” money, sure we may have a beautifully finished and furnished home, but what would that cost us in getting to our number now?!
Good luck!