Income Property Investing: 5 Financial Principles to Set Yourself Up for Financial Freedom
Your 20s are the determining years of your life. This is the only time you have left to enjoy at least some freedom before tying yourself down to a 9-5 job. Sounds scary, doesn’t it?
Luckily, if you make good use of your 20s, you can set yourself up for financial freedom and live the rest of your life comfortably on investments you made while you were younger.
Instead of wasting your crucial years, you should be learning how to invest and make money work for you so you don’t have to wait for retirement to live freely.
Income Property Investing as a Way of Securing Financial Freedom
I may be biased here but many financial advisors would agree that investing in income properties early on is one of the best ways to secure financial freedom.
The main issue I see my students struggle with is the idea that they don’t have enough capital to start. Truth be told, I bought many properties without even using my own money.
That’s where Joint Ventures and creative financing solutions come to play. A Joint Venture allows you to partner with the right people to leverage their financial assets in combination with your time, effort, and knowledge being put into the project.
On top of that, you’d be surprised how much you can achieve just by learning to be your own realtor. Check out this blog post to learn how to be your own realtor.
Overall, income property investing is a great way to acquire assets earlier in your life so you can reap the benefits as the years go by. If you’re interested in getting started as soon as possible, schedule a quick call with me and I’ll give you some pointers!
5 Financial Principles to Set Yourself Up for Financial Freedom
With all of that said, here are five financial principles that you should know in order to set yourself up on the right path:
#1 Invest Time in Financial Education
Your first step should be in the direction of learning about financial freedom and all the ways you can get there. Following financial advisors and soaking up that type of content online can help you get an idea of what you need to do and how you need to do it.
Besides general financial knowledge, it is important to understand terms such as compound interest. Thanks to compound interest, saving a small percentage now can add up to a larger sum in the future but keep in mind that compound interest can go both ways - a small debt today can turn into a massive one years from now.
#2 Create Passive Income Sources
Setting up streams of passive income is the best way to achieve financial stability. If you think about it, when you exchange time for money in a 9-5 job, you are limited to a certain amount of earnings because time is a limited resource.
However, if you set up a passive income where you don’t have to invest time and exchange it for money, you will be able to double, triple, and quadruple your earnings as years go by. Planning for passive income in your early 20s is the best thing you can do for your future self.
#3 Avoid Bad Debt
This goes without saying but a key part of securing financial freedom is avoiding bad debt. While unpredicted situations can lead to unavoidable debt, try to think smartly when borrowing and spending money.
Be careful with short-term loans and credit cards because those small debts can easily add up over time. If you fall for loans with high interest rates, you might find yourself in a debt cycle that is nearly impossible to get out of.
#4 Save to Invest
The biggest mistake people make when thinking of their financial future is saving money just to have it sit there for years. Many people are scared to invest because of the risks involved with different investments. Naturally, they don’t want to risk losing their hard-earned money.
However, even if you just let your savings sit in your bank account or under your mattress, that money will be losing value over time due to progressive inflation. Your best bet on the way to financial freedom is to save to invest rather than just save and let that money lose its value.
#5 Avoid Consumerism
Lastly, make sure to always live below your means if you’re planning on building a financially stable future. Spending more money than you can earn will undoubtedly lead to a debt cycle. With aggressive marketing and social standards these days, it is easy to fall into the trap of consumerism.
Try not to follow this trend and turn to minimalism instead. Not only is the clutter-free life more relaxing and stress-free but it also helps you save money every day. Try to cut down any useless expenses you may have and start saving up to invest as early as possible.
On the Way to Your First Income Property Investment
Getting started as early as possible is crucial to securing financial freedom in the later years of your life. Whether you have your own capital right now or you’re still saving up, it’s never too early to start.
Schedule a call with me and we’ll go over your first steps right then and there!