Category: Uncategorized

I lolled. Seriously? Now I will say there is one caveat to this. Cash can be king, but cash is not always king.

Why Cash Is Not Always King

Let me explain. Here is why cash is not always king. Put cash in your low yield savings account or better yet put it under your mattress and guess what happens? It will sit there and do nothing for you. It will be finite. It will not grow to produce more cash for you. At some point of spending, it will all be gone. It is the single worst thing you can do with your money. The second worst thing you could do would be to dig a hole and put it in the backyard!

Why Cash Can Be King

Now here is the caveat. Cash can be king. Why? Having a strong cash position can set you up in a good spot to invest in cash producing assets. If done right, your cash will multiply into more and more fruitful cash producing assets. Welcome to the idea of planting money trees and letting them sprout to fruitful income producing assets.

This is a powerful concept that is critical for you to understand. Cash is only king while in a liquid account until you identify another asset to buy. There are a few different ways to keep your capital liquid. I will speak to what I am currently doing, but there are many other ways to do this. Do your research to determine what will work best for you.

Option 1 – Liquid Index Fund Investing

Before detailing this one out, I want to point out this has high depending on market conditions. If you want to have liquid assets, index funds are definitely an option. The risk of having your “cash” reserves in an index fund will follow the market volatility. This could be a good or bad thing for you. If the market goes up, your money will grow and you will have more liquid capital to pull out. If the market goes down, your money will decrease and you will have less capital to invest.

Another thing to consider are the tax implications. Having your liquid assets in Index Funds could create unintended capital gains/losses. I have an article detailing out how I did some tax loss harvesting last year. Again, do your research on this before going down this path. High level, if the market went down and you sold some of your index funds, you would be able to write off losses. There are certain restrictions around it, but that is the high level gist. If the market went up, you would have to harvest gains when selling. Speak with a CPA if you want to get professional advice as I am not a CPA.

Option 2 – High Yield Savings Account

If you want to hold a true cash position, ensure it is in a High Yield Savings Account (HYSA). Don’t let it sit in an account earning you .03%. Don’t know what your account is earning, call your bank. A lot of the banks who have very bad rates will make it difficult for you to find out what rate you are earning. I made that mistake for five years, please don’t make it yourself. I have an entire article dedicated to this subject. I was able to increase the interest I was earning by 183x by making a simple switch. It took less than 10 minutes. Click the link here to read the full thing.

After some further explanation, what are your thoughts on how you view cash? Do you feel it is king?

Key Takeaways:

• Cash can be king. Cash can not be king as well. It all depends on how you are planning to use it.
• If you are sitting on literal cash, make sure it is in a High Yield Savings Account. I increased what I was earning by 183x by making a simple switch. Do your research on the different HYSA’s out there before switching.
• Always have a plan for your liquid assets if your goals are to create horizontal income streams.

What do most individuals do on vacation? Take vacation! Duhhhh!!! What a dumb question, why would you ask something so stupid TheYoungRetireeBy33!

WELL NOT THIS GUY!!! You have two choices in the life you live. You can do what everyone else is doing and get similar results, you know the classic Choice 1:

• Work till your 65
• Save a little money here and there with hopes of having enough to not run out after retirement
• Continue to have lifestyle creep, buy bigger homes and fancier cars as your income increases (hey now, I deserve it!)

Or…. you have Choice 2:

• Live a life with a growth mindset understanding the world we live in is full of abundance
• Put in the time and effort today that will set yourself up to be successful in the next 1, 2, 3, 4, and 5+ years

Here is the decision I have made. Instead of taking an actual vacation and traveling around the world or country, I decided to take massive action and research the market I live in. You can’t change where you are going to be in 5 years if you don’t change your actions today! Vacation? What vacation? I haven’t earned the right to take time off not dedicated to my overarching goals.

What I Decided to Do on My Vacation:
After researching all day Monday, Tuesday, and Wednesday of my vacation, I went to checkout 10 properties on Thursday morning. I targeted a specific area based off the detailed research I did earlier in the week.

Friday morning, I put in 6 offers on 6 of the 10 properties I liked. Each offer included three different options for the seller. The lowest offer was all cash. The middle offer was a regular 20% conventional loan. The highest offer for seller financing.

Four of the six offers got declined with no counter. Oh well. On to the next ones. I received counter offers for the other two. It was then time to begin the negotiation!

After much negotiation back and forth, I have my first true investment property under contract (I do house hack my current home so not sure if that counts as 1 or not, will have an entire separate post about house hacking soon)! I was excited to take massive action, set a target of getting a good deal under contract while I was on “vacation”, and learning a new world that I had not previously understood.

I have much more information that will be coming in future posts about this property and what I expect the numbers to be. For now, here is are the main points I want others to take away.

Key Takeaways:

• Doing what others have done will typically lead you to the same end results. If you want to be lazy and kick it binge watching tv on the weekends, make sure you are prepared to not make progress towards any sort of goals.
• You must be willing to put in the time and effort now to get where you want to go. The last three weekends I have been up at 6am with a clear plan of what I was going to accomplish during my morning. Most 27-year old’s were still asleep probably still drunk from going out the night before.
• A driven individual with no plan might as well not be driven. Drive is only one portion of the equation. If you don’t know what you want to do or what your goals are, focus on that first. You can’t get to where you want to go if you don’t know the end goal.

#BiggerPockets #RealEstate#RealEstateInvesting #RentalProperty#Blog #Money #Mindset #Mission#YRB33 #Investing #DFC#DebtFreeCommunity#FinancialIndependence #Finances#Motivation #SideHustle #Savings#Retire #EarlyRetirement#FinanciallyFree #Retirement#Finances #PersonalFinance #GoBig

Have you ever made a significant amount of money for the hours dedicated to your profession? What if I told you there was a way to make more than you have ever made in your life? Most would be sceptical, but this is no get rich quick scheme. Now let me ask you a few questions about a normal expense I recently had. Getting your oil changed.

This is a common expense every car owner will have to ensure your car doesn’t break down. Most individuals would simply go to their local oil change shop by their home and pay for whatever the cost is of the oil change. Seems the logical thing to do. You need an oil change for your car, so why waste any time. Get in your car and head to the shop. This seems logical, but this is not optimized for your personal finances.

What if I told you there was a way to quickly save money by doing a simple google search for coupons in your local area for oil changes? Upon a simple search that took less than 5 minutes on my phone, I was able to find a $20 off coupon for Jiffy Lube.

Many would argue I didn’t make any money in this scenario, but I would challenge your thinking. I recently read a really interesting Instagram graphic someone posted that said something along the lines of “If I have a coupon for $200 off spending $500 or more at a Macy’s, how much did I save?”. This is something that is extremely interesting to think about. Have you ever found yourself getting a coupon to a store and you think to yourself, dang I am going to save so much money? Are you really saving money though if it wasn’t something you actually needed in the first place? Did you really save money? Or just spent money on things you didn’t actually need in the first place?

For this particular type of spending, which I would consider an expense of car ownership, it is something that you must do in order to keep your car running. For that reason I have the mindset that any spending that is absolutely necessary would be saving money versus spending money you don’t need to.

Now let’s calculate how much money I just made on an hourly basis!

It took me 5 minutes to find a $20 coupon for the oil change. There are 12 5 minute intervals in 1 hour. If you multiply $20 (coupon savings after searching for 5 minutes) * 12 (5 minute intervals in 1 hour) = $240/hr.

I would say this was a good value for my time!! I am sure there are a lot of people who would argue that I didn’t actually make $240/hr and I am fine with that. Just keep paying full price for your next oil change 🙂