By Glenn and Amber Schworm, Authors of The Birth of the Everyday Real Estate Investor
We all want a huge net worth.
You might not admit it right away (it’s ok, you’re modest), but the idea of seeing a collection of zeros and commas in your savings account would be enticing to just about everyone.
As nice as that sounds, making it your top financial priority is a mistake. Focusing instead on acquiring Passive Income is a much better route to sustainable success, happiness, and financial freedom.
#1 Net Worth is Stagnant
Your true goal is financial independence. It sounds so good off the tongue, say it with me… “Financial Independence”.
Financial Independence is exactly what it sounds like. The freedom to do with your money whatever you please. When focusing on a high net worth, your money sits in the bank, acquiring minimal interest. You aren’t giving yourself true financial independence if you’re limited by whatever amount of money you decided would be enough.
#2 Steady Cash Flow Means Retiring Without Worry
Retirement is full of ups and downs. You can expect to experience countless beautiful moments over the years filled with travel, time with family, and more. Unfortunately, it’s not always that way.
Unexpected expenses can come from anywhere. God forbid, your beloved dog gets hit by a car. The last thing you want to be worrying about is how big of a hit on your nest egg the veterinary bills are going to be.
#3 Offense is the Best Defense
Are any sports fans out there? When I go to a baseball game I love to see a ton of home runs. Watching one team’s offense explode makes for an entertaining evening.
When you put up 10 runs in a game… It’s hard to lose.
It’s the same thing with your finances. A constant stream of passive income is like hitting a home-run inning after inning. You continue to rack up the score, so that regardless of whatever financial scenario is pitted against you. You have the finances you need to cover your bases.
#4 You Are in Control of Your Wealth
This is the biggie. Inflation is a thing. It’s real and it’s constant. And the problem with inflation is that it is devaluing your money over time.
Ugh! So frustrating. The same $1,000 you have in the bank right now will be worth less in ten years. That doesn’t bode well for people who have put money aside and are planning to spend the next 30 years in retirement. That’s some serious loss.
By having a constant stream of passive income, you defend against inflation by having your income match the current economy.
The best way to do that, without a doubt, is through real estate.
The housing market is one area that has constantly matched the changing economy. Investing in property is putting your money into a space where it will grow over time.
Passive income through real estate means financial independence throughout retirement regardless of what life might throw your way.
About the Author
We started our career in real estate investing out of sheer desperation. We were in $80K of credit card debt and needed to make large chunks of cash to get out from under it. In 2007 we flipped our first house and made $17,000. On our second flip, we profited $33,000 in 33 days. That’s when we knew we were on to something. We always wanted to help people, so when we proved the model, we set to do just that by offering and teaching our successful formula. We wanted to show other people how to change their lives as we changed ours through Real Estate Investing. We’ve now flipped over 1000 houses and counting. We didn’t have a formal education in real estate investing, but our knowledge comes from hands-on real-life experience, the school of hard knocks, and a strong desire for a better life for ourselves and our family. We just knew there had to be more to life than a 9-5 job. We set fear aside and pursued our goals. We are so glad we pushed through the doubt, and fear, because it’s given us a life we are grateful for and proud of. Our latest book is The Birth of the Everyday Real Estate Investor.