We Need to Kill the Idea of a “Starter Home”
In today's newsletter.
We Need to Kill the Idea of a “Starter Home”
Making money decisions based on what society expects will crush your finances.
When my wife and I bought our house in 2016, we had a family BBQ to celebrate. One of our relatives walked into the backyard, and before he even said hello, he told us that our house was “cute” and declared that we “won’t be here long.” The implication was clear; in his opinion, my wife and I make too much money to live in this house for more than a few years.
We live in what many people would describe as a “Starter-home;” A 3-bedroom, 2-bathroom house.
The idea of a starter home is that you use it to get you to get a foothold in the local real estate market. Then over time, you continue trading up for bigger homes until you have your “dream house.” The concept has kept millions of people who make a lot of money from achieving financial freedom.
It’s time to kill the idea of a starter home.
Investing = Financial Time Travel
Saving and investing money simple means sending money to your future self.
Saving money implicitly means choosing not to spend money today. Your current self is sending money to your future self. If you save $100 today, that means at some point in the future, maybe one month from now, maybe 50 years from now, your future self will have that $100 plus whatever interest you have built up along the way.?
Time travel does exist, but it has two rules.?
Now that we are clear on the rules of financial time travel, you need to think about how far into the future you want to send your money. This is the part where you need to understand the difference between?saving?your money and?investing?your money.
If you want to send your money into the not-too-distant future, then you need to save your money. Money that you might need any time in the next few weeks or even the next few years needs to be saved, not invested.?
领英推荐
Investing with Leverage Is like Cooking with a Really Sharp knife
Certain tools should be kept in the hands of professionals.
I learned this lesson the hard way when I bought my first industrial-quality chef's knife.
Do I need what amounts to a sword to chop onions and carrots?
No.
Did I almost cut my finger off several times and stain my cutting board with blood?
Yes.
A knife that sharp only needs to be wielded by a professional who;
When it comes to investing, using leverage is a lot like using an insanely sharp chef’s knife; it looks good on TV, but you’ll probably end up cutting a finger off.
Join The 30-Day Money Mindset Challenge?
Receive a daily prompt to challenge you to reflect and take specific actions to improve your financial life and hit the reset button on your relationship with money.?
This newsletter is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.