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Most people think (serious) money will solve all your problems.
If you're smart, it creates a ton of work/problems.
Why? Because you now have a huge responsibility to put that money to work. The financial industry is not there to help you. It's there to part you from your money, and make them rich.
Actually, that problem has been solved by index funds. Vanguard Balanced Index. Vanguard Total Stock Market Index, Vanguard Dividend Appreciation Index.
Once you understand investing is boring, it makes it a lot simpler.
Actually, that problem has been solved by index funds. Vanguard Balanced Index. Vanguard Total Stock Market Index, Vanguard Dividend Appreciation Index.
Once you understand investing is boring, it makes it a lot simpler.
Agree, VTSAX/VTIAX/VBTLX was the easy piece (still had to look at other options though). Taxes, kids college education, umbrella insurance, healthcare, and will/trust have all been a major time drain. Our kids are still little and we wanted to research the best (i.e. tax efficient) way to set them up financially. Inheritance tax can get ugly. Better to transfer money as you go and have it grow in their name, in tax sheltered accounts.
Heck, we even looked into moving to a tax free country.
But the biggest issue IS (wish I could say WAS) getting out of real estate. We even had a law suit relating to our RE investments. No doubt at some point, we'll get our properties sold and actually feel like we're retired.
Real estate is entirely another matter. When we were growing our wealth, RE worked out great for us, but boy was it a lot of work. You're always on call as a LL. It's like a part time job.
I take it you didn't use a property manager? Seems like budgeting 8-10% per property would have saved you a lot of headaches.
Rule #1 - never tell people you received a large raise (no family, friends, neighbors)
Rule #2 - don't buy any new flashy rash items (forget the boat and porsche)
Rule #3 - bank the difference in income towards all available retirement options and pay down debt
After 3-5 years if your income has stabilized that slowly start to increase consumption levels up to a tolerable level.
I agree with the above. It is wise counsel.
I've doubled my income on multiple occasions. I've felt good. I've never "treated" myself because I didn't believe in it. For me, the reward was building financial security rather than spending on a treat.
I used to live right down the street from it, lol... there are many conflicting stories behind it, but all are fairly interesting! I've been meaning to watch the movie.
And to answer the OP, yes; my income didn't suddenly go up that much, but has increased significantly (by my standards) over the last few years. Just within the last two years, it went from barely $60K to $84K, but mostly that was much-needed income. What I mean is that I was barely able to afford my rent before, and now I'm finally at the point of not living exactly paycheck-to-paycheck. So I haven't done anything exciting with the salary bump, unless you consider being able to pay ALL of my monthly expenses without overdrawing my account to be "exciting." It is kinda weird to still have something when the next check goes in, as I'd gotten used to counting down the hours just to buy groceries every 2 weeks!
I take it you didn't use a property manager? Seems like budgeting 8-10% per property would have saved you a lot of headaches.
Our properties were not very good choices for rental properties (high maintenance and high turnover) and they ended up being hours away from where we live.
But they did appreciate an amazing amount in the last decade. We talked about using a property manager, but I don't trust someone else to pick tenants. It's just way too easy for a tenant to trash your house and walk away, only to loose a few thousand in deposit.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,398 posts, read 8,634,072 times
Reputation: 16779
Quote:
Originally Posted by gizmo980
I used to live right down the street from it, lol... there are many conflicting stories behind it, but all are fairly interesting! I've been meaning to watch the movie.
And to answer the OP, yes; my income didn't suddenly go up that much, but has increased significantly (by my standards) over the last few years. Just within the last two years, it went from barely $60K to $84K, but mostly that was much-needed income. What I mean is that I was barely able to afford my rent before, and now I'm finally at the point of not living exactly paycheck-to-paycheck. So I haven't done anything exciting with the salary bump, unless you consider being able to pay ALL of my monthly expenses without overdrawing my account to be "exciting." It is kinda weird to still have something when the next check goes in, as I'd gotten used to counting down the hours just to buy groceries every 2 weeks!
Invest in more reptiles-start an albino iguana farm
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,398 posts, read 8,634,072 times
Reputation: 16779
Quote:
Originally Posted by Colorado^
Our properties were not very good choices for rental properties (high maintenance and high turnover) and they ended up being hours away from where we live.
But they did appreciate an amazing amount in the last decade. We talked about using a property manager, but I don't trust someone else to pick tenants. It's just way too easy for a tenant to trash your house and walk away, only to loose a few thousand in deposit.
You could ask the property manager to allow you final approval of tenants.
If anyone recognizes my name, I lost my job about a year ago and came on here thanking everyone for setting my finances straight and telling the new people to listen up.. its been a long hard road
Well I'm happy to report I finally landed a great job! The first year it should come close to what I was making at my last job and will almost definitely make much more in year 2-3 (salary/bonus/commissions).
My wife and I are also in the process of purchasing a rental property from a family friend for a great price, its turn key and looks to cashflow $400-$500 a month after all expenses (I can only do this because of all the money we squirreled away when I saw my job was in jeopardy and turns out didn't really need that much).
The little business I've been working on the past year looks like it'll net about $30,000 this year and I really hope the google organic searchs start to pickup and that number doubles next year. (totally passive income at this point, all dropship)
And on top of that my wife got a nice promotion and pay raise.
So we're probably looking at an increase of like $60,000-$70,000 (40%+/-) next year over when I was still working. I plan on paying off my student loans, buying more rentals, and investing a lot... But I'm wondering what its really gonna be like?
Has anyone ever switched jobs for a large increase, flipped a house for a big payday, maybe got an inheritance or something.. Whats it like? Did you really notice it? What did you do with it? How did it change things? Do you wish you did something different?
Yes, I have. It really did not change much of anything because I just squirreled the gains away in retirement investments and college savings for the kids, but I did sleep better at night.
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