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OP, how old are you? Your lack of 401k worries me. If I squint my eyes and pretend that your $72k property is a 401k, it's not as troublesome. But 401k's don't get leaky roofs or mold or a busted AC unit or tenants that decide to stop paying rent. You make $800 gross from the property; what's the net?froglet posted:Can't comment on the retirement front since I'm not American, but you may be interested in the concept of financial independence. Do this. You don't have to take it to the extreme that some people do, but just having the idea in your head at all will change the way you approach money and saving. Money is a tool to buy your freedom. Ultimately, you should want to be able to live without money earned through labor, if you want. This isn't to say that you have to stop working, but that you could if you wanted. Or work less. Or do something that pays very little, but brings you joy. If your goal is financial freedom, you will see that you're not as set as you think. This isn't a criticism in any way, it's just a statement to light a fire under your butt. Don't start feeling comfortable because your labor allows you to live and have a little left over every week. What kind of life do you want to live, and how much would it cost? If you're already living your ideal life, you'll need $28k a year or so. If you had assets generating $28k a year, you would not ever need to work again. That could mean $690k in assets, using the 4% rule, or some combination of assets plus income generating property. If that property is earning you $400 a month, then you would need about $23k a year instead, plus $580k in other assets. If you had 6 properties earning $400 a month, you'd be set. These are all just general guidelines, you can play with the cost of living, or side income streams to find different asset goals, but the point is to start thinking about money/assets as things that generate money for you to meet whatever your goal is. If money wasn't an object, what would you do?
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# ¿ Jan 9, 2016 18:35 |
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# ¿ May 16, 2024 08:24 |