So, what is your dream? If you tell me retirement, what does retirement look like for you? Do you want to travel the world? Buy a fishing cabin? Restore an old car? To be successful in real estate, you need to know your “why”. A “why” is as individual as a fingerprint. A “why” is the fuel that will keep your motor running, when the journey to your goal actually starts to look like work. I can tell you this. If you can work while others relax, and strive towards your goal, when nobody is watching; then you can live like nobody else lives. A few years of extra work on you real estate business can lead to a lifetime of whatever the heck you want to do.
Before you can live your dream, you need to be free.
Assignment – I want you to make a freedom chart. The freedom chart is a simple visual exercise that my lovely wife Stephanie created for us. It is just a piece of graph paper taped to your refrigerator. The freedom chart shows you how close you are to financial freedom. You start by listing all of your monthly expenses, every single one of them. You also have to include things that are part of your life, like going to dinner or family activities. Make sure that you know what you spend per month. That is your target. Now let’s pretend that it costs you $5,000 per month to live as you live now. I want you to make a freedom chart with 500 blocks, one for each $100 that you need. Now, when you create passive income, you will color in the blocks. For example, if you buy a rental property that generates $400 in positive cash flow per month, you get to color in 4 blocks. It will be a stark reminder of the mountain that you have to climb. It will be hard at first, and very exciting as your graph fills in. You can make adjustments to your chart as you extinguish debt. Knocking out a mortgage takes care of a LOT of blocks for most people. Now quit wasting time reading emails and get that chart on your fridge.
I have all of my mentor students do this exercise. It is a great way to learn about what it really takes to use real estate as a retirement vehicle.
If you wish to know more about our real estate coaching program, just follow this link. Mentoring Info – PittsburghREIA.com