Behind The Shine | 12/30/2022

    Behind The Shine 12/30/2022

    Consider how your portfolio can be perfectly balanced, as all things should be. 

    Consider yourself Thanos, and ask, “How could this all fall apart? And how can I create the amount of balance that would prevent that from happening?” 

    It could be seasonality with short-term rentals. It could be having a lot of money in the bank and then spending it all on a deal. 

    Poke holes in your own portfolio. Make it a poke-folio.  

    Look at ways it could fall apart and then be proactive about trying to prevent that as opposed to just living in fear, anxiety, and worry about what could happen. 

    Create a plan for what you’ll do if it does.

    People are always asking me what I would do if I was just getting started in real estate.

    My first step would be to…

    Do more than just invest in real estate.

    Diversify the way that your income is coming in.

    Establish a much more solid base to scale horizontally before vertically.

    Look for an industry where you can make money and still be involved in real estate.

    This could be being an agent, a loan officer, working for a construction company, being a contractor, consulting, working for a 1031 company, being a CPA.

    Anything you could do where you could help other people in real estate while helping yourself.

    This will allow you to diversify your income while learning more about the real estate industry.

    With the New Year only a couple days away, here are some questions to help you stress test your life. 

    What are your challenges? Write them down and think through solutions for them. 

    You’ll quickly see avenues that you didn’t think about. 

    • What would I do if I lost my job? 
    • What would I do if I lost my spouse? 
    • What would I do if I lost my money? 
    • What would I do if the investments went bad? 
    • What would I do if we didn’t have food I could go get at the grocery store? 

    This stuff is scary and can cause some anxiety, but coming up with solutions will help build your confidence and help you be prepared for situations that we don’t know could be coming.

    We’ve been blessed in this country to have a long run of a very, very healthy economy, but nothing’s guaranteed. 

    If we learned anything from COVID, it was that. 

    So take some time to stress test your life, your portfolio, and your goals and make sure that you feel good about them if everything doesn’t go perfectly.

    There’s no doubt that the last two years have been financially stressful for Americans. With many professionals speculating that there is a recession in coming, it is essential you are aware of your financial plans for the coming year.

    Not having a plan often leads to asking yourself the questions we covered in the paragraph above. In this instance, I urge you to make the time to set a plan for the upcoming year.

    We have written an article to help you find out what Americans are doing to prepare for a possible recession, read that here: Planning for 2023’s New Year’s Financial Resolutions

    Are you interested in joining a league of like-minded people committed to saving money and developing financial independence? Keep an eye out for David’s next educational product, the Spartan League. “Text ‘Sparta’ to 59559 for more info”

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