To Spend or to Save Passive Income from Real Estate?

[Abby Robinson]

Hello Fellow BP Members!  I was hoping I could gain some insight from some experienced investors about some conflicting ideas in my head about what to do with passive income earned on real estate investments.  I was listening to a BP podcast this morning and one of the hosts made a comment about how he didn't start to change his spending habits until his passive income started to increase (spending on wants vs. needs... buying a bigger personal residence, buying a nicer car, going on better vacations).  Everything I've heard and read about getting your real estate investment portfolio going has stated that you should save your passive income for your next real estate investment.  So when does it make sense to start spending your passive income on yourself, particularly your "wants" in life?  To piggyback off that, I'd love any book recommendations regarding the accounting of real estate investments, specifically when and how you should pay yourself, based on what type of entity you have structured for your real estate investments.  I haven't made my first real estate purchase quite yet, but I'm currently saving to do so by the end of this year.  My goal is to get a 5-year timeline of when I can start reaping the benefits of having additional, spendable income.  Thanks for any and all comments, BP!