Sceptical Wife, Who Asked for Reassurance Before Investing

[Russell Redford]

I am very excited to get started investing. I currently am in a job I dislike, with little opportunities for advancement. We dont want me to work until I'm dead. I've done my due diligence, but my wife is very sceptical.

We have heard a lot of advertisements from "real estate gurus" who sell the dream of financial freedom to only ask you to pay thousands of dollars for their secret formula. It's made her very sceptical of real estate investing. I can't blame her. We are living paycheck to paycheck with 3 small kids.

I won't do this without her support, and she is trying to get a clear picture of realistic possibilities. She asked me to post these questions.

1: Is it really possible to replace someone's income with real estate investing? (We dont expect to get rich quick, but how many of you have been able to quit your job after building your business for a few years.

2: Once your business replaces your job, how is your work life balance? The most important thing to us is spending time as a family, and dont want to commit to a life style that requires 60+ work hours a week.

[Alvin Sylvain]

Originally posted by @Russell Redford:

I am very excited to get started investing. I currently am in a job I dislike, with little opportunities for advancement. We dont want me to work until I'm dead. I've done my due diligence, but my wife is very sceptical.

We have heard a lot of advertisements from "real estate gurus" who sell the dream of financial freedom to only ask you to pay thousands of dollars for their secret formula. It's made her very sceptical of real estate investing. I can't blame her. We are living paycheck to paycheck with 3 small kids.

I won't do this without her support, and she is trying to get a clear picture of realistic possibilities. She asked me to post these questions.

1: Is it really possible to replace someone's income with real estate investing? (We dont expect to get rich quick, but how many of you have been able to quit your job after building your business for a few years.

2: Once your business replaces your job, how is your work life balance? The most important thing to us is spending time as a family, and dont want to commit to a life style that requires 60+ work hours a week.

1. First things first. The gurus that charge thousands for their "secrets" don't have any info that's not easily available elsewhere. You could probably become your own guru with info available on any number of free webinars on BP, a few books, and browsing the forums.

2. You're living paycheck to paycheck. STOP IT. You need to discipline yourself and your family to live beneath your means. Don't tell me you can't do it -- I don't even know how much you make, and I don't care, but I happen to know for a fact, there exist people out there with twice as many kids as you and half your income, and they're surviving. Somehow. If they can do it, so can you.

I also happen to know for a fact there exist people out there making ten times what you're making, and are driving themselves into bankruptcy. They're living paycheck to paycheck, and they've already spent 3 year's worth of tomorrow's paychecks.

The thing is, earning money does not create financial discipline. Financial discipline comes first.

Pay yourself first. Most banks have computer systems now you can access to set up an account and automatically make deposits to. Force yourself to save more. It's a psychological trick: generally if you forget the money is there, you forget to spend it. But whatever you do, it won't do you any good to make more money if you automatically respond by spending more.

That's a big problem with the average person, they get a raise, they celebrate, "Whoo hoo, all our problems are solved!" and six months later they're back in the same fix they were in before the raise. Many, many people spend 110% of their income, no matter how much it is. Don't be that person. Be the one who disciplines himself to only spend 90% (or less!)

3. Yes it is possible to replace W2 income with investment income. Keep reading the forums on BP. You will hear it firsthand from people who've done it. Attend the free webinars. View the free podcasts. Read the free forums. Buy the books (sorry, they're not free!)

It's not necessarily easy, certainly not at first. But it's been done. People here will tell you their personal experiences.

4. The business only replaces your job in terms of labor hours if you let it. One big thing to do is get Multi-Family apartment(s) of some sort then hire a Property Manager. If you work it right, the PM does all the work, and you just cash the checks and look for more investment opportunities. Again, there are webinars and books available on BP about this very topic.

I'd say that generally puts your work-life balance a bit too much on the Life part. Or at least, it puts more of it under your direct control.

Myself, for example, I love what I do. I'll probably continue doing it until they physically drag me out and throw me out the door. But it would nice in the meantime to to show up around Noon. (No, I haven't made it yet.)