What would you tell your younger self?

Question

I just want to throw out this topic for curiosity's sake.

After learning tons of great info on BP, If you could go back in time, knowing what you know now and give some advice or pep talk to your younger 14-18 yr old self, what would you say to help you have gotten a better start in REI? Save up to house hack a multi family for your first property instead of buying a SFR? Don't waste your time and money on a higher education? Don't invest in your company's 401k and instead use it to buy real estate? Keep in mind for most people a young teenager isn't going to be interested in what you have to say or maybe won't understand at your current level. So what would you say and how would you say it to help your younger self understand and get that Ah Ha moment early on?

Back when I was 14-15 I worked at a fast food restaurant and the owner would come in and play tapes about making money in Amway. Not that it is a bad thing, but had he instead been playing stuff on real estate, that may have got me interested in the business since to me it would seem a lot easier and achievable and I probably would have started thinking about how to make it work. I did read Rich Dad Poor Dad when I was young but at the time I was probably too young to do anything with it. I was smart but the reality was that a 14 yr old isn't likely to have a way to buy a house even though I had a job that paid an awesome $3.25/hr (this was back in the early 90's).

So I'm curious what others think. I'm trying to instill these ideas into my kids brains so that they get a better start and understand the "why". Thanks BP Nation for your feedback.

James C. · Answer

Don,

I'll bite.

First: Teach your kid about money. Follow the Rich Dad, Poor Dad model. Teach them about investments and diversification. Teach them about time management. They cannot and will not get these from formal school education, and they are crucial life lessons that parents are best equipped to teach. Be there for your kids as much as possible. When you go to look at property (yours or potential purchases), take 'em with you. Ditto for any financial analysis you do, sit them on your lap if they can't sit by themselves. Double all that for girls. Start them while they are still sucking. Also, teach them that money ain't all that... God trumps it all. Instill in them a love for learning, not just results. Look, there are cultures much older than the USA. The really tough, serious business folks in those cultures have their offspring with them when they are doing business, straight from the womb. Those guys can clean anyone's clock. I've seen it, and been part of it.

Second: I'm a big proponent of higher education, but not taking huge loans for it. If you want to go to school, work for it. I paid for my undergraduate (took a small loan, and got lots of grants, plus worked), and CHOSE to take loans out for my MBA. You learn by spending money, either the school of hard knocks, or by formal education. I've done both. The second gets you a little slip of paper that kicks doors open when you need to have them kicked open. Tell them to get a technical undergraduate and a business dual major. Math, Science and Engineering are all good. Here's the why: Because it gives you multiple fall back positions, including world wide job possibilities. I would have house hacked instead of paying rent while I was getting my undergraduate degree. If you are really, really smart your "job" while you are getting your education is real estate investing while you are getting your dual major. It's cool to go put into practice what you learned in class.

Third: Tell them that their life partner MUST be on the same page for their goals, ambitions, and dreams. Don't accept anything less. Go the route of older cultures, and make a marriage contract. When the SHTF (there is, unfortunately, a 50% chance of this), it's better to have it in writing from when cooler heads prevailed. I wouldn't go so far as to say arranged marriages, but parents (generally) know their offspring better than the offspring know themselves at age 21.

Lastly, practice what you preach. Offspring see right through their parents when they try to BS them.

One more thing... teach your offspring that knowledge is the basis of confidence, and confidence is the opposite of fear.

Good Luck!

Jim

Don Spafford · Answer

Thanks to everybody who has contributed thus far. Great points all of you. I agree with the living frugally as probably the #1 point to start with.

Ian Olmsted · Answer

Live as cheaply as humanly possible, invest as much as humanly possible. Spend your 20's hustling and getting ahead. Marry somebody who is as driven as you are.

@James C. is on point about teaching your kids the ropes from day 1. When my daughter was 2, she was at the job site helping me "paint" with a brush and a cup of water while I rehabbed. Do so well and lead by example so that they don't feel the need to go to college unless they really want to (I have a PhD but could have made way more money spending 9+ post-secondary years investing in real estate).

Start a legacy. Get out there and crush it.

Thomas S. · Answer

Live frugally, do not buy a personal home, do not get married, start saving with your first and every pay check. Push yourself beyond your level of comfort and take risks when you are young and have nothing to lose.

As for education if it is your intent to have a career (doctor, lawyer, accountant) as opposed to a job go to school otherwise get a trade.

Your only purpose in working is to trade your time for money. The least amount of time for the greatest amount of money.

Don Spafford · Answer

@James C. Thanks for the feedback. I agree. My oldest is already on board and understands the house hack. When she gets to college she's already planning to do a house hack and rent to other students instead of paying the student housing or renting something else. In fact I've already been looking in areas where she is likely to go to school to try to get something long in advance so it will already be there when she goes and can become her training wheels property to manage.

What would you tell your younger self?

What would you tell your younger self?

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