Originally posted by @Larry Turowski:
@Kris Haskins Congatulations! So how did lifeonaire change your thinking exactly?
I've always been a saver and someone who tries to live well below my means. I almost can't even comprehend spenders and people who rack up debt. To me living within your means is as intuitive as staying hydrated.
I actually read lifeonaire and I like the term. But to me it's like--isn't this obvious? Yet I know it is not to many and even most people. I feel the same way about Rich Dad Poor Dad. Great book but obvious.
Think of it like a man doesn't understand how a woman thinks. And vice versa. Maybe you could help me understand how a non saver thinks and what helps to change that thinking.
Great question Larry, before reading their stuff, I thought I'd be in debt for the rest of my life. I had no concerns about paying down debt, matter of fact, I loved debt. I've done deals with debt, no problem-plus I have a staff of people renting my houses paying off my debt. Their book helped me understand my time vs debt issue. How each lender takes a piece of our lives. Now, I understand the each house takes a piece of my life away, but the lender also requires me to work for them as well. I have no problem working for my lenders. As I age with my holdings, I just want to eventually have my cashflow replace my expenses and not worry about some debts. With lenders, it's only a matter of time before you have to take time for them...
Also I agree about living below my means, It's very challenging with 2 kids, but we live well below the average American. We have nice things and a wonderful house because we understand how to buy houses without having to qualify for mortgages, a wonderful skill to obtain in life...
And no, living below our means is not Obvious. I have friends that are super leveraged and spend every dollar they make. I've just been so blessed to have met wonderful mentors, including Lonnie Scruggs, RIP, that showed me a few tricks. He was up in age when I met him so I trusted his judgment.
I don't know about "saving". I'm heavily invested in RE. I've saved up merely to buy more houses to create more income for my family. I use my SDRIA for saving, but even that is invested as well. Don't know if having large amounts of non-invested money is where I'd be, but I can't stress enough that everybody is different. What helps me sleep at night is knowing I'm paying down mortgages. Some people may sleep better knowing they have large cash reserves. I don't mind having my cash in houses because I can't think of any other place that's safer. Plus, i can sell if needed, or just get a line of credit-while getting rents. Good place to be in... Good luck, you'll do well..
