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I’m going through a very interesting psychological phase right now, specifically related to opportunity, finances, budgeting, optimizing, and mindset.
My monthly living expenses are about to increase ~$2,300 a month.
A THREAD
My monthly living expenses are about to increase ~$2,300 a month.
A THREAD
Yes, I’m a landlord.
But I’ve never owned a primary residence.
I’m a renter.
And as a renter, I spotted opportunity through a combination of COVID, shelter in place, and the massive influx of new residential development where I live
But I’ve never owned a primary residence.
I’m a renter.
And as a renter, I spotted opportunity through a combination of COVID, shelter in place, and the massive influx of new residential development where I live
A crap ton of new units are coming online where I live.
There're properties JUST opening up now and properties under construction that are slated to open this Summer.
We're talking multiple 20-40 story buildings.
The timing could not really be worse for developers
There're properties JUST opening up now and properties under construction that are slated to open this Summer.
We're talking multiple 20-40 story buildings.
The timing could not really be worse for developers
Brand new luxury buildings going online, but no one to apply or tour them. That means:
HOUSING SUPPLY WAY UP
HOUSING DEMAND WAY DOWN
HOUSING SUPPLY WAY UP
HOUSING DEMAND WAY DOWN
It’s a renters market right now.
Which brings us to our first subject:
1. OPPORTUNITY
As a renter, there’s a lot of opportunity right now because I have leverage, negotiating power, plenty of options, and no pressure to move.
In short, the “ball is in my court.”
Which brings us to our first subject:
1. OPPORTUNITY
As a renter, there’s a lot of opportunity right now because I have leverage, negotiating power, plenty of options, and no pressure to move.
In short, the “ball is in my court.”
Been watching rental inventory and pricing. Found a new luxury property that opened recently in my ideal location. And get this:
-they dropped rent from $4,300 to $3,956
-two months free
-Plus $3k in credit
That's $11k in concessions BEFORE rent reduction
-they dropped rent from $4,300 to $3,956
-two months free
-Plus $3k in credit
That's $11k in concessions BEFORE rent reduction
In addition, it has a sick rooftop
That leads us to our second subject:
2. FINANCES
I’m usually a pretty frugal person which helped me get to where I am now financially.
But, running the high-level numbers, evaluating the situation, weighing pros and cons, I'm moving forward with this unit.
2. FINANCES
I’m usually a pretty frugal person which helped me get to where I am now financially.
But, running the high-level numbers, evaluating the situation, weighing pros and cons, I'm moving forward with this unit.
One thing I’ve learned through the years of being extremely frugal:
It helps A LOT in the beginning when you’re getting started in your career and investing. It sets you up with great habits for the future.
But, there's a time when I think you should enjoy SOME of your money
It helps A LOT in the beginning when you’re getting started in your career and investing. It sets you up with great habits for the future.
But, there's a time when I think you should enjoy SOME of your money
For now, this situation is me “enjoying some of my money.”
A few of you may cringe at that. A few of you may agree. But if over the next 13-months of the lease (3 of them basically FREE), I decide it’s not worth it, I’ll go back to a cheaper living situation and be fine.
A few of you may cringe at that. A few of you may agree. But if over the next 13-months of the lease (3 of them basically FREE), I decide it’s not worth it, I’ll go back to a cheaper living situation and be fine.
Next subject:
3. BUDGETING
BEFORE you make a big financial decision, review your income and expenses. Go back 3-6 months on your credit card and bank statements. Literally make a spreadsheet of your monthly income and expenses.
Lay it ALL out there. Crunch the #'s.
3. BUDGETING
BEFORE you make a big financial decision, review your income and expenses. Go back 3-6 months on your credit card and bank statements. Literally make a spreadsheet of your monthly income and expenses.
Lay it ALL out there. Crunch the #'s.
Running through this exercise confirmed I could afford the place, but believe me, it was hard to see my monthly cash flow being reduced.
Again, especially as someone who is naturally frugal…
Again, especially as someone who is naturally frugal…
But that lead’s us to:
4. OPTIMIZING
While evaluating the scope of my income sources and expenses, I found areas where I could be more efficient and:
-make more money
-lower my expenses
4. OPTIMIZING
While evaluating the scope of my income sources and expenses, I found areas where I could be more efficient and:
-make more money
-lower my expenses
I found a way to save $60 a month on my commute (when back in the office)
I’m saving $65 a month by canceling my gym membership and using the property’s gym
Found a way to save $35 a month on my cell phone by switching providers
That’s $160 a month saved right there.
I’m saving $65 a month by canceling my gym membership and using the property’s gym
Found a way to save $35 a month on my cell phone by switching providers
That’s $160 a month saved right there.
And the craziest thing I’ve realized through this whole experience has to do with our last subject:
5. MINDSET
With the impending increase in my living expenses, I’ve found myself more MOTIVATED than EVER to find ways to INCREASE my income.
5. MINDSET
With the impending increase in my living expenses, I’ve found myself more MOTIVATED than EVER to find ways to INCREASE my income.
I never expected this.
Adding MORE expenses to my life, translating into MOTIVATION to make more money?
It’s real. And I’m going through it right now.
I’ve got plans I’m working on and executing them as we speak.
It blew my mind.
Adding MORE expenses to my life, translating into MOTIVATION to make more money?
It’s real. And I’m going through it right now.
I’ve got plans I’m working on and executing them as we speak.
It blew my mind.
I’m not saying you should go out there and rack up expenses to find motivation.
I’m observing how I reacted to the situation and I think that’s important for you to understand.
I’m observing how I reacted to the situation and I think that’s important for you to understand.
I didn’t freak out about higher living expenses. Instead, I’m working on solutions to make up the gap by increasing income and cutting other expenses.
-Be solution-oriented
-Believe in yourself that you can ALWAYS make more $
-evaluate your finances, optimize, and be efficient
-Be solution-oriented
-Believe in yourself that you can ALWAYS make more $
-evaluate your finances, optimize, and be efficient
So hopefully, you found some value in the experiences I’m going through now.
Or at least some mild entertainment.
Let me know what’s one thing you’re struggling with in the subjects we covered.
Or a strategy that’s helped you recently
Or at least some mild entertainment.
Let me know what’s one thing you’re struggling with in the subjects we covered.
Or a strategy that’s helped you recently
Stay safe people.
Have a great Sunday.
HAPPY MOTHER'S DAY.
COMMENT with any questions.
Have a great Sunday.
HAPPY MOTHER'S DAY.
COMMENT with any questions.
