So how can you start saving enough to invest in real estate? Overall the biggest key is to decrease your expenses. If you’ve never looked at your expenses on either a weekly or monthly basis, you’re definitely missing out on where you can start saving more money.
On a monthly basis you should know what income you have coming in or ideally how much money you have coming in if you’re commission based. You need to know how much you need to work in order to earn what you want. So on a monthly basis you should be able to map out, I would start with a month, you want to have a monthly savings goal. Then you’re going to look at a two month savings goal, eventually it’s going to be a quarterly savings goal, and then you want to look at a 6 month savings goal. That number should be pretty motivating on what you’re capable of. So it’s very in the future, it’s a week from now, it’s a month from now, its 2 months from now and it’s also quarterly and 6 months from now. You need to ask yourself is what I’m engaging in going to help me with that goal or am I going to temporarily put it on hold.
I’m not saying to not spend anything, but you need to know your own budget to see what is realistic for you to save in that time frame. You need to become aggressive with saving because you know on a temporary basis you will get where you want to be by taking that temporary discomfort on the savings aspect to hit your goal quicker if you’re looking to invest. So you might need to turn down certain opportunities, but that doesn’t mean you need to turn down everything it just means you’re very committed to that goal and you’ll hit that goal quicker. But you need that end goal in mind because without that plan of “I’m going to save this much” your attention won’t really be on that goal. So you definitely want to map out your income and map out your savings goal for 1, 2, 3 and 6 months. Stick to that number.
Once you’re able to really master your savings and your expenses. You want to figure out how you can make more money or increase your income. If this can’t be at your current position start figuring out other ways to make money. It’s very possible you can start selling old items either on Craigslist, through Facebook, or even Ebay, although I think they take 13%, and you can start making money very quickly. So I’d recommend you take all your old stuff and start selling it, you’re essentially just flipping it. If you do want to flip at a higher level there are tons of good guys online that do that. They go to stores like the Salvation Army or Savers where they find very discounted items at a low value and they can sell it much higher because they know what the item is really worth. That’s where you can start making some real profit. And that’s another way to increase your income.
But then you got to look at if I’m looking for these items and I’m driving to all of these places, lets say it’s 10 minutes to drive to one place and I only get 10 bucks you only value yourself at $10 for that hour because even the work to list it, to ship it, everything like that, so you have to factor that in as well.
So increasing your income and decreasing your expenses are the two quickest ways you can start saving money in order to invest. Focus on decreasing your expenses first and then with the free time focus on increasing your income whether it’s at your current job or other ways you can start making money. You can start hustling items that you have at home, you can start moving items at Salvation Army, flipping other items, you can get into things such as Uber, if you have a car that is decent and you want to dedicate time there, that’s other places you can make money. There’s 168 hours in a week, figure out how important this is to you and what level of commitment you’re going to put on saving to invest.