I have already warned my girlfriend… I think about money… a lot. Because of my overactive brain, it shouldn’t surprise you that I already have many investments mapped out for my future. Do you ever think about your financial future? What is your financial plan for your life?
My Crazy Life
When I was 23 years old, my debt load was up to about $12,000 from student loans and an engagement ring. When I got married, my debt load was joined with my wife’s and grew to nearly $20,000. Thankfully, we aggressively paid off the debt in about 14 months and built up quite a lot of equity in a foreclosure we fixed up. Unfortunately for me, my wife didn’t want to stick around any longer and I was back in debt to the tune of $21,000. By avoiding sleep and television, I was able to pay this off in 6 months.
This is definitely not the way I planned my life, but you know what, life will never be as you planned it. This however, does not mean that you should have no plans for your life. While I know that my financial plans will not work exactly as I design them, I am miles ahead of my friends financially because I have constantly had financial goals and aspirations. I challenge you to do the same.
My Future Financial Plans
I currently work for a great company and am wrapping up my MBA at Grand Valley State University. With my new degree, I hope to move up into a managerial position and get a bump into the next pay bracket. Factor in the meager amount I make from this website and I’ll have quite a few dollars available at the end of each month. This will allow me to pay off my mortgage by the end of 2014, and then it will be time to save up and invest in real estate.
A multiplex will be the first investment on my radar – most likely a 4-unit complex. With my work and website income, and the $2,000 a month from rent, this investment should be paid for within three years, and then it’s on to the next one. With this method, I will be able to acquire 10 properties in 18 years. At the age young age of 46, I will have 10 complexes valued at over $1.5 million and will have a cash flow of over $20,000 per month. At that point, I will have plenty of options in life don’t you think? I could do about anything I want, and I’d only be 46 years old!
As I stated before, life doesn’t always happen as planned, but what if 50% of it came true? That means I have $750,000 in properties and $10,000 coming in each month. Still pretty good right?
What Is Your Financial Plan?
So here is what I am most interested in – what are your financial plans for the future? Are you investing in a 401(k) through work? Do you own a business of your own? Are you investing in gold? Let me know in the comments below! I would love to hear about it!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.