My savings and investing-in-assets mindset was inspired by a couple of well-known writers in addition to a few family members.
To begin with, you have to read “Rich Dad Poor Dad” by Robert Kiyosaki. It can be found at your public library. Don’t get too wrapped up in whether the story is true, just think about the underlying lesson: to build wealth, you have to stop trading time for money. Kiyosaki opened my mind to how to use my savings. For example, he presents a different look at buying real estate such as your own home. While buying a home is an asset, it doesn’t produce real income until you sell it. Until that time, it is a liability that you have to pay to maintain. Compare that to rental real estate that actually produces monthly cash flow. That was a massive mind shift for me.
I was raised by a divorced mom and we lived in a duplex. At that time, the income from the rental unit paid the entire mortgage. She was such a smartie! After selling that property during a real estate boom, she used a 1031 Exchange (an IRS vehicle to saving capital gains) to use the proceeds from that one property and then purchased six rental houses. Those rental houses financed her very comfortable retirement.
Using mom as an example, and Kiyosaki’s book for the philosophy, a good chunk of my investment savings is earmarked for multi-family properties. Whether this will work for you is something you have to decide. But, there are other ways to invest that will also provide income such as index fund, stock purchases, businesses, and so on. All you have to do is open your mind to the possibility that there are additional ways to make money other than a full-time job. For me, I am using the full-time income to fund my investments. In six years, I will have enough to quit if I want.