If you’ve been reading these posts for very long, you know my simple plan for early retirement: save a ton, squirrel it away, then buy income-producing assets.
The reality of the plan is that it takes time to accumulate enough to buy my preferred investment: rental units. But, NDQ HQ is about to be abuzz with activity as a multi-unit building is under contract and scheduled to close later in May. What’s the fuss over rental units? Oh, let me tell you.
Rental units are a business and, therefore, come with advantages of businesses: expenses that can have tax advantages for the owner, deductions not available to homeowners, and the ability to live rent-free and let others pay the mortgage.
There are also responsibilities, so not everyone is cut out for this type of work. You have to deal with all types of people, manage contracts, hire professionals, give up your free time to keep up on maintenance, and be willing to have difficult conversations when things don’t work out as agreed.
Once this property becomes mine, I’ll then start building the investment fund up to buy another. I know the amount of income I will need to replace with rental income and this is just one step toward that goal so I can retire early. But it’s going to take a few years to build up the fund. That’s OK, I’ll have plenty to occupy my mind while moving forward with the plan.
What’s your plan for retirement? My plan doesn’t have to be your plan — everyone has different goals and desires for how they want to spend their time. Think about what you enjoy and how you want to spend your days now and later. While you are developing your own plan, start saving immediately. Put your money in an income-producing fund as a holding account. You will be building your fund while you plan.
The best part about moving ahead with the plan is that I am more encouraged than ever to save even more and do as much as I can to buy more income-producing assets. You can too!
p.s. Check out the new NDQ Guide: 500 Tips the guide that will give you actionable steps to jump start your savings and investing immediately.
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