Without even realizing it, I somehow nearly end up totally “broke” by the end of each year. It just happens. After it happening again this year, I realized I was subconsciously investing EVERYTHING I had left over by the end of the year and starting the new year off close to $0. This keeps me extremely motivated to continue working hard, AND keeps my money invested and continuing to grow. Enjoy!
Feel free to add me on Snapchat / Instagram: GPStephan
It started in 2011 when I began buying real estate. I dumped pretty much every penny I had saved up into buying rental properties and renovating them to rent out. At the end of 2011, I had maybe $1000 to my name by the time I was done. I was literally counting on the rent from one of the places to be able to pay for the expenses I had coming up…I also knew I had to work hard as a Real Estate agent to bump the savings up.
Same happened in 2012. I continued buying rental properties - I even sold my Lotus Elise, which was my dream car at the time, to buy a triplex in San Bernardino. And just like the year prior, I was broke by the end of the year after renovations and other random expenses.
Without this being a conscious decision, almost every year since then I’ve been broke by December 31st. I don’t even think this was something I intentionally set out to do, it just happened. Some years I’d max out retirement accounts, I’d buy another house, something would be renovated, I’d invest it in my real estate business with things that would bring me more future business.
But here’s how I view it. Money by itself is useless unless it’s invested and making you even more money. If you have $100,000 sitting in account, what is that good for? Unless you spend it on something useful, it just sits there. Sure, it’s peace of mind in case of an emergency, I think it’s important to still be smart about it and take the risks you are comfortable with, but beyond a certain point, money sitting is money losing interest to inflation. It’s a massive opportunity cost with money that could be earning you more money, but isn’t. So I make sure I invest AS MUCH AS I CAN every single year. I like to invest every last dollar I have left over, every single year. I want it all invested and stashed away. My goal in doing this is just to increase my passive income and grow my net worth. By doing this, and being left with almost nothing at the end of the year, it is the best motivation you’ll ever have.
When you have absolutely no other way out other than to make it work, you make it work.
It’s very important I mention not to be too risky here - there’s a fine balance between the risks your willing to take and what makes the most sense for your situation. For me, I can afford more risk because I have a lot to fall back on…I can afford and feel comfortable with more risk than the person who’s one paycheck away from being evicted and on the streets. That’s the difference. Be smart about it and know yourself and what your situation is. Don’t just invest it all if it means you can lose everything.
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Feel free to add me on Snapchat / Instagram: GPStephan
It started in 2011 when I began buying real estate. I dumped pretty much every penny I had saved up into buying rental properties and renovating them to rent out. At the end of 2011, I had maybe $1000 to my name by the time I was done. I was literally counting on the rent from one of the places to be able to pay for the expenses I had coming up…I also knew I had to work hard as a Real Estate agent to bump the savings up.
Same happened in 2012. I continued buying rental properties - I even sold my Lotus Elise, which was my dream car at the time, to buy a triplex in San Bernardino. And just like the year prior, I was broke by the end of the year after renovations and other random expenses.
Without this being a conscious decision, almost every year since then I’ve been broke by December 31st. I don’t even think this was something I intentionally set out to do, it just happened. Some years I’d max out retirement accounts, I’d buy another house, something would be renovated, I’d invest it in my real estate business with things that would bring me more future business.
But here’s how I view it. Money by itself is useless unless it’s invested and making you even more money. If you have $100,000 sitting in account, what is that good for? Unless you spend it on something useful, it just sits there. Sure, it’s peace of mind in case of an emergency, I think it’s important to still be smart about it and take the risks you are comfortable with, but beyond a certain point, money sitting is money losing interest to inflation. It’s a massive opportunity cost with money that could be earning you more money, but isn’t. So I make sure I invest AS MUCH AS I CAN every single year. I like to invest every last dollar I have left over, every single year. I want it all invested and stashed away. My goal in doing this is just to increase my passive income and grow my net worth. By doing this, and being left with almost nothing at the end of the year, it is the best motivation you’ll ever have.
When you have absolutely no other way out other than to make it work, you make it work.
It’s very important I mention not to be too risky here - there’s a fine balance between the risks your willing to take and what makes the most sense for your situation. For me, I can afford more risk because I have a lot to fall back on…I can afford and feel comfortable with more risk than the person who’s one paycheck away from being evicted and on the streets. That’s the difference. Be smart about it and know yourself and what your situation is. Don’t just invest it all if it means you can lose everything.
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
This reminds me of the game "Gas Station Simulator" where you renovate an old gas station to get it up and running for business again. I found myself constantly pumping money for additional investments (more kiosks, vending machines) and leaving myself empty but able to afford more and more as the days went by. 😀
Awesome video graham. Really like these older videos a ton. They're pretty raw lol.
Edit: Grandma is super awesome.
“SunCor Financial MPI review” "
I think you should try using a regulated broker to trade or you can also reach out to Mr Thomas Rodriguez with <<thomasrodrigueztradingservices@gmail.com>>> to assist you
True advise
Man what is this crappy music in the backround lol
How did you think this music fit the video back then? Damn dude this is my concentration music and I feel like I'm at a club watching this video haha. I love your content
What's the average commission rate for multi million dollar sale.
Dude… it's July 1st, 2020, and I still think this is one of your best videos yet. Powerful stuff!
I too cry a lot on the weekends.
Maybe a video how you made a million making YouTube videos?🤔
Thanks Graham
The Moorish General Tariq Zyad was the originator of the burn the ships in 711 when they conquered spain.
Anything
Even if you have to temp crash someone’s couch or live in your garage to buy a multiplex, that’s cool.
But buying a Lamborghini as an employee while living in your moms basement is…..(fill in the blank )
Greetings from the year 2527 I love the content. Trust me when I say your investing strategies are ahead of your time.
Ohh and yes everyone Trump wins 2020
Cortez's story is amazing!
graham what if liking every video of yours makes it so my feed is over loaded with just your videos. Linus tech tips says like it if you like it. This is a voting mechanism you might really want. Although the way you ask for likes is kinda funny, but at the end of the video, I'd call for honest feedback, and you can make more videos like the ones that have the best like ratio. If you don't like it ask for a comment why. Ask people to send it to their friends.
As long as you appear broke to the IRS lol
Ha! I thought the lamp was a symbol from your drum set! I was thinking you kept your drums next to your desk so you could let off some frustration by jamming out right there.
I keep my guitar with me in my job trailer on my job sites when I need to chill and get away from all the bs people keep trying to sell me.
Keep up the awesome content!
You are like a brother from another mother or my twin hahaha.
I Have always had that mind set.
👏👏👏👏 great videos, accurate information
"broke" in the sense that there is no cash. But there are plenty of assets that can be turned into cash if there is absolutely no other choice. Penniless, but still rich.
still better to keep at least 3 months of costs as "insurance". "Insurance" costs you money but will give you an even better "cushion" than not having that checking or savings account.
I don’t know if I was to attracted to the title of this video, but this was great!
But, Grahaam! I did share your unboxing video, but then my sister thought I was a credit card nerd. 🤓
The funny thing is that when I started to watch Graham, I thought the videos were clickbait. Over time I have realized that the content exceeds the expectation. You are my youngest role model Graham!!
Good stuff!