The Property Investor's Coaching Academy
Don't give up your day job
Don’t give up your day job…
If you have attended many investor meetings you will, undoubtedly, have heard speakers going on about how you can give up your day job as soon as you become financially free – often in as little as six months. By ‘financially free’ they mean, generally, replacing your wage or salary.
Think about it. 99% of people spend all their salary on a monthly basis. Very few people save. Even if they get a better paid job, or a wage rise, their spending, and quality of living, will rise to absorb the extra money. You generally need to earn lots to be able to save a meaningful amount.
So, you have some buy-to-lets, and the rental income is now equivalent to your salary, and you reckon you can now give up your day job, right?
Thing is, you are now unemployed (or self-employed) and have days full of….well, nothing. Nothing to do. Life gets very boring, and expensive, too, because whilst you were working, you weren’t spending any money. Now you have the free time, you will…. and you will find you need rather more than your previous salary. You will spend all that rental income, which means you are not saving, and have no, or very little, capital for investment.
Now try getting a mortgage! You’ll find you have no chance, so you’re stuck. You have a few properties that bring you in some cash (but not enough), you’re not putting money aside for the inevitable maintenance costs and you can’t make any more…
MUCH better, by far, to keep your job and continue to live on the salary, saving the rental income and using that for capital investment. You can then, using options or rent-to-rent, increase your portfolio quicker, increasing your rental income and acquiring more and more properties. Eventually you will get to the point where you will have double your original salary to live on, plus a substantial amount for investment. NOW you can think about giving up your day job. That’s how you get rich!