[VIDEO] The Path of Money Explained
For many people income comes from two sources, work income and assets. The Millionaire Real Estate Investor, by Gary Keller, does a great job in breaking down the steps so investors can begin their path to financial freedom. By controlling both work income and assets in their favor, an investor can begin generating positive cash flow.
There are 4 categories of spending:
- Everyday spending
- Charitable giving/donations
Successful investors designate at least 10% of their income (more is better) to the Investment Category. The earlier you start the better. We have many success stories where people set aside a percentage of income at an early age, even when only making $8 an hour. They begin purchasing rental properties and putting the cash flow back into their portfolio and purchasing more properties. It adds up quick. Consumers spend, investors invest. By changing your attitude from being a consumer to becoming an investor, a new financial path will begin to unfold and you will discover the benefits of compounding returns. The key to this plan is to assign your returns from investments back into the Investment Category, no matter how small they are at first, and allow your income from your assets to grow. Too many investors start increasing their lifestyle from this amount and never allow it to compound. Remember, returns become assets if you continue to invest them.
An investor’s goal is to have their assets making more money than their working income. The Rent Like A Pro system accelerates this process for rental property investors by greatly increasing the returns on each property.