How You Can Prepare Your Personal Finances so You Can Invest in Real Estate
Prepare Your Personal Finances | Welcome back to our series – Why you should invest in real estate, where Kris and I talk to you about how you can invest in real estate.
This video is about how you can get your personal finances ready to invest. And we have a long version and a short version depending on how much bandwidth you have for listening to us talk finance!
Here is the long version:
Personal financial life
- Creating your ideal life
- Income Strategy
- How much money do you make?
- Create a budget – understand your fixed expenses
- Tax Strategy
- Understand your tax options
- Insurance Hedging
- Investment Strategy
- Estate Planning
- Retirement accounts
- Saving money gives you flexibility
- Saving for retirement
- Saving first
- Add to budget
- Create goals – are you maxing your 401k contribution?
- Emergency reserve
- Cash savings
- Goal for amount of reserve
- 3-12 months?
- Your personal emergency reserve is separate from your investment property’s emergency reserve
- Emergency reserve for property – 3 months of carry + $5000
- Student loans the next bubble?
- Student loans affect your purchasing power
- Paying yourself vs. paying student loans
- Invest vs. pay down debt – personal choice
The Importance of a diversified portfolio
- Reduce risk and volatility in your investment portfolio
And here is the short version: