If you’ve been following the Jay Garvens Show since the start of the year, then congratulations! You’ve completed my crash-course in real estate and demographics. You know where the economy has been, where it’s going, and, most importantly, why it’s going where it’s going. You’re now ready to build on that knowledge, practice what you’ve learned, and prepare yourself and your family for the immediate future, when numerous financial and economic opportunities will present themselves.
Most individuals and households already know what to do to make their financial situations stronger and less precarious. Few, however, are disciplined enough to actually do it. Presently, I am less concerned with knowledge here as I am with action. Lord knows you have had sufficient time to learn all you need to know by reading books by Ramsey, Maxwell, and Stanley. Our concern now is to take what you’ve learned and formulate an actionable plan that will deliver results.
Your first priority should be to find a mentor—someone who has achieved whatever it is you hope to achieve and can offer you immediate and enduring guidance and counsel. If you’re interested in purchasing investment properties to rent or flip, seek out someone who has done this successfully. If your dream is to run a business, find someone who has established one of their own. Successful individuals are rarely shy about sharing their knowledge and expertise with those following a similar path.
There is a substantial element of risk in all endeavors, and you need to position yourself to make taking these risks easier. You need to take a step back to get a running start. This means cutting out excess expenses in your budget. It means paying off debt. It means getting rich by acting poor. Recently, I downgraded from a Mercedes to a used Ford Escape. I flew halfway across the county to pick it up and drive it back to Colorado. Most people would consider the transition from a Mercedes to a Ford to be a step back. In reality, cutting excess fat from my budget by opting for a practical car versus a luxury car makes me better situated to, say, take on more mortgage debt or put more money into savings.
I started tightening my belt right before the real estate bubble of the early 2000s. I unloaded several investment properties and moved my family into a sensible house. Recently I have started acquiring more investment properties with my wife. Had I acted rashly by snapping up properties while the real estate bubble was inflating, I would have been in far worse shape once it burst. Instead, I acted prudently to seek out value rather than wealth, and today I am much better off for having done so.
To be successful, you must look at every transaction—from grocery shopping to car buying—as value propositions. Seek out the best value you can so your money goes as far as possible. You need to reform your household budget and start acting in a value-minded way as soon as possible. This will allow you to pursue opportunities as they emerge over the next several years. This is, however, only the beginning. Stay tuned as we discuss the next steps over the next few months.
2-7-15 Let’s Get This Thing Started