You’ve filed your taxes – or an extension – and are banking on a lump sum back, or another bill to show up in the mail. Whichever your outcome, it’s safe to bet that when it comes to tax season, you’ve got money on the brain.
So, let’s talk investing.
When it comes to generating money, KellerINK’s HOLD authors point to building wealth versus earning a paycheck. Linda and Jimmy McKissack, Jennice Doty and Steve Chader started investing nearly two decades ago, and shared some tricks of the trade at a recent conference.
Tip #1: Invest in what you know, what you understand and what you can somewhat control.
For our authors, this omitted stocks from their investment options. They personally didn’t enjoy learning about stocks and knew they wouldn’t be buying enough of any single stock to control its business. Instead, they decided to zero in on their expertise – as real estate agents – in real estate. They learned the ins-and-outs of long-term real estate investing and decided it would give them the freedom and the margin to obtain financial independence down the road so they could do the things that mattered most to them.
Tip #2: Do the right research and ask the right questions.
Again, only invest in what you know – which doesn’t mean having a general knowledge. Do your research. Pinpoint professionals (mentors) in your investment arena, and ask the hard questions. Set up a weekly one-on-one, start an investor club with like-minded individuals and read everything you can get your hands on.
In other words, get your feet wet before you cannonball into any financial opportunity. You can never know too much.
Tip #3: Learn to live off less than 100% of your income.
Put aside an agreed-upon percentage of your income each paycheck, and reinvest – have your money work for you. Linda and Jimmy McKissack began wealth building by saving money in a “do not touch” account and buying a new rental property fitting their criteria every time the fund hit $15,000 to 20,000. Then they’d start the process over again. Encouraged by their results, the McKissacks quickly moved from buying two rentals a year to 20.
Tip #4: Compile a trusted team to help you invest in the right properties.
No one succeeds alone. When it comes to researching, purchasing and managing his investment portfolio, Jimmy McKissack employs the help of a real estate agent, CPA, lender, property manager and attorney. He’s found trusted advisers that understand his requirements and suit his needs– in his case, each person on his investment team invests heavily in real estate, so they have a personal as well as a monetary understanding of his wealth building goals.
Use these ahas to set your passive income goals up for success, and share other investment strategies and takeaways below.