Many people are excited about the idea of generating passive income but do not have a plan to start. The great news today is that information is everywhere. From books like Rich Dad/ Poor Dad to podcasts like Bigger Pockets, the info is easy to access now. Once you start to gain the information, the next step is to build a plan. Most of us don’t make progress because we never create a plan that we can actually execute.
Start with these steps.
1. What do you want to invest in
Decide what area of Real Estate you would like to invest in. For example, flipping, rental properties, wholesaling, etc.
2. Set a goal for the end of the year
If capital is what is holding you back, decide how much you will need and start with a year end goal. Then build backward into how much you will need to save each month and then to each week to be on track.
3. Make a real budget based on your current living
- Can I cut my current spending to put toward savings?
- Should I payoff debt first to create extra money?
Do I need a side hustle or a secondary income to create the cash I need to save.
Now the EASY part is over. Its time to take action. Make small steps each week and each day to move you closer to your end cash goal.
Get others involved: Have a friend, your spouse, your family, or a coach hold you accountable. Share your goals with them, and have them check in on you to see how you are doing. This accountability to others will keep you on track. “We are willing to let ourselves down before we will let others down.” If you start with this plan of action, you will be on your way. To many worry about the end goal and don’t consider what to do today to move the plan forward. Once you build the habit of hoarding cash, you will have many more avenues to invest in real estate as cash is the biggest hurdle for many.
Check out this article for some options of how to invest in real estate.