Building Wealth in Kansas City
Are you thinking of investing in real estate, or have you already made the leap? Why? In a few words, real estate investing is the easiest path to building wealth in Kansas City.
Chad Carson writes at BiggerPockets.com, “The wealth you will build from real estate will allow you to have more freedom, more flexibility, and more time to do what matters. You can call this financial independence, retirement, freedom, or whatever you want. It’s the peak of the mountain on your wealth building journey.”
Building Wealth in Kansas City
What is at this financial peak? It’s a place where you have built such a large net worth or equity in your real estate that you can live off the income and never HAVE to work again unless you choose to.
Chad Carson says there are five stages you’ll pass during your climb:
- Survival is the milestone when you’re earning some money and getting your bills paid. It’s also the place where you’re digging yourself back out of financial holes you dug in the past.
- Stability is like Dave Ramsey’s first three baby steps. You pay off personal debts, you have cash reserves in the bank, and you build job skills that are in demand and command a better income in the marketplace.
- Saver is the stage where you realize the importance of your savings rate and put it into practice. Building wealth is simple, but it’s not easy. You need to maximize your income, simultaneously decrease your spending, and set aside a lot of money. Below average wealth builders save 0-10% of their income, but above average wealth builders save 25%, 50%, and even 75% of what they bring in. The faster you want to reach financial independence, the more you need to save.
Todd Tresidder of FinancialMentor.com says, “Great wealth builders focus on both saving money and earning more.”
- Growth stage is where most of us think of investing. It’s taking your $50,000 nest egg and turning it into $1,000,000. The key is to maximize compounding by reinvesting earnings, buying good assets, and maintaining discipline.
- Income stage is when you already have a large chunk of equity, and you’re ready to enjoy the fruits of your wealth-building labor. The objective here is to turn equity into regular income that gives you time, freedom, and flexibility.
Other Advice about Building Wealth in Kansas City
- Save on Vehicles – Not having a car payment allowed me to invest into myself, my Roth IRA, and my 401(k).
- Save on Shelter – renting is one option. You are not tied down to a 30-year mortgage. Most people don’t live in a house for more than seven years. If you know you won’t be in the house more than five years, consider an adjustable rate mortgage. The rate is lower than a fixed rate mortgage.
- Read all you can – Know all you can about investing in real estate. The more you know, the more prepared you will be.
- Get a mentor – find someone who has years in the business and can be a good ear for your plans and will help you avoid the mistakes he/she made.
Terra Firma Property Solutions, LLC is a professional, full-service real estate solutions firm.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566
