Suppose you had $10,000 right now - where would you put it? How would you invest $10,000? Would you think it prudent to put this money in the stock market? Would it be best to pay off some debts and possibly have a better life immediately? Or does it make sense to put the money in real estate?
What do you think? I'd love to hear your responses in the comments section below.
Well - IF I had the money, I'd put the money into residential real estate today. Why? Because the real estate market is so cheap right now that it's ridiculous. You could literally be preapproved for a $40K loan if you had $10K in cash on hand. And if you got a 30yr mortgage, you'd be probably collecting anywhere from $300-$400/month in rental income profits. At this rate - you'd have almost 30-40% of your original $10K within the first year! This is money working hard to make more money!
I know that $10K is a lot of dough - but why not make the money you do have work for you? You may not have exactly $10K, but do you have $1K? $3K? or $5K? Obviously, this little cash will not do much in real estate - but perhaps you should start small until you reach your $10K goal? Start with investing in DRIPs, index funds, etc. because this will slowly help you turn your little money into BIG money over time!
The rich become richer because they have their money work for them! They do not work for money! This is the trend we all need to follow and use the little money we do have to work for us. Over time, you'll be leaving that cubicle that you're cramped into for good! Just an FYI - There's a great book out called "The Richest Man in Babylon". A good read for those who are just starting out and planning for their financial future. Dave Ramsey's "Total Money Makeover" book is also a great starting tool.
I hope I was able to enlighten you in the moment it took you to read it!