There has never been a better time to purchase a home; however, you must discover the method you will use to execute your plan.
We are entering a recession, interest rates are sky-high, and there is a housing crisis—all things that can hinder our progress toward homeownership.
But these are all excuses. The simple answer is that we MUST purchase a home for ourselves and our kids. If your kids do not own a home, they are destined to be poor.
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Why you must own a home. Many talking heads in the media tell you to avoid purchasing a home. They are dead wrong.
A home is guaranteed to prevent you from going into an inflationary spiral. Once you lock in your 30-year mortgage, you can pay it off early and start living your best life.
Be careful when listening to social media about buying a home. If they own a business, this will keep them ahead of inflation.
However, you don’t own a large business if you are the average person. You must own a home to stay ahead of inflation and grow your net worth.
Property taxes and home insurance will rise over the years, but a good income-investing portfolio can help you cover the rising costs.
Trading Long Strangles for Passive Income
Why now is the perfect time to purchase a home. If you only work a 9-5 job, then times look bleak. However, look beyond your W-2. There is a world of income-producing gigs that can sustain your quest for homeownership.
First and foremost, we should work with our family to purchase a home. This may involve living at home longer, getting family members as roommates, and sharing a down payment.
You can also use the sharing economy to rent a room, car, or stuff (bikes, electronics, clothes). The creator economy has never been more prominent and accessible to the masses.
The problem most people face is that they are sticking to the old ways—my 9-5 should provide me with all I need. Sadly, those days are over.
How to Control Your Spending 103
Today, we must use our 9-5 job as a stepping stone to more lucrative personal endeavors that we can nurture in our off-time.
An example of multiple streams of income. Let’s take me, for example. The mortgage on my primary residence is $1,700/month. My military pension pays me $9,000/month, so I am good to go.
However, I continue to increase my income streams. I use dividends ($1,500), royalties ($200), rent ($700), and options trading ($1,000) to keep income in my pockets.
I love generating more income because I will eventually need to purchase more houses for my kids and grandkids. The fact is that homeownership will determine our kid’s fate.
The Pros & Cons of Homeownership 2
College versus homeownership. Many parents still believe college will determine their kids’ fate. If the kids can get an education, they may have a chance in this world.
I think the days of college boosting a child into the new income bracket are over. Studying for a top-tier profession (lawyer, doctor, engineer) may get you there.
Even with a top-tier profession, how long will it take to pay off student loans and make yourself eligible to purchase a home? 20 years? 30 years?
But what if parents gifted their child a paid-off home at age 22? Would they be better off than getting a bachelor’s degree at 22?
The magic of a paid-off home. Once your child has a paid-off home, they can use it as an asset to create a fantastic life. Remember, they can tap into the sharing economy.
How to Control Your Spending 102
Let’s say it costs $2,000/month to pay for everything in the home, including property taxes, home insurance, utilities, and subscriptions.
Your kid could easily rent rooms to cover these expenses. In fact, if they are willing to rent the master bedroom and an additional room, they could probably generate at least $3,000 per month.
Then, they can rent the garage or backyard space to generate more income. Some people rent their parking spaces if they live close to a hot venue or attraction.
You kid could buy a small, new car that they can use as a rental car on Turo. This can generate another $1,000. They are already generating $4,000 to $5,000/month without holding a full-time job.
The Pros & Cons of Homeownership #1
If your kid joined the military from age 18-22, they can use the G.I. Bill as an income generator. This could put another $2,000/month into their pockets.
Your child could earn $7,000/month while paying expenses totaling $2,000. The definition of wealth is having income that exceeds expenses—your kids would be wealthy.
Does this plan seem plausible? This plan may seem crazy or unattainable, but it is possible. In fact, this is my plan for both of my children.
I owe three homes. They all have mortgages currently, but that will change soon. I will pay off one of the homes by the time my oldest is 22 (he is 17).
How to Control Your Spending 101
He then can execute the above plan. With $5,000/month in free cash flow, he will be sitting pretty at age 22. The best part is that he will be free to pursue his passions without worrying about the daily grind.
Purchasing your kids a house. It’s time to purchase a home for yourself and your kids—no excuses. Homeownership requires a significant sacrifice; it always has.
If you work in San Francisco and earn $300,000 annually, send your family to Alabama or Florida. Pay off a home in 2-3 years and move there.
Save $50,000 and purchase a home in a low-cost-of-living country like Thailand or the Philippines. Move in with your parents to save $200,000 and buy a house.
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Rent multiple rooms in your house. Work three jobs to pay off your home early. Use your home equity to purchase a home outright in another state.
Find your way. There are simply too many ways to purchase a home today. The media will give you tons of excuses, but only you can take action.
My wife and I own three homes, but they didn’t come easy. There was a lot of pain throughout these 16 years; however, we always had a mission to help our kids.
Put on your “thinking cap” and consider what you can leverage to become a homeowner. You may work remotely or have something valuable you can sell.
You may be close to your family or have a high-paying job in a major city. We all have something we can use to get our foot in the door.
If You Don’t Have Money, Don’t Buy Anything
Most people want to buy a home using the old method—working 40 hours a week and living alone. Those days are over. We must work together.
Conclusion. Once we secure a home, the next mission is to purchase enough homes for our kids. Trust me, once you get on a roll, things will keep popping into your life.
Don’t forget you can buy land and add multiple mobile homes. The possibilities are endless, but you must see a world of abundance while avoiding the negative.
I may sound entitled to you, but I came from the mud. I joined the military at age 18 with $10 in my pocket. I married someone from a poor country.
We stayed humble and focused on our kids’ success through it all. Now, we are reaping the seeds we planted. With an extreme plan of action, you can do the same. Good Luck!
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