A REAL Behind The Scenes on Real Estate Investing

As a new real estate investor, I am always seeking out information and I do a lot of reading of posts on social media and blogs. I like to see the real life posts that cover the good, the bad, the mistakes, and the realities of the work put in by more seasoned investors. Much like all aspects of social media sharing, I find myself constantly seeing fantastic results and amazing deals and cashflow number. Someone that just bought a 3/2 duplex that cost them $70k and only needs $5k of work and will rent for $1500. Like “too good to be true, one lucky deal of a lifetime” kind of numbers and that’s about it. (Keep in mind that just because someone says they are an investor, doesn’t mean they are a good investor or giving good advice, so make sure to do your due diligence, even as you read through my posts)

There are a few accounts out there that cover it, but I rarely see mistakes or major setbacks being posted. So where’s the real life? The mistakes you made in estimating expenses? Those houses you have sitting vacant and can’t find a tenant, or the ones that still have a tenant in that’s not paying rent? The missed day of playing outside with your kids because you’re putting in work again?

Welp, don’t worry..I got you. The past few weeks have been filled with a hell of a lot of reality over here. To start, we have dealt with our first money pit. It just keeps having one thing after another pop up, including electrical issues, plumbing issues, and a flooded basement after we received 9 inches of rain. They have all been little things but they are starting to add up and wear us down, along with the tenant. We have also dealt with our first three day notice for eviction due to a lack of cooperation and nonpayment. We have since received partial payment and are working on the remainder of May rent, BUT tomorrow is a new month, and let’s be real, not expecting things to be any different for this tenant who is currently laid off due to COVID-19 and says they are waiting on checks. We had to enlist legal help with all the COVID-19 to make sure we could even explore eviction right now. We have also dealt with finding a potential flip with our first partner, then we put an offer in on it, only to realize there’s a bunch of folks out there ready to overpay and it received multiple offers over asking. Lastly, I got to spend a gorgeous day stuck on my laptop spending hours gathering documents for the lender on our cash out refi.

This time for us in our investing business has been scary, exhausting, hard, and educational to say the least. This post is also not meant to discourage you by any means. I still believe in the power of real estate and just want to help you be prepared for the “when it rains it pours” that you will inevitably go through in your investing journey. So, how are we surviving it?

The 3 M’s-Mindset, Money, and Management

Mindset-I will keep it short and sweet. I will take a rainy day in the real estate game any day over sitting on the sidelines. I still feel GRATEFUL even on the worst days to be where we are today with our rentals.

Money-Reserves. This is why they tell you to PLAN AHEAD and have your money right, so it becomes annoying not devastating to your business. Luckily, we were ready for everything that has hit us financially, and are ready for whatever other rain or flooding (literally) that comes our way next.

Management-Also keeping this short and sweet..our property manager has helped us tremendously with all the issues above, and while we could have done everything on our own, I wouldn’t have wanted to. Having a great team is WORTH EVERY PENNY.

So there you go..reality and my reaction, and keeping it real that it’s not all cashflow and smiles every day. I hope this helps others understand a real behind the scenes of real estate investing!

Reflecting on 2019

There will be a whole 365 days in 2019 for us to have set goals, have taken action, worked hard, and to have crushed those goals. Year end is a great time to throw modesty out the door and recognize how great your year was and how awesome you are for all that was accomplished.   If you did the work, then I don’t care who you are, you deserve to celebrate, so go on..brush your shoulders off.

If you instead stayed on the couch all year again, and your biggest accomplishment was only gaining 10 lbs from all the junk you ate while binge watching all the Netflix original series..well then..might be good to reflect on that also.   Still playing the “victim of your situation” game and convincing yourself that you can’t change or grow because “insert your excuse here”.  Did that binge or pity party help you or hurt you?

Not trying to brag below I promise you..just trying to prove that you CAN do big things if you set big goals and are ready to take action and put in the work.   You can and should think differently about life and the pursuit of happiness..question things and don’t just do what everyone else is doing because it’s easy.  Also, I’m sharing some stuff that makes me feel vulnerable and gives a private look into some events in my life over the past year.

If you’re not ready to grow and celebrate success, then please stop reading this and head back to your latest Netflix binge. If you are ready, but not sure where to start, start by grabbing a pen and paper and write down everything you accomplished this year that makes you feel proud to tell others and makes you feel like you have grown as a person.  Then go share it with the world!!

See my list below:  My 2019 Accomplishments

  1. Started MySemiBasicLife.com blog and InstaGram account
  2. Grew organically from 150 followers to 1250 followers
  3. Helped teaching my youngest to read and my oldest to read and rehearse lines for a major part in a play
  4. Bought 1st rental property end of March 2019
  5. Bought 2nd rental property in August 2019
  6. Bought 3rd rental property in December 2019 (this one with a full cosmetic rehab)
  7. Was a guest on not one, but two podcasts, and submitted an idea to one of my favorite podcasts, and got to speak with the producer and provide input on a new series (can’t share any more info..sworn to secrecy..lol)
  8. Became debt free after selling our cars and paying off the remaining of our $165,000 in consumer debt. Nobody to impress now that I’ve changed my value system and if I don’t have the cash for it, then I’m not buying it.
  9. Completed a No Spend Year of no clothes, shoes, accessories, purses, makeup, haircuts/dye. Turns out I don’t give a shit what others think of me after all, and I don’t need makeup or new clothes to try and impress anyone.  “Letting myself go” in the eyes of society by not wearing makeup, rocking my grey hair, and not buying the latest clothing trends feels a lot more like getting comfortable in my own skin.  I’ve never felt prettier on the inside and out then I do right now.  I also learned to cut my own hair..not getting accepted into cosmetology school anytime soon..lol, but I can do it and it’s fun and free.
  10. Joined a real estate mastermind group and joined a local real estate investors group and have networked and made several great connections in the industry
  11. Attempted my first seller finance deal (didn’t work out but was a great learning experience and made some new connections in the process)
  12. Helped land a few really big accounts at work that required a lot of work and were out of my comfort zone
  13. Was matched with a little sister through Big Brothers/Big Sisters and continued to volunteer on the family selection committee for Habitat for Humanity
  14. Survived a lot of loss including losing a good friend to glioblastoma, losing my dog of 17 years, losing a terminal puppy we adopted, a dwarf hamster, and a pet rat. Lastly, there was an advanced stage breast cancer diagnosis for my mom with lots of biopsies, dr visits, chemo rounds, lots of soups/casseroles and will be leading in to surgery/radiation/hormone replacement in 2020.
  15. Started a gratitude journal that I write in every night.
  16. Started a daily morning meditation and manifesting the life I want practice.
  17. After my leg injury finally healed, was back up to running over 5 miles until I got bit by the neighbor’s dog..lol
  18. Stopped two nasty habits that I have battled on/off for years, smoking and drinking.  I still occasionally have a beer or drink, but not like I used to and have been smoke free since 6/1/19!!  I’m now focused on enjoying my current situation more and building a life I don’t need to escape from.  No judgment to my friends that are still doing these things..just doesn’t fit in my life any longer.
  19. I read 45 books this year!!
  20. Experienced 6 figure net worth growth through all of the above focus, hustle and sacrifice

Wow..I DID ALL OF THAT IN ONE YEAR??!!  I did notice that I didn’t have as much of a focus on my marriage or kids this past year, and plan to make sure I am placing more focus on those areas of my life in 2020.  Of all of those accomplishments, I am most proud of the self love and belief that I can do anything..because clearly I can after seeing my list!!  Also, with the belief in myself, I have noticed my risk tolerance is completely different.  I am ready to take on risks instead of turning away from them, because I know I will learn and grow from any mistakes, so bring them on!

Did you write a list of goals at the beginning of 2019 that you can compare your end of 2019 accomplishments to?  If not, no worries, because  I didn’t write any goals out at the beginning of the year either.  2020 marks the beginning of a new decade and new opportunities to start fresh for all of us.  Make it the year you stop saying “someday” and finally replace it with today.

Anyone else brave enough to share their year in review??!!

BRRRR it’s getting cold in here 🥶

I know I know..I’m sure everyone is thinking there must be some Toros in the atmosphere comes next?! Or maybe I’m the only old ass nerd still out here quoting Bring It On, which by the way, happens to be a classic cheerleading movie. 📣 🎥

Ok focus..it IS super cold and snowing hard here in Kansas City today, so it’s perfectly timed to talk about BRRRR, which is why we are all here (not from the cheerleaders movie or cold weather, but the real estate investing version). The strategy has been around for a minute, but the guys from BiggerPockets hold the clever naming rights I believe.

I am SO SO SO PUMPED UP to be getting after our very first house using the BRRRR method. So I wanted to explain this strategy very high level, and how it can be a great way for investors to grow a portfolio of buy and hold properties quickly, and with little of their own money tied up in the deal long term. Clearly I’m a newbie and can only speak to what I’ve researched/read/listened to, and what real life has brought my way so far, but thought I could at least introduce the concept to other newbies.

The premise is a way to use little of your own money while growing a buy and hold portfolio. In its simplest form, it stands for buy, rehab, rent, refinance, then repeat. We are still in the “buy” phase of ours, set to close this week, and excited to move into the rehab piece and plan to share the full details once we wrap up this project. We are going to just use some rough numbers here as an example.

Let’s say you find a distressed house or a homeowner who needs to get out fast of their current home. There’s lots of ways to find these deals, which I’m not going to cover in this post, but will save for another day. The distressed home or owner is an opportunity for you to help solve their problem and to buy their house from them. You would aim to acquire low, due to current condition of the home, taking into consideration all of the repair costs, and your ability to close fast. You would also need to make sure all of the numbers truly work for a BRRRR. But let’s say you can get this house for $30k and it needs an additional $30k in renovations. You use your own money, private money or hard money for the initial purchase and rehab (also lots of funding options I will also save for another post).

You know from looking at comps in the area (not houses for sale, but comparable houses that have already sold recently) that the ARV, or “after repair value” is around $100k. You have also checked average rents in the area, and know it will rent for $1,000 a month. So, after you rehab it and rent it out, then you go to a traditional bank for a cash out refinance on the property at $75k, and you pay yourself or your private money lender back and you now have none of your own money tied up in the deal and have acquired an asset with 25% instant equity. You have a tenant placed and are now cashflowing a few hundred bucks a month after your mortgage/expenses. You also walk away with a $7,500-10,000 profit (after closing/holding costs).

You keep repeating this process until you get to your buy and hold end game number, whatever that is for you. Work until the cashflow covers your monthly expenses to live, then you can sit back and enjoy your time freedom from your rental portfolio, or you never quit…completely up to you. 🤷‍♀️

I know I’ve simplified the process, but that was my intent. There are a TON of resources out there, including lots of investors using this strategy and sharing their successes/learnings, lots of podcasts, and even some books, so go do your research and dive deeper to fully understand. I would also love to hear input from others out there who are ice cold BRRRR experts. I just love this strategy and I hope sharing from my real estate investing toolkit will help you either get interested in getting into real estate, or help you to strengthen your current investing game.

Value Based Budgeting

I know I’ve shared in the past that I am a big fan of the zero budget, which means that before each month starts, I go count every single penny I will have coming in, compare it to what’s going out, plan for any variable expenses for the month, and then put the rest to work. Since paying off the last of our debt, these remaining funds have grown as high as almost 70% that I am using to fund our real estate portfolio and other savings/ investment goals. When I put that all in writing, I know some of you on the FIRE journey (Financial Independence Retire Early) are probably pretty in line with this strategy and aiming for the same, or maybe already achieving it.

I also realize for someone who is anti-budgeting or brand new to budgeting, then my current path probably seems pretty extreme and even intimidating. Just know that I didn’t start here..I started somewhere though, and sometimes just getting started is the hardest part. So I have a middle ground solution for those that just want to dip the very tips of their toes into figuring out once and for all the following two things without counting every penny 1) where is my money going and 2) is that where I want it to go?

So here is a really quick and easy way, inspired by the book “Your Money or Your Life” By Vicki Robin. If you haven’t read this book, please do yourself a solid and follow the affiliate link below and pick up a copy, and maybe grab a few extra for gifts. It is a very influential book that will CHANGE YOUR LIFE.

https://amzn.to/376Bipl

One way to get started thinking about the two questions posed above is to make two lists. One should include your top 3-5 things that you value, and the next should list your top 3-5 things you spend the majority of your money on each month. That can give you an idea on if your values align with your spending each month. For your first time doing this, you should expect some room for improvement, so don’t be too hard on yourself and just focus on how you can get better. Before any purchase, simply ask yourself “is this aligned with my values?” If the answer is no, put that delivery menu up or put that shirt back on the rack.

Want to really make some value based budgeting and spending become your new normal? Another eye opener activity to help with this is to go back and add up how many hours you have worked for all your life and how much earned income over your lifetime you have made, and then compare it to what you have in savings/investments/assets. Is there a huge deficiency? Great way to see how all those little things quickly add up. Find 3 ways right now that you can start keeping more of your money and write them down.

Does anyone else currently do value based budgeting?

7 ways to increase your net worth

I posted back in May with our first 6 month check in on our net worth, and I cant believe another 6 months has passed since that first post I made on this topic. Here we are though, so you know I had to do some reflecting on our progress. I knew that we had made a lot of money moves, but I was like damn girl..go on with your bad self. 💃🏻 I was very happy with seeing a 58% increase since this time last year, and wanted to help others with ideas on how you can do the same!

So, how did we do it?!

1. Goal Crushing-Did you know that you are 42% more likely to achieve a goal JUST BY WRITING IT DOWN?? This is one of the easiest ways to increase your net worth, or really a way to change anything in your life, even outside of finances. You’ve heard me talk about always having 2-3 goals and then a few “micro goals” to help you break it down and make a plan to get to those bigger goals. Go ahead..go get your paper and pen..I will wait. 📝

2. Becoming Debt Free-It’s always nice to increase those assets, but make sure you are decreasing those liabilities first. See number 1 if you aren’t sure how to become debt free and also do some research on debt snowball vs debt avalanche. While we are on this topic, please promise yourself that you will stop adding new liabilities. 🙅‍♀️

3. Investing in myself-Two years ago, I only read two books the whole year, and I used social media as a rabbit hole of memes and scrolling through pictures of people that I didn’t even talk to in high school, binge watching Netflix, drinking several nights a week and I listened to a ton of murder podcasts and rap music. This past year, I have read almost 40 books, created a community of sharing and encouraging others changing their lives through financial literacy, stopped drinking, started exercising more consistently, and I still listen to murder podcasts and rap music, but sprinkle in podcasts about financial independence and real estate investing also. 📚😎

4. Buying real estate-Did you know that 90% of self made millionaires grew their wealth through real estate? Refer to numbers 1,2, and 3 above or refer to my previous posts on real estate if you’re not sure where to start.

5. Investing in our 401k’s and other tax advantaged accounts-If there is a match and/or tax advantages, that’s a good indicator you should be maxing these out. If maxing all of your options out seems like a lofty goal that makes you want to stop reading anything I ever write again, then please start with the employer match, then next open a Roth, then contribute to your HSA. You can choose your contribution amount, sometimes as little as $50, and even pause contributions if needed. Always remember that something is better than nothing.

6. Lifestyle Design-Read my previous post on lifestyle design vs lifestyle creep. Inflating your expenses to match your income is a silent wealth deflater. It’s easy to let your WANTS slip into your NEEDS category. Trust me..I know because I was guilty at one point myself. 🙋‍♀️ Once I got real real honest with myself, we were able to cut out unnecessary expenses that weren’t in line with our values, got back to basics and are now sitting at a 66% savings rate. 🙌🏼

7. Increasing self worth-Not only should you focus on increasing net worth, you should focus on increasing self worth. I promise you the two go hand in hand. Leave behind those limiting beliefs that are holding you back already-bye Felicia. 👋 You ARE amazing and you CAN blaze your own damn trail and you CAN become whatever you want to be..yes you!

What are you waiting for?? Go get you some worth. 😉

Rental House #2 Details

Our newest tenant moved in on October 1st, so I figured it would be a good time to stop slacking and post the details. This one has a funny story with it. House #1 we bought on location location location, and house #2 is no different, being an adorable 2/1 that’s walking distance to a cute downtown with shops and lots of activities like a farmers market on the weekend. Turns out I totally have a type. 😂

First off..let’s talk money, because I know y’all are nosey like me..lol. Since we are paying the mortgage on house #1 out of our own money. (we no longer have daycare, so replaced that payment with the mortgage payment) This allowed us to use the rent funds from house #1 to fund the down payment of house #2. Our tenant for house #1 had paid the whole year up front, which was around $10,000, so talk about creative ways to leverage other people’s money. I decided to put that money to work, instead of letting it just sit in our account being lazy. 🤷‍♀️

We found house #2 and put an offer back in June that was like $12k under asking, but a fair offer based on comps in the area. They didn’t accept it, and they ended up having someone else back out due to finances falling through. I found out because I was creeping online looking for the next deal and saw it pop back up on MLS. Funny part, they ended up dropping the price to the same amount we originally offered. So we decreased our offer by a few grand, and the seller accepted it. Should have just accepted our first one. 💁‍♀️

So total purchase price was $86k and we put 15% down, so around $13k to closing and our monthly mortgage payment is $595. We are renting it out for $875, so around $225 cash flow after mortgage and property management. For the property manager, we will pay around $50 a month, and one month rent for the initial showings and tenant screening. We didn’t have much of anything to do or money to spend to get rent ready, besides a whole lot of magic erasering and replacing the nasty toilet. 🤢

The tenant did ask if she could install a garage door opener (with her own money) and we told her no that we would not only cover it, but we would send our guy to do the install. She works crazy shifts and said she would feel safer being able to pull right in late at night. I honestly didn’t even notice it didn’t already have an opener and felt bad. Before she moved in, I did get a bid for converting the one car garage to a bedroom and think I will save up the cash flow to pay for that renovation after this tenant. We may even get crazy and attempt this project on our own. 😉

A few things I learned through this one.

1. Life was really busy when we got this one, so I enjoyed not having a lot of random little details like trim painting or landscaping or really anything to do, but I also feel like I’m ready to roll up the sleeves on the next one. 💪🏼

2. I am excited about the potential to increase the value and rent through adding a bedroom. It would only take about 2 1/2 years to recoup the project expense through increased rent, and that doesn’t even cover the added value that we could then use to BRRRR, just with a few of the r’s switched around in there. 😜

3. I’m so glad to have started the tenant move in baskets. It went over well and sets a good first impression for under $20.

4. I am feeling a little uncertain about the property management portion, and think we have learned a lot since we first started. I know we can handle on our own and my husband thinks opposite. So I’m working on my persuasive speech for self management on the next one (I can’t wait to report back on who wins this one).

5. I am ready for the next deal..since you know my type..who’s got it??

The Debt Epidemic

🚨Keepin it real rant ahead🚨

This is us..this is America..scary huh? What if I told you that we are all responsible for this culture of debt and living above our means and we all have to contribute to putting an end to this. It’s hurting us, our kids, our health, our planet, it’s an epidemic and I wish more people were feeling terrified about the topic. It just keeps getting worse each year, small credit card purchases, car payments, student loans, slowly adding up to over $13 trillion. 💳

Who’s ready to break the cycle?? And I don’t mean just pay off the minimums and maybe a little extra to continue to be a slave to debt for the rest of your life. I don’t mean to just do a debt consolidation or home equity loan or line of credit to pay off..because debt is still debt..whether it’s paying ten different people or paying one. And now that you’ve consolidated, guess what, you’re probably just going to add MORE debt now that you’ve freed up those credit cards. 🤷‍♀️

Your past will continue to haunt you if you aren’t ready to take a long hard look in the mirror and realize that YOU created this mess, and YOU have to do the hard work to not only get out of it, but STAY out of it. You have to STOP talking about how you don’t make enough money, you’re just barely scraping by and don’t have any extra to pay, maybe once you pay off the car or once you get that tax return you will, or once you get a raise you will, you are lying to yourself. STOP playing the victim and STOP making excuses for your spending habits. You’re only hurting yourself.

Also, those student loans, yeah those suck just as bad as the credit cards, but you CHOSE to go to school and you took them out, so guess what? You owe it..so PAY that shit back already!

YOUR kids SEE you living that lifestyle, and they HEAR you fighting about money, and they FEEL your stress at the end of the month when there’s not enough paycheck to go around. They see you treating yourself “because you earned it”, and they are learning that shopping makes everything better..new stuff will take away that rough week..only it wont.

Harsh words, but let me ask again..who’s ready to break the cycle??

Lifestyle Choices

This is going to be one of the hardest topics yet to cover at a very high level and also my first mention of FIRE in my writings (financial independence retire early). My goal is just to inform you of two choices and get you rethinking, especially if you feel like you don’t have choices and are stuck in your current financial position. I am by no means claiming to be an expert on the topic or to get into the HOW in this post. I have just dabbled with both lifestyles mentioned and I feel like there are not enough people (especially women) who are thinking about or providing information on the topic..so looks like you are stuck with me. 😜

The above picture is the best way I could summarize the concept of lifestyle creep. For now, as mentioned, this is just to introduce you to the topic, so I have a few stats and thought provoking questions to hopefully do so.

First..the stats tell an alarming story. I recently read in this USA Today article https://amp.usatoday.com/amp/34378157 that the average household is bringing in around $75,000 annually, and of that, they are spending 90% of it, which equates to $67,500 outgoing and only around $7,500 extra annually. (which the article states a lot of this is going towards interest payments on consumer debt). This breaks down to $5,625 in expenses each month and $625 extra. That doesn’t leave much wiggle room and helps paint a picture as to why people aren’t putting anything or very little towards saving, investing, emergency funds and retirement. 😳

Essentially pointing out that people are living a paycheck to paycheck lifestyle. I don’t know that this was a surprise to any of us, but it may be a surprise that people are making the choice everyday with their actions and spending habits to live this way. Disclaimer that there are people living in poverty, so for the sake of my post, I am referring to the middle class mentioned above.

Now on to the questions. Feel free to answer in comments if you want to share, or just answer to yourself or as an internal conversation or with your significant other. Keep it real because denial is a great way to protect yourself from the truth right now, but long term in fact it just ends up hurting you more.

1) Are you living paycheck to paycheck like the scenario mentioned above?

2) Have you noticed that no matter what you do, you just can’t get ahead?

3) Do you receive regular raises or have you changed jobs to make additional money over the course of your career, yet you aren’t seeing a difference in your monthly budget after expenses because they always seem to match what’s coming in?

4) Do you ever pay attention to how much you spend on conveniences like pre-made food, someone to mow your lawn, someone to clean that big house, someone to wash that new car, someone to groom your dog, someone to do your hair/nails/makeup, etc because you are too busy working to do these things?

5) Have you ever wondered why things are like this for you and probably a lot of people you know, yet it’s still a taboo topic to discuss money, so everyone just keeps working harder and staying in the vicious cycle mentioned above?

6) What will happen if you change nothing and keep following this path?

Please reference the above picture as you are going through these questions to see if lifestyle creep has found a way to creep into your life. Remember..be honest.

Next, know that there is another option. As mentioned above, lifestyle creep is a choice and I’ve said this so many times on purpose. So many think they have no choice unless they make more money and this is far from the truth.

Lifestyle creep is a path that many in our society have walked and not challenged until recent years. Here are some questions to ask yourself and see if you’re one of those ready to challenge the traditional path and choose a different way.

1) What upsets you the most about always being broke and living paycheck to paycheck?

2) How has constantly feeling stressed from working so much and not having any money to show for it affected you?

3) What are your values and what are you spending your money on? Do they line up?

4) What are your passions and what do you dream about doing?

5) What could change if you have an open mind and put in the work, I mean really put in the work, to change your current financial path and mindset? Think of one quick and easy way you can change today.

6) What will happen if you start to live a lifestyle designed by you instead of others?

As mentioned, a lot of people have started looking at the above stats and questions, and are starting to make the decision to customize their lifestyle based on their own unique values, not what society tells them to value. Spoiler alert..it’s not through making more money as mentioned above..it has never been about that. It’s about a lifestyle of being content with only those things that bring you value. Luckily, it usually don’t cost anything at all, just the basics needed like food, shelter, experiences and none of the extra crap. 😊

Don’t get this lifestyle design twisted with a life of going without, because it’s actually the opposite of that. You have room for so much more when you let go of stupid shit.

Well..shocker..I have lots more to say but I’ve said enough for one day. What are your thoughts or questions on the two different paths mentioned above?

This is us

I thought with all the new followers, it’s a good time to re-introduce the magic behind mysemibasiclife (you read that right..I totally referred to myself as the magic). To celebrate, my daughter humored me with a photo shoot, and my favorite was one of the bloopers. 😜

Sometimes life is more about what happens behind the scenes, between the “perfect” pictures, when you’re trying to pose and get the best lighting, hide that lazy eye, those wrinkles and those frizzy grey hairs. She captured all of these things, all of my imperfections, including crows feet I didn’t even know were there. How fitting to show my imperfections to all of you who have been following along on my imperfect journey to financial freedom. This is me..always laughing at my own jokes, never taking things too seriously, currently staring off into space like only a true dreamer can do. 🤷‍♀️

This is the entire family that puts up with my latest crazy schemes, understands the bigger picture behind those crazy schemes, sometimes appreciates my hilariously witty comments and penny pinching ways, and packs in the car with me for that fifth trip to the library in a two day period. 😂

You weren’t there for the early years, the dark debt days 😬 where we were living beyond our means and got ourselves into a financial spot where all of our paychecks were going towards debt. But you have now followed along as we ditched the debt, got rid of car payments and paid our last student loan off, which puts us at a grand total of $165,000 in consumer debt paid off!! You’re following as I am feeling weak, but holding strong and halfway through my #nospendyear. You followed along as we bought our first rental property and are following along now as we now search for the next one. 👀

We are excited to continue sharing our life after debt journey, including our ever changing goals, working on growing our net worth, celebrating the success, overcoming the setbacks, and the blood, sweat and tears along the way as we define what financial independence looks like for our family. 🔥

Enough about us though..I want to hear from you..what’s your story? What topics that I’ve covered have helped or would help you along your journey?

What questions do you have for me?

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Be a Goal Getter

I don’t care who you are..you need goals. Think of the old cliche saying that totally applies here..how are you supposed to get where you’re meant to go if you don’t know where that is? I firmly believe that if you take everything else out of the equation, mindset and goals are the biggest drivers of if you will or won’t do something. It also doesn’t matter if you’re on a different path than me and think I’m crazy for my recent FIRE movement 🔥, you still need goals and the right mindset for whatever your movement is, whether financial, personal, professional, relationships or health related.

Don’t be a flake and say something vague like “I want to pay off my debt” or “I want to lose some weight”. If that’s your goal, then you may as well replace it with “I don’t want to accomplish anything ever” and just get excited about carrying around those extra 15 lbs and all that consumer debt for the rest of your life. We wouldn’t have paid off all of our debt and bought our first rental by being flaky..period.

Instead, set yourself some SMART goals for whatever you are trying to achieve. Stop and brainstorm your life, past present and future state. I know everyone is “busy”, but sometimes you have to make it a priority to stop and reflect. Think about tomorrow, end of the year, two years from now, and maybe even think even farther, like 5-10 years from now. With us being halfway through 2019, it’s also a good time to look back on the past six months. What do you see? Do you like what you see? What will happen if you continue the way you are? Will you get where you want to go?

After you think about your path and your big picture, which will be different for all of us, think about 3-5 micro goals over the next 6 months that will help you get that much closer to your big goal. Get all high tech and write them on a post it and put them on your fridge…where you see them every day. 👀 (bonus points if they fall off all the time so you have to look at them even more when you pick them up off the floor)

As you can see, I have crossed out and updated a few of mine when my priorities shifted and opportunities came my way that altered my original timeline. Be ready to adjust as life comes at you, but even when things don’t go as planned, don’t ever give up. Remember to set your goals high enough to push you while making sure they are also attainable with some focus and hard work.

Don’t forget to stop and celebrate your successes as you hit your goals. Then make sure you continue to set new micro goals to get you that much closer to where you want to be! We need to think bigger and get some new goals since we’ve already paid off the student loans, currently looking for our second rental and also pretty sure we have increased our net worth by $25k just in the past few months. So I’m curious..what are some goals you have crushed and what are some that didn’t go so well?