Enjoy my 20s or invest?

19 Replies

Howdy everyone! 

I am currently a student at Texas A&M and I will be graduating in December. I am OBSESSED with BP podcasts and am recently new to the forums which has facilitated and grown my love and passion for real estate. I have many goals when it comes to real estate and I know in order to reach those goals I need to "live like no one now, so that later I can live like no one" -a quote often said by Mendy. I have no problem with living frugally and smart in order to make my dreams of owning rental properties come to fruition, however the one thing that has been on my mind lately is whether or not I should step off the breaks a little bit and try to enjoy my 20s (obviously you need money to enjoy yourself i.e. travel, vacations, etc.) or if I should just hit the ground running post graduation and save save save so that I can invest and get started with real estate sooner. I know the longer I wait the more it probably won't happen because I will have a family eventually.   

I just wanted to hear from experienced and more wiser investors on if they think it really is worth it to enjoy myself while I am young or if I should stay on track and save money and get into real estate so that later in life I can retire earlier and enjoy myself then???

Any Advice would be so greatly appreciated. Thank you for taking the time to read and respond to a 23 year old with big dreams! 

@Stephanie Money . Great name - you're destined for greatness - I'm sure!

Set goals or objectives, and work toward them. One of my goals when I was younger was to increase my Net Worth by XX Dollars per year. This came about sometime by Appreciation of my investments, others years by exceeding my goals in Real Estate Sales, etc. 

There is a time for work and a time for play! I'd say GO for both in Moderation! Work - Work - Work is destined to make you a dull burned out young lady and a less than optimum employee. Set a goal to do XX (Travel / Visit) as reward for accomplishing your goal of BLANK.

Above all else, don't scrimp on investing in yourself. You are your most important product. I've seen REALTORS who wouldn't blink an eye about spending several thousand Dollars for a new Laptop Computer, but wouldn't spend $500 to attend a Seminar that could make them thousands of Dollars.

Good Luck and Gig'em! 

Originally posted by @Jim Cummings :

@Stephanie Money. Great name - you're destined for greatness - I'm sure!

Set goals or objectives, and work toward them. One of my goals when I was younger was to increase my Net Worth by XX Dollars per year. This came about sometime by Appreciation of my investments, others years by exceeding my goals in Real Estate Sales, etc. 

There is a time for work and a time for play! I'd say GO for both in Moderation! Work - Work - Work is destined to make you a dull burned out young lady and a less than optimum employee. Set a goal to do XX (Travel / Visit) as reward for accomplishing your goal of BLANK.

Above all else, don't scrimp on investing in yourself. You are your most important product. I've seen REALTORS who wouldn't blink an eye about spending several thousand Dollars for a new Laptop Computer, but wouldn't spend $500 to attend a Seminar that could make them thousands of Dollars.

Good Luck and Gig'em! 

Jim, 

Thank you so much for your reply, it is truly valued! I like the idea of rewarding myself once my goal is reached. I think that will help keep me on track, but also not miss out on life.

 

Originally posted by @Stephanie Money :

Howdy everyone! 

I am currently a student at Texas A&M and I will be graduating in December. I am OBSESSED with BP podcasts and am recently new to the forums which has facilitated and grown my love and passion for real estate. I have many goals when it comes to real estate and I know in order to reach those goals I need to "live like no one now, so that later I can live like no one" -a quote often said by Mendy. I have no problem with living frugally and smart in order to make my dreams of owning rental properties come to fruition, however the one thing that has been on my mind lately is whether or not I should step off the breaks a little bit and try to enjoy my 20s (obviously you need money to enjoy yourself i.e. travel, vacations, etc.) or if I should just hit the ground running post graduation and save save save so that I can invest and get started with real estate sooner. I know the longer I wait the more it probably won't happen because I will have a family eventually.   

I just wanted to hear from experienced and more wiser investors on if they think it really is worth it to enjoy myself while I am young or if I should stay on track and save money and get into real estate so that later in life I can retire earlier and enjoy myself then???

Any Advice would be so greatly appreciated. Thank you for taking the time to read and respond to a 23 year old with big dreams! 

 Howdy! Love A&M.

It depends on what you want to be in your 30's. Set the clock ahead and look back. You are 39 - have you done what you want to do? You have to plan your direction after college the same way you had to plan to get into A&M. And the biggest regret people have regarding real estate is not getting started earlier than they did. 

I was married with kids by 22 and I don't feel like I "missed out" on anything (traveling, partying, etc), but everyone is different. I just wish I had known what I know now about RE and house hacking. I could've been so much further ahead. If your plan is to have a family one day, I would invest now so you can be financially free and spend a ton of time with your kids and travel with them when the time comes. 

Also, it's easier to devote the time and money to investing before you have kids. And you also don't have to worry about your significant other being on board with it if you're already established. Check some of the posts about trying to convince a spouse to want to invest and you'll see what I mean. lol

@Stephanie Money welcome and GIG EM! From a fellow Aggie to another I will be as transparent as anyone ever will be.

I left A&M to go work in San Antonio rather than Dallas for a better of a relationship which ended mere weeks later. I fell into real estate after that - Rich Dad Poor Dad, BP, books galore - you name it. I've been into real estate investing for just about 4 years - but I didn't jump in until I moved to DFW about 2.5 years ago (financing reasons). I've since purchased multiple MFH and SFH and it's taken me down a crazy path. I no longer use my Bachelors & Masters and still have the opportunity to enjoy my 20's (and now 30's having just turned 30).

With all of that being said - I definitely believe that the bigger your sacrifice... the bigger your overall return will be. I've lived in a duplex and a 4-plex... and I would have to admit that not many people my age would have wanted to live where they're located. But now I have two tremendous cash flowing MFH's. I've also been able to travel to Peru, NZ, Australia, Europe and plenty around the states. I believe there is a fine mix of pleasure and sacrifice that you will have to find in your life. The issue I see with a lot of people is they are so stuck in analyzing deals that they never take the foot forward and invest. I actually know someone off of BP who asked me to help them invest, then got pregnant, then moved in with their parents... fast forward 2.5 years and they're pregnant again and are going to be renting for the foreseeable future. It's unfortunate but that's the life path they choose - and NOTHING wrong with that!

Honestly the easiest way to jump in is to purchase a primary residence (MFH or SFH) as long as it's a smart purchase. That's how I got started.

I think you'll here both sides of the coin on this topic.

But the sooner you start the easier it will be to start the snow ball effect. Start with one then another one in two years time, by 30 you could have five properties and I don't think you'd be missing out on life. BUT wait until you're 30 and have nothing then you need to catch up on the last seven years. 

If you like to travel to a specific location, buy an investment property in that location. LEAST the trip will be a tax deduction to go check up on your property

@Stephanie Money "living it up" in your 20s is so overrated. I started investing when I was 21 and everyone and their mothers told me to just enjoy myself. I won't lie, there were countless nights where I missed parties, tears because I wasn't sure if I made the right investment move, and friends that I lost because "I didn't spend enough time with them" (good riddens). Fast forward only 3 years, I'm 24 now. I have it all, really, I am so blessed and I wouldn't have any of this if it weren't for real estate. Hustle when you're young and able. I'm planning my trip to paris and Rome next month while a lot of people my age are swiping their credit cards and building debt on white claws (no offense, to each their own lol).

Well done man. You'll never look back and wish you'd delayed getting financially free. The "instant" generation is going to be the sad, poor, old generation in coming decades.  I have never understood why most people don't "get" the need to set themselves up for retirement without relying on a government.  To me that is like letting your 3 year old do all the maintenance on your car, NOT GOING TO END WELL!

As another 20-something investor, here's my thought process. 

In the grand scheme, you won't be missing out on anything that you won't be able to do later on in life; given you actually achieve financial freedom with the time you dedicate to it at a young age (i.e. in your twenties). 

Think about it. If you can pass on (most) nights out drinking, (expensive) traveling, and going to (most) concerts in your twenties to be frugal and buy properties/invest, then when you're in your late twenties/early thirties you will be financially free enough to do all of those aforementioned things on a larger (better) scale. 

Examples: 

  • Instead of getting general admission tickets to a concert, you'll be able to buy back-stage access and meet the artist
  • Instead of going out to your local dollar-beer night on Thursdays, you could afford to go out and get bottle service (if that's your thing) 
  • Instead of going to Chipotle for lunch religiously, you could take all of your close friends to a more expensive restaurant on you- without having to think about it
  • Instead of backpacking across Europe and eating ramen the whole time, you'll be able to travel comfortably and experience whatever intrigues you, passing up on nothing (again, if that's your thing)

These are just quick examples off of the top of my head, as they are the things that I myself end up 'passing' on most frequently. That said, if you view it with intention outlined above then you won't really be 'passing' at all, and it becomes more like 'trading'- looping it back to Mindy's excellent quote on living now versus later. I'm happily going to trade all of those 'left list' items for the ones on the right, and more importantly the sense of achievement that I get from being on the grind now while everyone else focuses on making excuses and 'enjoying their youth'. 

It's critically important to note that these things are not mutually exclusive. Doing both is very possible. I know you are aware of this reality because you say you're frugal already. In short- take the plunge; you'll be glad you did.

Originally posted by @Stephanie Money :

Howdy everyone! 

I am currently a student at Texas A&M and I will be graduating in December. I am OBSESSED with BP podcasts and am recently new to the forums which has facilitated and grown my love and passion for real estate. I have many goals when it comes to real estate and I know in order to reach those goals I need to "live like no one now, so that later I can live like no one" -a quote often said by Mendy. I have no problem with living frugally and smart in order to make my dreams of owning rental properties come to fruition, however the one thing that has been on my mind lately is whether or not I should step off the breaks a little bit and try to enjoy my 20s (obviously you need money to enjoy yourself i.e. travel, vacations, etc.) or if I should just hit the ground running post graduation and save save save so that I can invest and get started with real estate sooner. I know the longer I wait the more it probably won't happen because I will have a family eventually.   

I just wanted to hear from experienced and more wiser investors on if they think it really is worth it to enjoy myself while I am young or if I should stay on track and save money and get into real estate so that later in life I can retire earlier and enjoy myself then???

Any Advice would be so greatly appreciated. Thank you for taking the time to read and respond to a 23 year old with big dreams! 

 Why can't it be both! You can enjoy your time by living within your means, but still saving up for that first RE investment! 

You wont miss out on anything lol i put business / investing first, much more fulfilling 10X compared to anything else. You can get really Fit / Party like crazy at the same time, it wont take away from business / investing. There is plenty of time, just do things faster during the day, everyday, and its more do-a-ble if you do it 7 days a week, its much easier. 

I was on R&R in Bali at 20 but already had my 1st run down rental that I got 'owner hold' for $2400. Had to put my money somewhere!!

Sold it 'as is' for $4800 & then bought more barely livable junk renting rooms to Uni Students so I was hooked. 

Thank you so much for your reply. It helps me put everything into perspective and realize that I do not have to miss out on everything, but have to be wise as to what I choose to do. Again, thank you Brandon

Originally posted by @Brandon Frulla :

As another 20-something investor, here's my thought process. 

In the grand scheme, you won't be missing out on anything that you won't be able to do later on in life; given you actually achieve financial freedom with the time you dedicate to it at a young age (i.e. in your twenties). 

Think about it. If you can pass on (most) nights out drinking, (expensive) traveling, and going to (most) concerts in your twenties to be frugal and buy properties/invest, then when you're in your late twenties/early thirties you will be financially free enough to do all of those aforementioned things on a larger (better) scale. 

Examples: 

  • Instead of getting general admission tickets to a concert, you'll be able to buy back-stage access and meet the artist
  • Instead of going out to your local dollar-beer night on Thursdays, you could afford to go out and get bottle service (if that's your thing) 
  • Instead of going to Chipotle for lunch religiously, you could take all of your close friends to a more expensive restaurant on you- without having to think about it
  • Instead of backpacking across Europe and eating ramen the whole time, you'll be able to travel comfortably and experience whatever intrigues you, passing up on nothing (again, if that's your thing)

These are just quick examples off of the top of my head, as they are the things that I myself end up 'passing' on most frequently. That said, if you view it with intention outlined above then you won't really be 'passing' at all, and it becomes more like 'trading'- looping it back to Mindy's excellent quote on living now versus later. I'm happily going to trade all of those 'left list' items for the ones on the right, and more importantly the sense of achievement that I get from being on the grind now while everyone else focuses on making excuses and 'enjoying their youth'. 

It's critically important to note that these things are not mutually exclusive. Doing both is very possible. I know you are aware of this reality because you say you're frugal already. In short- take the plunge; you'll be glad you did.

 

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Everything is about balance, and what you perceive to be life fulfilling. Prioritize in finding a good stable job with benefits. Use your money wisely save and invest! You can start investing with opening an online savings account that yields 2%. (Better than nothing) You can opt out on all the money you spend if you were to go out every weekend and instead spend the money on a nice vacation every year. I've traveled to about 8 different countries in my 20s and still been able to save. It doesn't have to be expensive. There are alot of credit card promotions out there that can save you a ton of money and you can use to your advantage when used correctly. (Free flights, free hotels) You just have to be responsible and not get into debt. There are also great deals for travel. (Flew to paris this past july one way for $150) Your 20s are your best years and I would actually advise you to travel the world and experience life. Time is the most important asset. You can afford a nice vacation EVERY year if you can manage your money correctly. (Learn to invest and build while you are saving for your first real estate deal) Message me for any advice. Good luck!

Originally posted by @Stephanie Money :

Howdy everyone! 

I am currently a student at Texas A&M and I will be graduating in December. I am OBSESSED with BP podcasts and am recently new to the forums which has facilitated and grown my love and passion for real estate. I have many goals when it comes to real estate and I know in order to reach those goals I need to "live like no one now, so that later I can live like no one" -a quote often said by Mendy. I have no problem with living frugally and smart in order to make my dreams of owning rental properties come to fruition, however the one thing that has been on my mind lately is whether or not I should step off the breaks a little bit and try to enjoy my 20s (obviously you need money to enjoy yourself i.e. travel, vacations, etc.) or if I should just hit the ground running post graduation and save save save so that I can invest and get started with real estate sooner. I know the longer I wait the more it probably won't happen because I will have a family eventually.   

I just wanted to hear from experienced and more wiser investors on if they think it really is worth it to enjoy myself while I am young or if I should stay on track and save money and get into real estate so that later in life I can retire earlier and enjoy myself then???

Any Advice would be so greatly appreciated. Thank you for taking the time to read and respond to a 23 year old with big dreams! 

 If your goal is to wait until X age to start investing, or start making money, then you will always find reasons not to start.

It gets more difficult not less difficult to reign in your spending, after you have started to spend, and after you have gotten married, had kids, sent kids to college etc etc.

Here is the thing, buy a house hack early, right out of college, and let that start working for you.  Its the compounding effect that makes you rich, and its the time value of money you cant get back.  Keep your spending where it was while you were in college, you really wont miss it.

My biggest mistake was not sticking with buying a new property once every year or two out of college.  We got serious about it way late in life.  I wish I had that 10-20 years back.  I wouldn't need to work now.

Also I think you are making either or statement, invest now, OR enjoy my 20's, how about both?

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