I had a brainstorm the other day. Hopefully, it will catch on like wild fire and people all over this country will enjoy the prospective windfall benefit.
It all started when one of our clients said how tough it was for her to come up with her auto insurance premium every month. Nevada requires car owners to have a certain level of coverage. The state doesn’t give a darn how hard it is to come up with the premium. My idea solves this particular dilemma.
Just for the record, in Nevada, the minimum required coverage is 15/30/10. The minimum required coverage may be different in your jurisdiction. Regardless, the requirement is still there which means it has to paid for one way or another. Almost like a forced mortgage one could say.
Before you ask what does this have to do with real estate, indulge me and keep reading. It has a lot to do with putting your mitts on investable dollars.
A Thought Theology Anyone Can Use
This lady’s monthly premium is only $40. Couple this with the fact she has a full time job and one would wonder how can it be tough to come up with $40 to pay for one of life’s mandated necessities. After all, it is part of her monthly financial fabric.
As it turns out, she, like many of us, doesn’t pay attention to the minutae in our paycheck. We simply step over those dollars without much thought. I can’t remember exactly how the term redirected dollars entered the conversation but when it did, the light flashed bright in my mind and a concept was born.
Since this lady was really bemoaning the fact that she had a hard time saving – putting that $40 aside to pay her premium – I mentioned something to the fact that she should think of it as redirecting her dollars.
I went on to say that in my opinion saving has taken on the same connotation as budgeting. Both words are meaningless if not downright negative in people’s minds. Given that is true, let’s call it something else. Hence, redirecting dollars was born.
For example, if instead of spending $100 to $200 a month on outside of the house eating, we redirected those dollars into an interest bearing account, we would grow a pool of dollars. What we did with those dollars after a given length of time is of course up for speculation.
Pool of Dollars
However, what isn’t up for speculation is the fact that a pool of dollars would be building for some future disposition. Mind you, a person doesn’t have to be in the lower income brackets to perform dollar redirection. Successful real estate investors do it on a regular basis or they won’t remain successful for long.
Truth be told, they more than likely have today’s profits earmarked for properties two, three and maybe even four. They have the luxury of not worrying about a two digit number because they are playing in the five and six digit league.
But, back to the point. Let’s suppose you are a person who just heard about this real estate as an investment idea. It sounds intriguing but you have minimal savings and minimal cash flow. What can you do to get started?
The first step is to educate yourself. That means reading every book in the local library on real estate investing and browsing your local bookstores. You will more than likely buy a book or two. They can be paid for with your redirected dollars.
The Birth Of Your Dollar Pool
You probably stop at the snack/vending machine and leave a minutae dollar or two every day you are at work. Do this five times a week and you just spent a real estate book. I bet you get the idea so a list of what I call minutae dollars isn’t necessary.
Redirect the vending money into your education. The education material you buy is your foundational dollar pool. You see, the money potential the education material lays out for you can be as high as you are willing to build it.
By no means does your dollar pool have to be in the bank in the form of cash. I mentioned that way only because it is the conventional way most people think.
As we all know, it can still be in real estate. In fact, given the current situation, I say you can lay the ground work for a healthy dollar pool if you invest in real estate. But, I am biased in that direction. If you aren’t, put your money in the bank.
Remember, with birth comes growth. How you grow is dependent on many factors. In real estate, growth through books, articles, seminars, etc. is important to forming a successful plan.
I’ll quit at this point and let my newest term sink in. Heck, it all boils down to mind over matter. If you don’t have a mind to do it, it won’t matter anyway.