Summary: We didn’t get it right the first time around, but we’re going back to school – financial education edition! This is the wealth-building, freedom-forming knowledge you WISH you knew before, but it’s not too late. Let’s take back control of your future!
Growing up, it seemed like the important parts about learning how to “adult” were trading our time for money and working our lives away with the same hours, at the same place…forever.
Oh! And don’t forget to give a lot of that money away in taxes and save the rest for a nearly impossible retirement. 😝😝
What kind of a life is that??
Not one that sounds like any fun, or offers much hope at all.
That’s because the financial education we’re given as young people really tends to fall short of what will truly help us build financially successful lives and futures.
👉 Get this…64% of American adults say that finances are a major stressor in their lives. And sure, that makes sense when you consider that 4 out of 5 young people fail financial literacy tests these days.
That just shows that the education around personal finances is lacking, big time. No wonder we always thought we had to just live paycheck to paycheck, and that would be as good as it gets! That’s just all we knew.
But luckily, we have found a MUCH better way, through the beautiful path of passive income. 🤩🤩
If you’re like us, and have had enough of unhelpful financial mis-education, it’s time to take back control. Today we’re covering what you actually need to know, to create a future of freedom while still enjoying your life right now.
Come with us as we travel back to school. But it’s not like other schools…it’s a FUN school that will help you gain real confidence in your financial decisions.
You’ll learn 5 short lessons today, all of which will point you towards financial success!
- 1. Liabilities and assets – what’s the difference?
- 2. How to use leverage the right way
- 3. Your focus should go where cash flows
- 4. Increase wealth through tax efficiency
- 5. It’s simple…your life, your future, YOUR decisions
1️⃣ Liabilities and assets – what’s the difference?
Okay, for our first lesson, we’re learning how to tell the difference between liabilities and assets. And listen, you might THINK you know what sets these two apart, but we’re about to challenge that thought a bit.
Think about your home, if you’re currently a homeowner (if not, just play pretend for a sec).
Is the home an asset or a liability? This is where most people would probably say, “Asset! Homes are for suuuure assets!” But…not so fast.
You see, assets should be bringing in money, not draining it. Aaaand in most cases, homes tend to take a lot of money to maintain. Even when a mortgage is paid all the way down, or it was bought outright, there are still taxes and maintenance costs to deal with.
The property isn’t really bringing money in, is it? 🤔🤔
Super wealthy people would say that this type of home is more of a liability than an asset.
That’s not to say it’s not great to own your home, it just means that it’s not earning you lots of money.
The way to turn property ownership into an asset, and the way rich people do it all the time, is by renting it out. Once you start renting out a property you own, it becomes an asset. Renters are paying YOU, and the income can eventually cover the expenses of owning the property.
So, lesson #1 for building wealth is to focus on owning assets over liabilities.
Investments that bring money in, can pay for itself, and can be used to finance other investments are goldddd. 👌
2️⃣ How to use leverage the right way
Leverage doesn’t sound like a super sexy term…but don’t let it fool you. There’s actually no better way to build wealth than by leveraging your good debt.
Like we said before, your assets can be used to purchase more assets. THAT, friends, is what leverage is all about. It helps you grow your wealth exponentially, in a simple, sustainable way. You can borrow money against the assets you have, and use that to buy more.
Leverage uses borrowed money to increase your own return on investment. In real estate investing, you could leverage your mortgage for one property by purchasing, waiting for the price to increase, and selling at the right time.
Or, you could also use the mortgage for one property to obtain more revenue-producing assets. By repeating this process again and again, you can compound your investment returns.
Here’s lesson #2…learn to leverage!
3️⃣ Your focus should go where cash flows
You’ve probably heard that cash is king, right? Well, we believe that cash FLOW is actually the one, true king.
You know, like Jon Snow. 😉😉
Only this king really does win in the end, because cash flow should be the focus of every investor out there. When you invest in revenue-producing assets, you’re opening up streams of cash flow that will keep money pouring in over time.
That’s just extra income that you don’t have to do anything extra to make, and we love to see that.
If passive income cash flow sounds like your jam (and honestly…why wouldn’t it be?!), then multifamily apartment syndication is rrrrright up your alley.
The passive income you can make through apartment syndication is an awesome hedge against inflation.
Investing in anything that works well with inflation is seriously a giant win, and cash flow is like BFFs with inflation. They go hand-in-hand. When inflation rises, so does your asset investment return, increasing your cash flow!
So, that means lesson #3 is to invest in cash flow producing assets (like apartment syndication).
4️⃣ Increase wealth through tax efficiency
Our next study session is all about taxes. But don’t worry, this is more like a cheat sheet than a test, because we’re giving you some big time tax hacks. 😏😏
Understanding tax law is seriously so important when it comes to growing wealth. We know it can seem really complex, and that’s why so few people actually know that they CAN save money in taxes!
Liiiike, lots of money…
We believe in working smarter, not harder. Always. If we’re bringing in tons of money from working our bums off all year, but then have to turn around and give half of it back, well, that’s just not going to work for us.
But there’s a better way, and it’s totally legal. See, the government actually WANTS you to take advantage of tax breaks.
They’re written into tax law for that very reason – to be used! 🤟❤️
There are all sorts of incentives for investing in things that are considered helpful to society. And guess what? Housing is totally on that list. Investing in apartment buildings that fill a basic need for housing can have a very positive impact on your taxes.
Lesson #4 is to learn the ins and outs of tax law, to learn how you can save tons in taxes.
And of course, we’ve got you covered. If you want to dive deeper into how to save your money, check out Your Guide to Paying WAY Less in Taxes.
5️⃣ It’s simple…your life, your future, YOUR decisions
Alright, stick with us on this one. We knowww it can be a little scary, but on your journey towards financial freedom, it’s important to be confident in your own decisions. We’re totally past doing what everyone else is doing, just because that’s what everyone else is doing.
Now that you know better about financial education, you can do better in your financial decisions. It’s as simple as that.
We know how confusing it can all be – investing, managing money, saving for the future, and dealing with taxes…it’s a LOT. And most of us were never actually taught any of it properly. But that’s okay, because we’re all here now!
You’re soaking up knowledge to add to your own financial literacy, and that’s the start of a beautiful journey towards a safer, more equitable future. Trust yourself more than the noise around you, because you’ve totally got this. 💪
What’s the next step for your financial education? Well, you have the foundational lessons, and that means it’s time to turn them into action. We know juuuust the place to start…
💛 The Kitti Freedom Club is an awesome community of like-minded investors, looking to take control of their own financial education and futures. We even have a special bootcamp to make all of this financial learning simple, AND start putting it into practice.
Because learning is a necessary step, but real wealth is built through applying your knowledge into action. ✨
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