I don't diversify. I'm following Grant Cardone's formula for success. And what would that be?
1. Increase Income. As Grant would say, "income is king." Most people don't make enough. Find ways to make more. $100k ain't enough. Consider the government is going to take 35% out of the $100k. You're down to $65k. To take care of your mortgage, house, cars, retirement, leisure, food, emergency fund, etc. If you make $50k find ways to make $65k You make $65, find ways to make $100k. Find ways to make $150k and so on.
2. Live on what you make, put the rest in a sacred account. Could you live on $3k a month? Good. Put the rest in an account you can't touch. Have the added income taken out immediately. You can't see it and touch it for now. So, you make $6k a month. Live on $3k and pack away the added $3k. In 12 months you have $36k. Hopefully, it's more if you've been increasing your income. You save to invest! Not save to save.
3. Don't diversify. Many people are going to disagree with Grant on this one. Grant doesn't diversify. What he's done in his life is when he banked his first $100k he threw it all into real estate. As Grant would say, a $5k, $20k or even a $50k investment is not enough. You have to throw down to see any gains. If you were to invest $20k how much are you really going to see as an investment? Not much. That's why you want to make big plays.
4. Invest in real estate. Multi-family apartments to be exact. Perfect vehicles to make money. Why? Because everyone needs a place to live and the millions of baby boomers are retiring, selling their homes and settling into apartments. Plus, unlike stocks you can touch your real estate as well. Grant doesn't worry about leaky faucets, because he has people who overlook all of his properties. Multi-family is great because you have many doors all in one location paying rent. And, you use their rent payments to pay off the mortgage on your complex. So, if you have a 20 door complex paying $1k a month and you have 16 filled you're still getting $16k a month. That's what makes multi-family so appealing. I find it funny that the people who dismiss real estate as a vehicle for obtaining wealth have never ever owned apartments. Yet, they'll give you advice.
It's all worked for Grant. He has over 4k apartments worth nearly $500m. He also has a sales company worth over $100m. He's a New York Times best selling author with books such as The 10X Rule, Sell or Be Sold, and just recently Be Obsessed or Be Average. He's also worked with Google, Facebook, LinkedIn, US Army, All State, T Mobile, Aflac, Microsoft, etc...
I know I'm riding his jock. Much of what he says resonates with me because it's a different way to think about my finances. I've used his approach and I'm doing better financially than ever. I have my job which generates $60k. I also sell on eBay and Amazon. When I taught in South Korea I put away large sums of money. I was able to live cheaply and it's tax free. I'm getting very close to that $100k. My goal is to have multi-family apartments so I'm generating passive income. If it's done correctly, it could be a huge payoff. Why get older with only a little bit of money? I want abundance so I can take 2 month vacations and not have to worry. I want to get to the point that I can take care of my dad without the worry that I only have enough for myself.
You can do it, but you're going to have to change your mindset. If you think rich people are bad than you'll never have financial freedom. If you think getting wealthy is a pipe dream you'll never get there. I live 10 minutes from Avalon and Stone Harbor NJ. Mansions galore. Millionaires everywhere. There is no shortage of money.
Well this is just my opinion. I don't expect anyone to agree. This is the course I'm following because I know deep down inside that it's the correct path. For me anyway.