"I'm going to buy more money."
Backstep Forward Newsletter
by Kyle Mast
A short, to-the-point, weekly newsletter.
One challenge to take a step back.
One idea to propel you forward.
When my son was three, he came up to me and said, “I’m going to buy more money.”
He was just beginning to learn what money was and that it could buy things. So why not use it to buy more money? The comment was likely a casualty of being the son of a financial planner. Poor guy. However, it made me stop and think because it also contained a deep principle when it comes to resources.
I am currently evaluating whether or not to do some renovations to one of our short-term rentals. It would increase the bedrooms from six to seven and the bathrooms from three to four, which would also turn one of the bedrooms into an additional suite with an attached bathroom. It has been hard for me to pull the trigger on the project. However, this long-lost comment from my son popped back into my mind. Doing this project would “buy” more money from the property, likely paying back the original investment in less than a year with the increase in booking prices.
“Buying” more money is the basic principle of wise investing.
Backstep
Think about your normal spending. Do you mostly spend on things that don’t last? How much of what you spend is buying you more time or more resources down the road? Even worse, what are you spending your money on that will cause you to lose more money in the future? Take a hard look at why that spending is happening. Ideally, if it doesn’t have a very intentional purpose, eliminate it.
Forward
Identify one thing in your life, big or small, that you can do to “buy” more money. Prioritize those things that have the quickest payback. Is your house old and need some extra insulation in the attic? Are you paying for and driving a suburban when you could be driving a small crossover SUV? Are you mowing your massive lawn when you could hire your neighbor’s 10-year-old to do it, freeing yourself up for more productive work or family time?
Investing even a small amount of money now to reduce a recurring expense or increase recurring income will “buy” money for your future. (Share this on Twitter)
Kyle Mast
Blessed husband, growing father, business founder/owner/seller, real estate investor.