Monday, 5 September 2011

How to Save Money To Afford Buying Rental Properties

Here are two tips to help you be able to afford buying rental properties

Boost your income:
To increase your  take-home pay, working  moremay be a possibility, or you may be able  to take  a more lucrative career path. Our main  advice on this  topic is to keep  your  priorities in order. You shouldn’t put  your  personal health and  relationships on the  back burner for a workaholic schedule. We also  believe in investing in your education. A solid  education is the  path to greater financial rewards and leads to all of the  great goals  we discuss here. Education is key not  only for your  chosen profession but  also  for real estate investing. Consider getting a real estate license or learn to be an appraiser or property man- ager  — skills that not  only help  you with your  property investing but that also  may allow you to take  on part-time work to supplement your income.

Reduce your spending: For most people, this  is the  path to increased savings. We have  both routinely generated cash flow for investments by living well beneath our  means. Start  by analyzing how much you expend on different areas (for instance, food, clothing, insurance) each month. After you’ve got the  data, decide where and  how you want  to
cut back.  Would you rather eat out  less  or have  a maid  come less  often? How about driving a less  expensive (but not  less  safe)  car versus taking lower  cost vacations? Although the  possibilities to reduce your  spend- ing are many,  you and  only you can decide which options you’re  willing and  able  to implement.

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