Make bank acct #2 fund your life, not bank acct #1
Most people just have bank account #1. Its the account that their day job income goes into....the account that pays for Chipotle...the account that pays for their mortgage, car(s), travel, savings, investments etc.....and if you make enough active income this works just fine. But, imagine if you had a second bank account....an account that gets filled every month with extra income on top of what you make at your job. And imagine if this amount was enough to pay for the expenses I mentioned above. What would happen to the income going into bank account #1? Well, that's what you'd get to decide, and that's what I'm here to teach. Bank acct #1 gets funded by your day job. Bank acct #2 gets funded by your real estate cash flow. One of my property tenants use to pay me rent 6 months in advance. I would receive a check for $16,200 up front to cover 6 months rent ahead of time. And $8,520 of that was free and clear profit after I'd pay that mortgage each month for 6 months. Not a crazy amount...but it was just about enough to cover my "miscellaneous expenses" for 6 months, before he would pay me again. I'd go out to eat? I'd spend from that account. I booked a vacation? Came from that account. I bought a friend a gift? That account. It's one of the best feelings I've had in a financial sense because it felt like free money. Obviously, I earned it from finding that deal, having the means to buy it and hold it for years. But having a second bank account that funds your life before having to touch bank acct #1 is one of my favorite hacks, and the main motivator for me wanting to have bank acct #2 have $10k/month free and clear in it. An account that rolls over and just continues to grow if you don't spend it all. $10k turns into $17k. $17k turns into $25k. $25k turns into $33k....and so on...then you decide what you want to deploy that larger chunk on. New property down payment...dream car down payment....$40k watch.... Pay off your parent's mortgage....you're in control.