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|Subject: Re: It's Never Too Soon To Start||Date: 2/23/2012 9:04 PM|
|Author: StockGoddess||Number: 70208 of 81985|
Savers and spenders always seem to marry....
Forget the birds and the bees, we need to be having money talks with young kids!
My recent financial talk with DD (now 15) was about profit and loss from owning a rental property. We were on the way to the doctor and just chatting in the car.
I said "See, you put 20K down on a rental - less than most people spend on a car. Paint it, rent it for more than the payment. We get about $200 a month more than the payment."
"BUT - this month we had to hire a plumber to fix the toilet and disposal. That was a negatie $450"
But USUALLY you make $200, right mom?
No...actually USUALLY we put the extra $200 towards the morgage so we just break even. Even if we didn't, with repairs and such we don't make a lot.
(puzzled stare) So....why....
See, in 3 more years it'll be completely paid for. The tenants will have bought a house FOR us. THEN we can choose to either keep the entire $800 a month as pure profit, OR sell it for $100K and bank the entire thing.
Wow...$9600 a year or $100K. Mom, you make it sound so EASY.
No, it's NOT EASY. It's SIMPLE. But it is NOT easy!
What's the difference?
Imagine you want to lose weight. Losing weight is SIMPLE. Eat less, exercise more. Losing weight is NOT easy.
(look of enlightenment)
Kids are fun. I don't know what the beyatchin' is about.
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