Today, I want to talk about building wealth, even when a person is working an entry level job.
What Is Wealth?
What is wealth? It is not the same as having an account full of cash to spend. Wealth is owning valuable, tangible assets. Items that increase in value that can be passed on to heirs. Items that can be used as collateral when borrowing money from financial institutions.
I understand that many temporary employees at Elite Staffing Solutions are starting up from a modest position in life. That’s okay, this post can help you make a plan to begin building wealth. It’s not hard, it just takes strategy, planning, and dedication.
I am writing this post from experience. I want to share some of the most valuable concepts I have learned as an entrepreneur who has been out of money, injured, and homeless at one point.
Real Estate Is The Goal!
The long-term goal is to own real estate out-right. The reason real estate is the key is that it is a valuable tangible asset. Once you own real estate, you can finance more real estate. You can rent it, and you can sell it at the right time to make a profit. You don’t even have to pay your home off to borrow against the equity you’ve built in it. Most of us are paying rent anyways, why not build wealth while paying a mortgage instead?
Building Your Credit Score
One of the planning tools you should use in your journey is Credit Karma. This is a website and app that allows a person to monitor their credit and find tactics to improve it.
Now that you’ve defined an intended outcome, how do you actually get to the point where you can buy a home?
Getting Started Is The Hardest Part
The next suggestion I am going to make is much more popular in the mountains of Colorado, where I currently live. It is worth some real consideration as a short-term sacrifice can generate a long-term payoff.
Creative Solutions Pay Off
Housing is nearly ten-times as expensive in Summit County as it is back home in Wichita. Rentals are few and far between. Competition for rental property is fierce. As a result, many employees in this community live in campers and vans that have been converted to live in. This eliminates rent. And for those who do finance, you can justify a much higher payment because your car payment also covers mortgage/rent. It is not a good long-term investment like real estate though.
How I Consolidated Costs To Get Caught Up
In 2016, I was pretty hard-up. Still recovering from a crippling injury and failed business. I wasn’t ready to give up on the mountain life that I was trying so hard to live.
At the time, I was in a serious relationship with the woman that I eventually married. I was not ready to just come back home to friends and family while leaving her behind, so I bought a $500.00 van, converted it into a home, and obtained a good paying job as a bartender in Vail, Colorado.
After just a few months, I had saved up several thousand dollars, repaired my car, paid 3-months rent up-front that is required at new rentals here, and sold the van for a profit.
I’m not saying that van life or living in a camper is feasible for everyone. But for those that can swing it, driving a vehicle you can live in becomes a huge asset and an even bigger savings. For everyone else, some creativity, strategy, and restraint can still produce amazing results, so get out your drawing boards!
Home Ownership Is Hard To Achieve Where I Am
I was not able to qualify for a mortgage after I sold my van. Real estate and HOA fees are so expensive where I live that it would be very hard to get ahead in life for a long time purchasing a pre-owned home here. There is no chance of hiring a builder within my budget either.
How I Plan To Overcome The Cost Of Home Ownership
My plan is to buy land and build a home in my market with a few contractor buddies. Using sweat equity to build equity.
I just looked up the price of homes for sale in Wichita. The affordability almost gave me a heart attack. I just cannot believe how much home you can get for so little back in Kansas.
A mortgage for many homes in Wichita is cheaper than rent at a much smaller apartment. That is one of the great things about Wichita. It is an extremely affordable market to own a large home in. That is also my next point.
Home Ownership In Wichita Is Obtainable
$400.00 rent doesn’t get you much in Wichita. A small studio apartment if you’re lucky. But a $400 monthly investment in mortgage and associated costs will purchase a 2+bedroom 2+bathroom home without an HOA in Wichita. It may need a bit of updating, but approximately $80,000 will buy a house that is in reasonably good shape with a fenced yard and a garage.
When you think about it, things get much cheaper as our credit score and income increase. The goal should be to eventually spend money on investments instead of expenses. Purchasing a home instead of paying rent.
Moving Up In Life
For millions of Americans, purchasing a home is the first step in a long life of upward mobility.
So far, we have discussed managing our credit scores. We’ve talked about creative ways to save money and give our savings a jump-start. Tactics like living in a van or camper for a short period of time. Then we spoke about a strategy to begin building wealth, home ownership.
After years of growing and observing the world, I have realized that moderate investment in real estate is one of the most effective tactics to build wealth. It can be the spring board that helps one improve their quality of life.
Anyone Can Do It!
I hope this article inspires entry-level employees in the Wichita Area to spend some time searching for local real estate online. Using Realtor.com there is a tool that figures your total monthly payments.
Look at what your hard-earned money could be investing in. Next, get the Credit Karma App. Then form a plan to improve your score if needed. Finally, find creative ways to save and make money in the short-term.
Once you’ve figured out your credit and saved some money, it is time to purchase your first home.
In Wichita, entry-level work can provide enough income to buy a nice starter home. Once your money is going towards home ownership instead of rent, you have begun to build wealth in your life. Now, your quality of life and personal wealth are in your own hands.
Do you need a place to get started? Contact Elite Staffing Solutions for entry level opportunities at (877) 500-0420
Building Wealth Even When Working At The Entry Level
Article by Mike Gamache – Blogger, Entrepreneur