Latch Key Kids, This ones dedicated to you!!
If you were a latchkey kid…. your experience may have looked like this… you come home to an empty house, you and your siblings would fend for yourself while mom and dad worked. Typically needed to figure out dinner for yourself…. Mac and Cheese, TV dinners and microwave chicken nuggets were in regular supply. Remember when the chicken nuggets would stick together and you needed to pry them apart with a knife or when they didn’t cook right!?
SO MUCH WORK!!
When you invest in short-term, high risk, high reward investments …
I call this Microwave investing…you end up working more than you expect you would to get the short term results.
You end up working more than you expect. Let’s look at the last bubble. Those flipping house over leveraged, looking for the highest high return in the shortest time possible….Chicken Nuggets anyone?
This is a short term benefit, and as we know chicken nuggets if eaten every day, are not going to give us the long term benefits from a health perspective. (I am not a doctor so double check with yours just to be sure 😊)
So you flip a house….then what? You get your return, pay your Capital Gains taxes like a good American and then have 2 options.
- KEEP FLIPPING
- LIVE ON THE EARNINGS
Well you can’t stop now….the money needs to be re-invested…so you are forced back into investing in another flip….then another and so on….
And now guess what?
You’ve created another job for yourself….This is not passive investing! Do you recall Chapter one: the crock pot ion which we had a plan which created time freedom? Instead, you have created a 2nd job for yourself…possibly your spouse and children who are now helping to get the properties completed so you can get them back on the market before the next crash…. Microwave investing will never create time freedom.
In an effort to get rich quick you have created another job for yourself….Not only that, you have created a large tax liability drastically reducing your return/income!?
Microwave food was never intended to be the end all, it was suppose to give us substance in a pinch…its fine in limited quantities or for short periods of time but you need to return to a better nutritional base….
So what is your nutritional or “financial” base for Passive investing?
Are you investing in your Crock-pot or in your Microwave?
This is by far the simplest way I’ve ever been able to explain the difference between getting rich and becoming wealthy.
If you didn’t catch Chapter 1: Crock-pot investing…Check it out Here
Don’t Forget to Schedule some FREE Time with Anne to help you start planning for 2019!