financial planner Stephen Zelcer

Video – 4 Financial Steps I wish I had taken sooner


Video Transcript


Hey everybody Stephen Zelcer here. I was thinking to myself, what are the financial steps that I wish I’d started sooner. Steps that, had I taken them years ago, they really would have helped me solidify my financial grounding right now. And I thought about it and I came up with the following 4 Steps And I would encourage you, if you know anybody, between the age of 25 and 35 share these steps with them, because if they get started on these steps sooner it will really provide them with a solid foundation for the rest of their financial lives. So let’s go.

Step Number 1 is Budgeting

Now when I say budgeting I know I got to be careful, because some people think like budgeting is like a foul word to use. When some people hear the word budgeting they envision a parental figure wagging their finger and saying you may not more than this amount of money. That’s not what I mean by budgeting at all. By budgeting I just mean, get a list of what your expenses are, and also what your income is. The purpose of that list is not to set limits that you are only allowed to spend this and you’re not allowed to spend that. It’s not to wag a finger either. The purpose of that list is just to develop a consciousness an awareness, of what it really costs to live. And what’s going on in your financial life. That’s Step Number 1.

Step Number 2: Setting Goals

So you are where your are right now, but where do you want to be? What needs to happen in your life for you to feel that you are heading in the right direction? And doing things the correct way. Start thinking about what your goals are. Do you have a goal to buy a house? Do you have a goal to start a family. Do you have a goal to retire by a certain age? Do you have a goal to travel to special places? Or travel with a certain frequency, however many times a year. Do you have a goal to be debt free? Do you have a goal to hang out with your friends and family, how ever often? Just try and envision yourself. What are your financial goals? And by knowing what your goals are, now you have established your destination. Your point B.

Step Number 3: Automated Savings.

And when I say automated, I mean you’re out of the picture. You just set it and forget it. It happens automatically. When you’re working, money comes into your account, and the account automatically sends money over to either, to an IRA, or to a certain stock purchase program or to your 401k, whatever happens, it happens without you needing to think it through. Because if you have to think through everytime you make an investment decision, you ‘d drag your feet, you’d second guess yourself. It wouldn’t happen, so automate your savings.

The Fourth Step: leveraging real estate.

Now I know this is not for the faint of, but I would encourage young people to get into real estate as quickly as possible. And leverage it. Meaning use other people’s money to make you money. Your own money, you have limited resources, you’re young. It’s not so easy to build tremendous net worth with just your own resources. But when you learn the power of leveraging other people’s money, that’ll really accelerate the growth of your net worth. So let’s talk about how to leverage real estate. Buying real estate should be one of your first goals. And when you buy that property, have in mind the following: This will not be your permanent abode. Don’t buy the property thinking that that’s going to be your place for ever more. There you’re going to live happily ever after. Do not think that way. Buy that property thinking, you’ll live in this property temporarily. And you will eventually move from this property, and convert this property into a rental property. When you convert that property into a rental property, then you’ll start seeing the major benefits of owning real estate. Number 1 – you’ll have, hopefully, positive cash flow from that rental. Meaning, that the rent that your tenant pays you, will hopefully be more than enough to to cover your expenses, and then some. Giving you positive cash flow. Number 2. Is that their rent that they are paying you, is helping you pay down your mortgage. And so your principle gets reduced, reduced, reduced, which means that your equity gets increased. That means somebody else’s money is helping you build equity in your home. Perfect.

Fourth, because you own this real estate, the property, hopefully will appreciate in value. And so what that means is, that you have this asset, which you leveraged, and that asset appreciates, any bit of appreciation is building your equity, it’s building your net worth. And then, of course, who can forget the benefits of one of the unknown, or not so well known tax benefits of owning real estate, is that you are able to write off depreciation on that property every year. Saving you a lot of money in taxes. Tremendous benefits to owning real estate.

So let’s summarise:

Number 1 – Budgeting. Know where you are right now. Number 2 – Set goals for yourself. Between those two points, point A and point B, you will develop a tremendous financial consciousness. Number 3 – Automate your savings. Just happens autopilot, get out of your own way. Number 4 – Leverage other people’s money. And get yourself into real estate. Start enjoying all those benefits of real estate ownership.  All 4 of those combined, will set you on such a solid foundation. It’ll help you, not just many years down the road, it’ll help you in the near term. You’ll see your financial life stabilising. And you’ll feel good and confident. And you’ll know you are on the right path.

Good Luck!

If you’re looking for a program, to help you get started putting all these things together, contact me and we will make it happen.

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