Afford Anything

You Can Afford Anything ... Just Not Everything. What's It Gonna Be?

How to Overcome Your Fears

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How to overcome your fear and live your dreams

I once asked my friend Monica: “What would you do for a living, if you could do anything in the world?”

I expected her to pause, but she knew the answer immediately.

“I’d open my own clothing boutique,” she said.

It was a fitting response (no pun intended). There’s a positive feedback loop between talent and passion. We enjoy what we’re skilled at, and we’re skilled at what we enjoy. Monica loves clothing; every outfit she wears is a masterpiece.

Monica lives in a city of 5 million people. She could certainly find a niche for her boutique somewhere in her city. It’s an achievable dream. It requires hard work, but the formula is established: Raise funding. Rent a space. Source material. Learn bookkeeping. Advertise.

But Monica thinks it’s a pipe dream. She makes zero effort towards it.

Monica holds a ‘respectable’ office job — $40,000 a year plus benefits in a quiet suburban office park – and this fall she’ll start graduate school.

And I’m scratching my head.
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This was Every Landlord’s Nightmare …

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The excellent, the normal, and the terrible. Two weeks ago, when I visited my rental properties, I saw them all.

The excellent, the normal, and the terrible. Two weeks ago, I saw them all.

I’d like to share the harrowing story. It’s a story of triumph, resilience, and late-night burritos. A story that immersed three days of my life — and is now over, chapter closed, with nothing else needed for at least another year.

It’s the story of three rental units:

  1. One that’s excellent
  2. One that’s normal
  3. One that’s everybody’s worst nightmare

Let’s start with the horror story first.
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I’m 34 Years Old and Own 8 Homes. Here’s How I Did It.

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Money Magazine Paula Pant Afford Anything

Well hey, would you look at that!!

Money Magazine wrote a huge feature on my real estate investments. And they NAILED the headline. Damn.

I’m 34 Years Old and Own 8 Homes. Here’s How I Did It.

I’ve been writing about real estate investing since the beginning, and I never thought of a headline that clever! Whoa. I get the +1 for rental properties, and they get the +1 for headline-writing. 🙂

I’ve been reading Money Magazine for more than a decade; I’m thrilled to see myself get featured in it.

Seriously, check out this article.

And thank you for being along on this crazy, epic journey.

____

By the way, the course Your First Rental Property is going to launch in the next few months. Join the VIP List to receive special updates about this upcoming course, which I’ve been constructing for two years.

15 Insightful Books about Investing, Money, Work and Life

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What's on my bookshelf?

I love to read. If you share my enthusiasm, you might enjoy this variety of books about money, work and life that I recommend.

Feel free to scroll, or click on one of these links to skip ahead to your favorite section.

Productivity Books

Deep Work, by Cal Newport

I’ve raved about this book several times, and I’ve also interviewed Dr. Cal Newport on my podcast, where he shared his tremendous insight into productivity and focus.

If you’re tired of getting distracted by email, social media, and small tasks, read this book.

It’s easy to get trapped in an endless cycle of replying to emails, Slack chats, text messages and Facebook messages. You respond to dozens of tiny tasks and inputs throughout the day. The result? Deep work gets replaced with distraction.

Your ability to create something amazing, and to make major breakthroughs, gets replaced by the constant ding and buzz of incoming messages.

But you won’t make progress by living inside your Inbox. Progress comes from deep work — from focusing on the one thing that most moves the needle.
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Our Rental Properties Collected $125,618.49 in 2017. Here’s How Much We Kept.

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How We Made Passive Income from Real Estate in 2017 - Cash flow report

Hey! I know you love numbers, so I’ll cut to the chase:

Last year, our rental properties earned $125,618.49 in gross income.

After expenses (including the mortgages), the properties netted $43,211.67.

This is our passive income from real estate in 2017. It’s the cash flow the properties put in our pocket last year.

And this is how we’ve reached financial independence through real estate.

____
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Your Money? Or Your Life?

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Your Money or Your Life Book 2

There’s a scene in a classic 1950’s TV show, The Jack Benny Program, in which a mugger points a gun at the title character.

“Your money or your life,” the mugger says.

Jack Benny is silent.

“I said, your money or your life!” the mugger repeats.

“I’m thinking it over!,” Jack replies.

(You can watch it here. The mugger scene starts at 19:55).

The scene is funny because it’s absurd. When we face a choice between our money or our life, of course we’d rather live.

But day-to-day, most of us exchange our precious hours for a paycheck. We prioritize money over our life. And in that regard, the scene is also funny because it’s true.

________
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Timeline vs. Intensity

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The relationship between timeline and intensity - saving money

“My dreams feel impossible. Everything is so far away. Five more years until I pay off the car. Twelve more years until I pay off the house. Do I have to wait until I’m 50+ to enjoy life?”
______

Let’s say you have a goal that’s audacious and unconventional.

You want to create $45,000 per year in passive income. Or you want to live 100 percent debt-free. Or you want to spend a year traveling across Europe, South America and Southeast Asia.

Maybe you’d like to take 6 months off work to garden, exercise, and spend time with your kids. Or to focus full-time on starting a business or becoming an artist.

How soon can you do this?

Sooner than you might think.
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Here’s a Counterintuitive Idea for Your Retirement …

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Here's a counterintuitive idea for your retirement - addressing the 4 percent rule

Once upon a time, in southern California in 1994, there lived a man named William Bengen.⠀

His friends called him Bill.

Bill was born in Brooklyn, and he studied aeronautics at MIT. He wrote a big paper on advanced model rocketry. Then he became an executive at a soft drink company. Finally, 17 years later, he retired to sunny southern California.

Well, kinda.

Bill was smart and full of energy. He couldn’t stay retired for long. He decided to get a masters in financial planning. He opened his own firm.

And he started reading papers that … bemused him.

You see, at this time, many financial planners were claiming that since the stock market historically returns 7-9 percent compounding rates on average, retirees could withdraw and spend 7 percent of their portfolio. ⠀
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Bill had a hunch that this was misguided. He decided to prove it.
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Why Money Won’t Solve Your Problems

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Money will solve your financial problems. But it won't magically fix your health, mood, weight, relationships, or general dissatisfaction with life. If you want to improve anything, make it a priority.

A few years ago, my friend J.D. Roth told me a story that’s stuck in my mind ever since. ⠀
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During his 20’s and early 30’s, J.D. was broke and in credit card debt. But in his mid-30’s, he started a business, and within three years, he sold it for a significant sum. He became wealthy almost overnight. ⠀
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That’s where the story begins. ⠀
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After his fortunes turned, he took a look at the rest of his life and realized it was still brimming with problems. He felt unhappy with his current relationship, weight, overall health, poor eating habits, lack of travel and lack of exercise. ⠀
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He was financially abundant, but unhappy with the rest of his life. ⠀
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That’s when J.D. realized that throughout his life, he had used money as an excuse. ⠀
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8 Money Myths That Might Be Holding You Back

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Learn the truth behind 8 common money myths that might be wrecking havoc on your finances.

I live in a two-bedroom condo. It’s furnished with a used couch and used coffee table.

My shoe rack is made from old cardboard boxes glued together.

Almost everything else in my home is from Craigslist, Amazon and Overstock. I consider IKEA to be a splurge.

My favorite hobbies are hiking and camping (free and cheap).

My friend Amanda cuts my hair. (In fairness, she’s a hairstylist.)

I can’t remember the last time I got a manicure or pedicure.

When I travel overseas, I fly with airline miles and visit countries where the exchange rate works in my favor.

The cheapest car I’ve ever purchased cost $400. I drove it for a year and a half, then sold it for $200.

The newest car I’ve ever purchased was 4 years old.

I bought my laptop and phone used (refurbished).

I lived with roommates until I was 31.

And I never need to work a job I dislike again.

This is what financial independence looks like.
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