My own wealth story is a little different than most. For most of my adult life, I didn’t have a child and never thought I would. When I talked about starting businesses, people would tell me that I didn’t understand what it meant to have to provide for a family because I didn’t have children. When I talked about quick start cash by buying fix n flip houses only instead of selling them right away, move in so you get the capital gain exclusion, people told me I didn’t understand what it meant to have to move when you have kids.
And then we adopted a teenager and no one said that to me anymore. We still built businesses. We still moved. We still had real estate.
Recently, I was reminded of what it meant to really build assets together, as a family.
In this business success story, one of my clients just sold an asset that cost him $75,000 for $750,000. I’m not going to go into the specifics other than to say he’s found a niche where he lives. It can be a hassle with zoning and then finding the cash to invest $75,000, but once it’s done, you can sell it for big bucks within a couple of years.
Would you wait 5 years with little to no income for that kind of pay off?
In his case, he had another business going that the whole family worked at. There wasn’t a lot of money, but it kept everyone fed, kids in shoes and a roof over their head. They lived in a modest house that they had been able to purchase and finance before they started the plan to build out assets and sell them.
Now, it seems easy to think about waiting for 5 years for a payday like that. Especially since you probably already figured out that the 5 years it took was just the first time, after that it will probably be 2-3 years at most.
It doesn’t really put into perspective what it’s like to be waiting for an uncertain payday. What if it doesn’t work? What if your numbers are wrong? What if your premise is wrong? What if the whole thing is just wrong?
That’s the importance, in my opinion, of building assets together.
I’ve talked to couples where the husband is a very high earner, $500K or more in a job. The wife doesn’t work, and she is very busy with her social life and the kids. We talk about strategies – a business? No interest. Real estate? The husband is interested, because he wants some passive income to take the pressure off him.
The wife would need to be a real estate professional, though, to make the tax strategy work. She won’t hear of it. She’s too busy with the things she does now. And besides they need every penny of his high salary to maintain their lifestyle.
Everything will be fine for them, until it isn’t.
If you’re building assets as a family, building assets together, you will be stronger. You will succeed. Don’t quit. Talk together frequently.
Your whole family can be the business success story and that will transform the lives of your kids.