Ask a real estate investment coach how to buy a house, and she’ll tell you how wealth is built. After all, she knows that unless you have an ownership stake, home and financial security can never be assumed.
TPHG thinks that looking at life through the lens of real estate lays out a SMART outline for #adulting.
The theory is straightforward. As you move through life, you have two financial assurances: money coming in (income) and money going out (expenses.)
If you understand how assets and taxes work for and against those things, you can use money to your advantage.
These are the building blocks that get you from “hello world, what now?” to “I build this life to share and to last many lifetimes” in four solid steps.
How wealth is built: TPHG’s 4-steps to Adulting
When you understand the rules, you can play the game.
Assets & taxes, adult-ing’s new power couple.
Consider this, you are at square one of your journey to adulthood. Someway, somehow, money has started coming into your life. You can save it, you can spend it, you can give it away. You can mix n’ match to your liking… and your lifestyle.
And when that money comes in the form of a paycheck, inheritance, royalty/commission, business concern, or investment, taxes enter the scene.
ADULTING STEP 1: Employment
You + Work (taxable money coming in)
Welcome. Now you have options — lots of options 🤩 — but it still all boils down to the same way of conducting yourself: you can save it, you can spend it, you can give it away. You can mix n’ match to your liking… and your lifestyle. We can’t tell you how much to save or how much to give away, but we can offer some very solid investing advice about how to spend it. You guessed it….property. (By the by, did you know that you can legally purchase a home as young as 16? Why rent your first apt when you can own it?)
ADULTING STEP 2: Home Ownership
You + Asset (tax break…. now we’re talking.)
It’s time to stop thinking like a renter and start thinking like the CEO of your own life. You already have this thing called “living expenses.” Do you continue to pay out for the privilege of living in a property you do not own and have zero say in the care and continuance of? Certainly, not. Pay the same money to the “mortgage man” (instead of the “landlord”) and start banking equity, that growing pocket of financial security that can be cashed out, borrowed against, or grown with interest.
ADULTING STEP 2.a, 2.b: Marriage and/or Family
You + Yours (another tax break…. Cha-ching!)
In the eyes of the IRS, individuals who claim a Married Status become immediately eligible for reductions in federal tax obligations. Add children to the mix and the deductions are significant. Hmmm, looks like you’re gonna need a bigger house….
ADULTING STEP 3: Real Estate Investment
You + Investment Property (more tax break? Yes, please.)
If you’re about to outgrow your first property, it’s time to think about renting it out and looking for your move-up single-family home or life upgrade. Now, you see why we’re always saying that #equityiseverything, because pulling from your equity or borrowing against it is how you’re going to have the financial security to make your next money move. Add “Landlord” to your resume and add passive income to your “money in” column.
ADULTING STEP 4: Small Business / Builder
You + Development (S/C-Corp rules the tax-bracket roost, get in there.)
Hey, landlord, you’re doing a great job. You’ve put a roof over the head of a wonderful tenant; your asset is lived in and being looked after. You’re investing in it’s value and loving seeing that rent check come in. Nice. But why stop there? You have the tools, the experience, the resources, and the know-how, to share your good fortune and entrepreneurial spirit. Either in commercial or residential projects, use your powers for good by leading efforts to design/build thriving communities. #legacybuilding
While TPHG’s 4-steps to Adulting may seem easier said than done, it is a worthy and attainable plan for taking charge of your life — and keeping it. Real Estate Investing is both the framework and the vehicle for making it work on your terms.
Thanks for your interest in our philosophy and mindset. We’re building a different kind of real estate company; these stories are our brand journey. #equityiseverything