Financial Stability – It’s a Must…
In Silicon Valley, San Jose specifically, one needs to earn $185,000 today to be able to purchase a home. In the surrounding areas that number is higher. What does that mean? The majority of people entering the marketplace cannot afford to be home owners here. That’s a sad commentary – stable housing is a must for all of us to live happy, productive lives. One job, one layoff, and everything changes. These low affordability rates cause many problems emotionally, physically and psychologically. It puts people in situations where they are working so hard to survive, and pay their bills, that they lack the time to freeflow and creativity explore options on how to effectively navigate their financial lives.
It makes one consider how important it is to secure one’s own financial position by planning and being intentional about how we spend our money today, and establishing how we want tomorrow to look for us financially. This is an option for every individual regardless of their current circumstances or how bad the starting point is. We all had to begin somewhere. Being financially vulnerable is scary and one of my goals is to empower people to think long term, and plan for the inevitable financial bumps that arise in all of our lives. Securing one’s own financial position is important to remain sane in a world where everything is in flux.
Technology is changing our lives in dramatic ways, however real estate is still an asset class that is easily understood – we all live in some type of housing- apartment, single family home, multi-unit or condo.
If one is lucky enough to own a house that was purchased at the right time in the real estate cycle, well done. Consider your next move financially speaking. If you saved your hard-earned dollars and now would like to purchase a home, but prices are peaking for example here in CA. You have options. Next step is to diversify and start building wealth by investing passively for cash flow now, but with a long-term retirement perspective. There are states where housing still cash flows and the tenant essentially pays the mortgage. The U.S is not one large real estate market – there are multiple micro-markets to explore when California prices have skyrocketed. When affordability becomes an issues – the savvy individual looks elsewhere for opportunities. Cashflow is king but there are other benefits to investing in real estate. This is just one simple strategy to start to generate income and build financial stability. More to follow on this important topic. In the meantime consider today the amount of time you devote to developing your financial plan. One hour per week of focus could create the financial outcome that will make you smile!