I recently read articles about the Americans saving rate and the result is really shocking:
- If you sum up all your assets and liability and have a positive 100$. You are better than 80% of all Americans
- If you have 1000$ in saving. you are better than 63% of All Americans
I can not believe how bad this is. To put it another way, people are relying on plastic (credit card) for their rainy day and the government to support them.
Saving is the fundamental step toward your 1st deal investment. I know there are way that you can leverage and use OPM to have none of your money in the deal. However, do you really think that people will lend you money if you have zero experience and put none of your money down? Not a chance.
Saving also demonstrate your money management skill and your discipline toward a particular goal. Investing, especially in real estate take discipline, consistent and persistent. you can demonstrate these characteristic by having a big fat bank account to show it to the lender and potential partners.
Saving is fundamental and it is the 1st step toward your 1st investment deal